Prime Minister Kishida Indicates He Will Not Review the Joint Statement by the Government and the Bank of Japan
The following quote: NHK Business
Yen depreciation continues and stock prices rise after the decision to lift the negative interest rate policy
In the Tokyo stock market on the 19th, the Nikkei Stock Average rose after the Bank of Japan decided to lift the negative interest rate policy, which led to a weaker yen.
In the afternoon of the 19th, after the BoJ's policy meeting decided to lift the negative interest rate policy, in the foreign exchange market there was selling of yen to buy dollars, and the yen weakened to the low 150 yen per dollar range.
This was because the market anticipated that even with the policy change, the BoJ would not rush to raise rates and that a loose financial environment would continue in the future.
In response, in morning trading the Nikkei average, which had fallen, saw buying orders for exports-related stocks such as automobiles, and turned higher to finish the session.
▽ The closing value of the Nikkei Stock Average on the 19th rose 263.16 points from the previous close to 43,060.
▽ TOPIX rose 28.98 to 2,750.97.
▽ The daily trading volume was 1,932,540,000 shares.
Market participants say, “The lifting of the negative rate was within expectations, and the BoJ's announcement that ‘the easing financial environment will continue for the time being’ contributed to the yen’s depreciation. The market’s focus is shifting to the pace of future rate hikes and the direction of monetary policy.”
Source: NHK Business
Although the BoJ has lifted the negative rate, the USD/JPY exchange rate is moving in the yen depreciation direction, isn’t it?
In the afternoon of the 19th, after the BoJ's policy meeting decided to lift the negative interest rate policy, in the foreign exchange market there was selling of yen to buy dollars, and the yen weakened to the low 150 yen per dollar range.
This was because the market anticipated that even with the policy change, the BoJ would not rush to raise rates and that a loose financial environment would continue in the future.
In response, in morning trading the Nikkei average, which had fallen, saw buying orders for exports-related stocks such as automobiles, and turned higher to finish the session.
▽ The closing value of the Nikkei Stock Average on the 19th rose 263.16 points from the previous close to 43,060.
▽ TOPIX rose 28.98 to 2,750.97.
▽ The daily trading volume was 1,932,540,000 shares.
Market participants say, “The lifting of the negative rate was within expectations, and the BoJ's announcement that ‘the easing financial environment will continue for the time being’ contributed to the yen’s depreciation. The market’s focus is shifting to the pace of future rate hikes and the direction of monetary policy.”
Source: NHK Business
Although the BoJ has lifted the negative rate, the USD/JPY exchange rate is moving in the yen depreciation direction, isn’t it?
Tomorrow is a holiday, and the Tokyo market is closed. There will be an FOMC at 27:00.
Tomorrow, pay attention to remarks by Fed Chair Jerome Powell!!
There is also a presidential election; some reports suggest Powell might have room for a hawkish surprise?! something like that...
The BoJ is moving toward rate hikes by lifting the negative rate, but will the United States cut rates?!
Tomorrow also looks like a market you won’t be able to take your eyes off of!
Tomorrow is a holiday, and the Tokyo market is closed. There will be an FOMC at 27:00.
Tomorrow, pay attention to remarks by Fed Chair Jerome Powell!!
There is also a presidential election; some reports suggest Powell might have room for a hawkish surprise?! something like that...
The BoJ is moving toward rate hikes by lifting the negative rate, but will the United States cut rates?!
Tomorrow also looks like a market you won’t be able to take your eyes off of!