The BOJ has linked inflation expectations with annual wage negotiations, capital expenditure and oil prices, none of which rose quickly enough to make people think inflation would get much of a grip, economists say.
Stock investors next week will focus on the Federal Reserve’s monetary policy decision and whether economic growth trends have given the USA central bank reason to raise interest rates off of rock-bottom levels.
The Fed and the Bank of Japan both issue their decisions on interest rates and other policy parameters next Wednesday.
Japanese companies that are suppliers to Apple surged after the USA company’s shares climbed to their highest level of the year amid growing optimism over the iPhone 7’s market reception. The index of global stocks was up 0.58 per cent.
The MSCI Asia Pacific Index was up 0.6 per cent, trimming this week’s drop to about 2.2 per cent.
Spot gold fell to a two-week low, trading down 0.48 percent to $1,316.26 an ounce.
On the other hand, the September manufacturing activity indices for the NY and Philadelphia Fed regions both improved, shooting up 11 points to 12.8 in Philadelphia and rising to -1.99 points in NY, still in contraction territory after a reading of -4.21 in August.
APN News & Media has urged its shareholders to approve today the proposed sale of Australian Regional Media or ARM for A$36.6 million to News Corp. That boosted the ProShares Ultra-Short Treasury 20+ Yr (ETF) (NYSEARCA:TBT) recommended to Edge subscribers to an 8.3% gain so far this month.
Guinness owner Diageo, worldwide bank HSBC Holdings and British American Tobacco all climbed at least 1.3 per cent, as stocks that earn a high share of their revenues in non-sterling markets rose in trading.
Estia Health’s chief executive and managing director Paul Gregersen is stepping down from his positions after the company missed its earnings guidance earlier this month. The Commerce Department releases retail sales data for August on Thursday, Sept. 15, 2. As of the end of Thursday, the dollar/yen traded at 102.42. In light of the USA dollar’s rebound, the pair managed to recover towards 103 last week – although this was not helped by corrections across the equity markets.
The major exporters are mostly higher despite a stronger yen. The Nasdaq Composite climbed 1.47 percent to 5,249.69.
Clothing retailer Next slid 4.9 per cent after saying the current quarter will be its toughest this year and Brexit-induced price increases will hurt 2017 sales. The Dow Jones industrial average ended 1.4% lower at 18066.75 led by 2.73% loss in Chevron. In the oil sector, Inpex is down 0.5 percent and JX Holdings is losing 0.2 percent. Japan Display Inc. soared 11 per cent, while Alps Electric Co. jumped more than 6 per cent.
The yen gained 0.2 percent to 101.84 per dollar, putting it up 0.7 percent for the week. New Zealand’s NZX-50 was +0.8% higher and Singapore’s Straits Times Index was up +0.8%.
Asian stocks firmed on Thursday after weak United States data reduced the already low chance of an interest rate increase by the Federal Reserve at next week’s meeting, sending the Treasury yield curve surging to its steepest level in 2-1/2 months. Europe’s broad FTSEurofirst 300 index closed up 0.55 per cent at 1,339.13.
The major European markets also moved to the upside on Thursday. Economic data did little to boost market sentiment: euro-zone ZEW Economic Sentiment for September rose less than expected; German ZEW Economic Sentiment for September came in lower than expected, unchanged from previous month; the final reading of German inflation confirmed preliminary estimates, with monthly inflation unchanged in August from July but increasing 0.4% from a year earlier.