News and Reviews Asian Economic Zone

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News and Economic Review Zone Asia (South Korea)

 

Concern decline in South Korean exports of the Bank of Korea

Wednesday, May 6, 2015

 

South Korean exports, which declined in the first 4 months of this year, has become a major concern of the Bank of Korea.

 

"We are monitoring the impact of the weakening yen as Japanese companies began to reduce the price of products," said Chang Min, director general of the BOK's research department, said in an interview in Seoul. "We have calculated the depreciation of the yen when making projections in April, but the weakening of the larger-than-expected may affect exports."

 

In the last week, an official warned that Korea is increasing surveillance against the Japanese currency movements and the impact on earnings of exporters. As is known, Won has touched the peak level since 2008 against the yen in the last month. South Korean exports were pressed to the lowest level in more than 2 years.

 

Although the effect of currency exchange rate does not sekrusial in the past, given the number of companies that build factories overseas and produce more high-quality goods that dominate the market, they still have an impact, added Chang.

 

BOK lowered the economic growth forecast for this year to 3.1% from April's forecast of 3.4%. While the trimmed inflation projection to 0.9% from 1.9%. Chang said that the downward revision is the result of an assessment of a number of factors, such as lower oil prices and a decline in government spending eroded revenue

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News and Economic Review Zone Asia (China)

 

IMF Request More Flexible China Currency Policy Money

Thursday, May 7th, 2015

 

In addition to expressing his views on economic dynamics in Asia Pacific, the International Monetary Fund (IMF) in particular expressed his assessment of China. According to the savings and loan institution, the Chinese government should be more flexible in implementing its currency policy.

 

As is known, the Chinese government has a strict policy regarding exchange rate movements Yuan or Renminbi. They never let the exchange rate of its currency to strengthen because you want to take advantage of the revenue in the export sector. One way is to install the yuan parity against the US dollar every day so the price movements in the exchange rate market became apparent.

 

IMF worried that China's increasingly aggressive intervention in the currency market because the economy is slowing. The institute suggests Beijing to better focus on managing fiscal policy rather than taking advantage of the cheap exchange rate. The IMF itself is still optimistic China is able to record stable economic growth in the range of 6% in 2017. While for now the growth of gross domestic product (GDP) stood at 7% in the first quarter or the lowest percentage since the 2009 financial crisis.

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News and Economic Review Zone Asia (China)

 

Spur economic growth, China Back Lower Interest Rate

Monday, May 11, 2015

 

Continued slowdown in China perekonmian make People's Bank of China (PBOC) lowered the benchmark interest rate on Sunday, and begin effective from today. PBOC has lowered interest rates three times since November to spur the economy fell to its lowest level since the global financial crisis. China's own economy is projected to grow 7% this year, the projection was the lowest in the last 25 years.

 

PBOC lowered interest rates on loans and deposits of one year each by 25 basis points, to 5.1% and 2.25%. PBOC said the move will help the healthy economic growth. In addition to lowering interest rates, the PBOC also provide greater flexibility to commercial banks to provide one-year deposit interest rate to a maximum of 3.375%.

 

Until now, the Chinese central bank has lowered interest rates, and demand a minimum mandatory reserves five times in the last six months, economists still expect there will be further monetary easing due to weak property market and Letting growth in the manufacturing sector and investment.

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News and Economic Review Zone Asia (China)

 

China No Longer Smartphone Market Potential

Monday, May 11, 2015

 

Over the past two years, China lined up as the world's largest mobile market. But claims it is unlikely to last long because of the amount of demand for smartphones is reduced in early 2015.

 

According to the Wall Street Journal, China's market share does not have a lot of space to grow again due to demand of its citizens smartphone begins to saturate. The number of smartphones shipped to China fell 4.3% in the first quarter of 2015 compared to the same period last year. This decrease is the first time this has happened in the last 6 years, according to data compiled by International Data Corp. Separate survey did show that the smartphone market is still growing, but the growth rate is lower than ever before.

 

Technology analyst claims that the decline occurred because berkurangnnya first mobile phone users. Now the smartphone has an average penetration of less than 90% in China or means, all those who need a smartphone now really have it.

 

Therefore, the producers now have to be more astute in marketing their products with buyers targeting the consumer, who likes to change the mobile phone for at least 2 years. Usually they buy mobile phones if they see any more innovative product has not been damaged despite the length smartphone.

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News and Economic Review Zone Asia (China)

 

Despite its Current Account Surplus, Posture Balance China Not Balanced

Tuesday, May 12, 2015

 

China is scored surplus in the current account (current account), but at the same time the capital and financial account had a deficit in the initial quarter of 2015. The government claimed to be more astute in the post-expenditure balance and boost investment in the coming quarters ,

 

China recorded a current account surplus of $ 78.9 billion and a deficit of $ 78.9 billion capital account. Components of the capital account deficit is the calculation of inward investment, both short and long term, to the Chinese economic system. This means that foreign investors' interest in investment tends to be weak in the beginning of the year

 

China itself has already introduced a new method of calculation of the balance sheet according to the standard of the International Monetary Fund (IMF). The difference between the old and the new calculation method lies in the components of reserve assets. If the previous method of these assets is calculated separately, then in existence the new standard is part of the financial accounts.

 

In its annual report released this week, China's State Administration of Foreign Exchange (SAFE) explained that the inflows from the outside into the country will be improved in 2015 so predictable capital accounts improved posture.

 

SAFE in March revised the capital account deficit figures for the fourth quarter of 2014 from $ 91.2 billion to $ 30.5 billion. While the current account surplus, the trade component count, it was revised up from $ 61.1 billion to $ 67 billion.

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News and Economic Review Zone Asia (China)

 

China's Industrial Output Grows 5.9% in April

Wednesday, May 13, 2015

 

Results of industrial production (industrial output) rose 5.9% in the month of April compared to the same period in 2014. The increase is larger than the incision last March that only 5.6%.

 

According to the National Bureau of Statistics, China's industrial production growth rate was below the estimated 6.0% expressed by 12 economists in a survey by The Wall Street Journal. Meanwhile, if compared on a monthly basis, industrial output in April grew 0.57% or two times better than the percentage increase in the period from March to February which is only 0.25%.

 

Fixed asset investment (fixed-asset investment) in non-urban regions increased 12.0% over the same period last year. Economists itself forecast a rise of 13.5% in the first four months of 2015. The retail sales figures grew 10.0% in April compared to last year or slower than the rate of increase in March, which amounted to 10.2% and by 10 economists forecast , 6%. Whereas when compared with March 2015, China's retail sales grew 0, or better than the revised March were 0.64%

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News and Economic Review Zone Asia (China)

 

Moody's: There is a risk of Pruning Flowers Behind China

Thursday, May 14, 2015

 

Moody's Investors Service warned of the negative effects of monetary easing undertaken by the People's Bank of China's (PBOC) recently. Cut interest rates 3 times in the last six months is bad news for commercial banks there.

 

Lower interest rates made by the Central Bank of China will hurt the banks because it makes the difference between lending rates and deposit rates widened. "We expect the difference between credit and deposit interest rates will be narrowed from 2.10% to 1.95%," said Moody's. Estimated it refers to the assumption that the deposit rate will rise to 140% of the benchmark rate. The difference in the interest, will reduce the profitability of Chinese commercial banks.

 

PBOC did respond quickly signs of economic decline for several months terakhi. In addition to lower interest rates on deposits and loans by 25 basis points, the central bank also loosened restrictions on deposits of 130% to 150% of the benchmark rate. Another goal is to improve the competitiveness of banking products in the midst of the many alternative investments, stimulate interest on deposits and cash balances of banks. However, Moody's claimed this policy would hurt banks small and medium scale because they are more sensitive to changes in interest spreads on deposits.

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News and Economic Review Zone Asia (South Korea)

 

Bank of Korea Hold Interest Rates 1.75%

Friday, May 15, 2015

 

As expected the Bank of Korea kept interest rates to 1.75% at the monetary policy meeting today, said policy makers need to look further impact of lower interest rates two months earlier. South Korean domestic demand began to show an increase, but exports are still declining, and increased household debt.

 

Data from the BOK showed South Korea's gross domestic product rose 0.8% in the first quarter from a year earlier, while consumer sentiment last month rose to its highest level since October. BOK governor said the decline in exports to the attention of the central bank, though he will not lower interest rates simply to encourage the export level.

 

South Korean Finance Minister Choi Kyung Hwan, said last week the South Korean economy showed a gradual recovery in the first quarter, though not so strong. He added that the weakening of the Japanese yen exchange rate adversely affects the export of South Korea. South Korean export products become less competitive against Japanese products if the yen weakens

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News and Economic Review Zone Asia (Japan)

 

Japanese Core Machinery Orders Up in March

Monday, May 18, 2015

 

Japan's Cabinet Office reported Japan's core machinery orders rose 2.9% in March from the previous month, and higher than economists' forecast of 1.7%. The report signals into Japanese firms started to increase capital expenditure for future business development. But the Cabinet Office also revised percentages in February to -1.4% from -0.4% the initial release.

 

Core machinery orders are considered as a reference to see investasti capital of the company, but the high volatility of these data make it difficult to market participants infer if only to see the data in a month.

 

When compared to last year, orders rose 2.6%. While during the first quarter, orders rose 6.3% from the previous quarter. Though data for March is better than expected, but the Cabinet Office said for the second quarter of this year, machinery orders are likely to be down 7.4% from the first quarter.

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News and Economic Review Zone Asia (Japan)

 

This week attention is drawn to Japan

Monday, May 18, 2015

 

Japan will release some economic data as well as the monetary policy meeting of the Bank of Japan this week, so the attention of market participants will be drawn to the Land of the Rising Sun is.

 

Beginning the week, the Cabinet Office of Japan in earlier reports Japan's core machinery orders rose 2.9% in March from the previous month, and higher than economists' forecast of 1.7%. Although core machinery orders are considered as a reference to see investasti capital of the company, but the high volatility of these data make it difficult to market participants infer if only to see the data in a month.

 

While on Wednesday, the Cabinet Office will release data on gross domestic product (GDP) this year's first quarter. Economists surveyed by Reuters had forecast first-quarter Japanese GDP will grow 0.4% from the previous quarter, or 1.5% from the previous year. The predictions show the Japanese economy is on a moderate recovery path after a recession last year due to the increase in sales tax.

 

Bank of Japan (BOJ), which maintains monetary policy last month will hold a two-day meeting began on Thursday, and ends on Friday. In a meeting last month, the BOJ lowered its economic growth and inflation Japan. On Friday, BOJ Governor Haruhiko Kuroda, said he does not see a need to provide additional stimulus in the near future, and still optimistic inflation target will be achieved. Nevertheless, the release of Japanese GDP data on Wednesday could be the BOJ will change the view that the possibility of an impact on monetary policy are taken.

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News and Economic Review Zone Asia (Japan)

 

Nikkei Gains Three Days streak, Translucent Level 20,000

Tuesday, May 19, 2015

 

Japanese stocks, Nikkei, managed to rebound, to this day has risen in three consecutive days and closed above the 20,000 level. Wall Street higher on Monday as well as the back yen touched 120.00 per dollar level of positive sentiment to the market.

 

Wall Street rose with the S & P 500 and Dow Jones managed to close trading at record highs after Chicago Federal Reserve President Charles Evans who spoke in Stockholm, said inflation in the US is too low, and the purpose of the Fed should push inflation to the target of 2% to keep rates flower until early next year.

 

The focus of market participants are now focused on Japanese economic growth data will be released tomorrow morning Cabinet Office. Economists surveyed by Reuters had forecast first-quarter Japanese GDP will grow 0.4% from the previous quarter, or 1.5% from the previous year.

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News and Economic Review Zone Asia (Japan)

 

Japan Economic Growth Higher than Expectations

Wednesday, May 20, 2015

 

Japan's economic growth in the first quarter is higher than expected, helped by rising consumer spending and capital expenditures businessmen. Data released by the Cabinet Office showed gross domestic product (GDP) grew 0.6% first quarter from the previous quarter were up 0.4%. Percentage increase in the first quarter was higher than economists forecast of 0.4% while compared to the first quarter of 2014, GDP grew 2.4%, much higher than the increase of 1.1% in the previous quarter.

 

Consumer spending rose 0.4% higher than the estimate of 0.2%. The increase is a sign of the recovery of the sector, which last year hit by the increase in sales tax. Consumer spending sector is also a sector that has long wanted raised by the Japanese government. While capital spending rose 0.4%, the increase is the first in the last four quarters.

 

The report supports the projection of the Japanese government and the Bank of Japan is called the Japanese economy is on a recovery path. The BOJ will hold its monetary policy meeting on Thursday, and will end on Friday.

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News and Economic Review Zone Asia (China)

 

China Manufacturing activity is still shrinks

Thursday, May 21, 2015

 

HSBC's China manufacturing activity still showed contraction version this month. Despite showing modest improvement, but the manufacturing activity index has been below 50 in three consecutive months.

 

HSCB reported index of manufacturing activity in May it gained 49.1, up from 48.9 in April, but is still lower than economists' estimates of 49.4. A reading below 50 indicates contraction, while above 50 indicates expansion.

 

Details of the report showed a sub-index of new export orders fell to 46.8, the lowest level in 23 months. For output, contracted for the first time this year, and fell to a 13 month high of 48.4, while the employment sub-index showed manufacturing firms cut jobs in 19 months in a row.

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News and Economic Review Zone Asia (Japan)

 

The Bank of Japan Keep Monetary Policy

Friday, May 22, 2015

 

According to many estimates of the Bank of Japan kept monetary policy meeting today, besides the Japanese central bank also raised its outlook for the Japanese economy. Tersbeut meeting results confirm moderate growth in the Japanese economy, but inflation is still expected to near 0% in the short term due to falling energy prices.

 

Eight of the nine members of the board decided to maintain the monetary base amounted to ¥ 80 trillion, while one member, Takahide Kiuchi, again asked reducing the asset purchase program per year to ¥ 45 trillion. Kiuchi believes monetary base amounted to ¥ 80 trillion per year that can ultimately jeopardize the Japanese economy.

 

The BOJ raised its forecast for consumer spending, and investment properties, but lowered its forecast public investment remains. BOJ Governor Haruhiko Kuroda, the next is scheduled to hold a press conference.

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News and Economic Review Zone Asia (Iran)

 

Iran: Possible OPEC Output Cuts Will Not

Monday, May 25, 2015

 

OPEC unlikely to change its production ceiling during a meeting in June, according to Iranian Oil Minister Bijan Zanganeh on Sunday, as quoted by the Mehr news agency. According to him, cuts in OPEC production limits require the agreement of all members, and under these conditions seems to limit oil production OPEC will not change. Last month, seharisnya Zanganeh said OPEC cut its daily crude oil production target by at least 5%, or about 1.5 million barrels per day.

 

Organization of the Petroleum Exporting Countries will meet on June 5. At the last meeting in November, OPEC, led by Saudi Arabia, decided to reject the cuts output in order to maintain market share, rejected the proposal of some members like Iran and Venezuela to reduce production levels in order to mendongrak oil prices. The decline in oil prices has been pressing OPEC producer less affluent, including Iran. While meeting in Vienna on June 5 will be received requests from a number of member countries to cut oil output, although officials from countries who proposed trimming output pessimistic pruning will occur. Iran meniginginkan other OPEC members to allow the increase in the level of oil exports if it reached an agreement with six other world powers over its nuclear program. Deadline nuclear issue there is agreement on June 30.

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News and Economic Review Zone Asia (China)

 

China Index Stronger Thanks to the swift Fund Entrance

Tuesday, May 26, 2015

 

China shares extend gains today. Until the closing of the Tuesday session, the main Shanghai index was observed to rise thanks to large capital inflows.

 

Although the central government seeks to restrict the volume of speculative transactions in the capital market, investors are still buying stocks in Shanghai. The main index finishing the morning session at 4892.73 levels or higher by 1.6% compared to its opening position before finishing the day at 4,910.90 level, up about 2%. Shares of the aviation sector, defense and manufacturing led the Chinese market's gains. ChiNext soared 3.6% to 3592.91 position until mid-day and predicted ready to set new records.

 

In the morning, the market was hit by profit-taking. But amid inflows into the stock market, buying is inevitable, especially in some of your favorite stocks. There are no signs of the Chinese index will weaken in the short term

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News and Economic Review Zone Asia (China)

 

Use of Yuan Start Trading Dominant in China

Wednesday, May 27, 2015

 

The Chinese government's intention to make its currency as one of the most important trading currency world began to materialize. Yuan currency is now the most widely used in trade transactions with China, shifting the position of the yen and Hong Kong dollar.

 

Governments and enterprises in China is promoting the use of yuan as a medium of exchange in import export transactions. Now as much as 31% of payments trade cooperation wear Yuan, or much improved from just 7% in the past three years (data from the World Interbank Financial Telecommunication).

 

Along with the increase of direct cooperation with China and Hong Kong, Yuan is more often used as a unit of exchange. The Chinese government diligently to facilitate the use of its currency by opening the clearing center around the world, signed a currency swap agreement and set a quota of foreign investment.

 

For the last month alone, Yuan became the most widely used currency in Canada's trade balance with China and Hong Kong. To accommodate the magnitude of the transaction between the two regions, China to build four new clearing center in order to facilitate the transaction. In addition to Canada, Yuan controls 50% payment of import export between China and Singapore, Taiwan, South Korea and the Philippines.

 

Since 2012, as many as 26 countries already use yuan as the currency of payment directly to China and Hong Kong. But globally, the currency is still in fifth position in the list of the most commonly used currencies in payments ********* with a percentage of only 2%

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News and Economic Review Zone Asia (Japan)

 

BOJ Iwata: Yen Movements Reflect Fundamentals

Wednesday, May 27, 2015

 

Deputy governor of the Bank of Japan Kikuo Iwata on Wednesday said that the exchange rate is moving in line with economic fundamentals. He said that the Bank of Japan will continue to monitor how the movement of the currency market, including exchange rates, will affect the economy. But he refused to bekomentar specifically about the weakening yen towards the 8-year lows against the dollar due to the strengthening of speculation rising interest rates in the US lately. Currently the yen is still traded in the range of 133.00 per dollar.

 

Meanwhile, one of Japan's top government spokesman said on Wednesday that excessive volatility in exchange rates is not expected, but added that the pace of the weakening yen is still not excessive. The deputy head of the cabinet secretariat Yoshihide Suga said that pemeirntah will continue to monitor the movement of currency exchange rates carefully.

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News and Economic Review Zone Asia (South Korea)

 

Won Drops to 8-Week Low Level

Thursday, May 28, 2015

 

The won dropped to 8-week low amid signs the rate of growth rate of exports and South Korea slowed as the worsening global conditions. Exporters can not sustain kompetitifitas amid weakening yen and the euro, according to the Korea International Trade Association report released Thursday. This happened after the Bank of Korea Governor Lee Ju Yeol on Tuesday said that exports may be down in May. HSBC Holdings Plc said there was a decrease in the level of demand for Korean products by China as an excuse to cut its 2015 growth forecast this week to 2.8% from 3.1%.

 

According to one analyst currencies, weak demand from abroad reduce the level of exports this year and the impact of changes in currency exchange rates also play a role. The Government will continue to try and maintain order not won strengthened against the yen.

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News and Economic Review Zone Asia (Japan)

 

Japan Inflation Flat in April, Consumer Spending Down

Friday, May 29, 2015

 

Japan's core consumer inflation rate only increased slightly and the level of public spending fell in the year to April, fueling doubts about the central bank's view that there is a stable economic recovery that could help mengakselarasi rate of inflation to the target of 2%. 0.3% rise in the consumer price index (CPI), in addition to oil and fresh food products, roughly in line with market estimates for a gain of 0.2%. Outside residual impact of the sales tax increase last year, core CPI flat in April from a year ago. Analysts expect consumer inflation will remain flat or down slightly at an annual rate of up to around July or August, due to the impact of the decline in gasoline prices last year.

 

Contributed to the economic outlook for the country's third-largest economy in the world, the level of public spending fell by 1.3% in April from a year earlier, far worse than expectations for an increase of 3.1%. Bank of Japan Governor Haruhiko Kuroda has stressed that he will monitor the impact of oil price movements on inflation and would consider returning policy loosening is also the risk factors threaten to hamper gai rise gradually due to the economic recovery as planned. However most senior central bank officials worry that if the rate of inflation to remain low for a long time, it can suppress inflation expectations and make consumers reluctant to shop.

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News and Economic Review Zone Asia (Japan)

 

Japanese Manufacturing sector Back Expanding

Monday, June 1st, 2015

 

Japanese manufacturing activity expanded in May for the first time in two months as the level of domestic orders and output increased, signaling the economy will probably continue to recover post hampered in April. Japanese manufacturing sector PMI by Markit / JMMA rose to 50.09 in May, unchanged from the previous result but improved from 49.9 in April. Index back to the top level of 50 that separates contraction and expansion for the first time in 2 months.

 

An advanced level of new orders rose 50.9, compared to the previous estimate of 51.2 and the results in April at 48.8. Output index rose to 51.9 slightly higher than the previous estimate at 51.7 and 49.3 in April. The index for new export orders was at 50.6, slightly higher than the previous estimate at 50.2 and 50.3 in the previous month. Expansion in the manufacturing sector is important for the economy because it is a signal of strong domestic demand, which will push up the growth rate and the Bank of Japan is likely to create more beasr in achieving the inflation target of 2%.

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News and Economic Review Zone Asia (China)

 

China Manufacturing Sector Stimulus Not Responding

Tuesday, June 2nd, 2015

 

China's manufacturing sector showed little progress signals in the month of May as the level of demand is still weak, while the level of exports in South Korea scored its biggest annual decline since the financial crisis, poor results which will lead to proposals for additional stimulus measures. However, the Japanese manufacturing sector achieve an increase in the level of new orders while the manufacturing sector of India achieve the level of domestic demand is solid, giving hope for the region to recover in the second quarter. Meanwhile, data on Monday showed the level of South Korea's exports in May scored the biggest annual decline in almost six years, with a decrease in the level of sales towards all major market share yaotu China, the US and the European Union. Survey South Korean manufacturing sector PMI also came back down for a third month in May to 47.8, its lowest level since August 2013, from 48.8 in April. The focus now will shift to the United States and some parts of Europe, which is expected to achieve a more robust factory activity to dampen the impact of the global slowdown on China.

 

China on Monday reported the official PMI of manufacturing sector rose to 50.2 in May, from 50.1 in April and re-enters the expansion area. But the results of a private survey on small and medium-sized companies showed activity in the manufacturing sector contracted for a third month in a row. Manufacturing sector PMI by HSBC / Markit is at 49.2. Both indexes are near the 50 level that separates contraction and expansion, the manufacturing sector showed limited activity. And both indices indicate contraction in export orders making factories reduce more workers. A separate survey showed the rate perumbuhan services industry in China slowed in May, with the non-manufacturing PMI fell to 53.2 from 53.4.

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News and Economic Review Zone Asia (China)

 

China's PMI Services Sector Increase to 53.5

Wednesday, June 3rd, 2015

 

China's pace of service sector activity accelerated in May as the level of new business grew by the fastest pace in three years, according to the survey results Wednesday, a surprise good news for the government which is trying to revive a slowing economy. However, economists are still worried about the outlook for China's economy as a whole, in line with the pace of loan growth remains weak and stagnant manufacturing sector, reinforcing the view that pemeirntah will have to pour more stimulus again to avoid a sharper slowdown.

 

China's services sector PMI by HSBC / Markit separately in May was at 53.5, up from 52.9 in April, and is well above the 50 level that separates contraction and expansion. May data showed acceleration for 4 months in a row. Index sub-component of the new business is at 54.4, up from 52.8 in April and the highest level since 54.7 in May 2012. The level of employment in service companies grew at the fastest pace since January 2013, according to the survey, a bright signal for pemeirntah line dismissal continues on the manufacturing sector, which usually becomes absorbing labor in China. According to one economist at Markit, in kesleuruhan momentum of growth was relatively weak, weighed down by weakness in the manufacturing sector operating conditions. Therefore, it may take additional stimulus measures to make the government remains on track towards the target GDP growth of 7%, he added.

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News and Economic Review Zone Asia (Japan)

 

BOJ Harada: Yen Being in the "Level The Pretty Good"

Thursday, June 4th, 2015

 

A weaker yen means currency lately is the "good level," according to a new board member Bank of Japan, Yutaka Harada, according to Bloomberg, indicating a slight inconvenience to the weakening yen hit a low of 12-1 / 2-year this week. Overall, the positive impact of a weaker yen exceeded the negative impact due to raise corporate earnings, the level of exports, and help create jobs, Harada said in an interview with Bloomberg. If we look at the progress on kompetitifitas in various industries, then we can conclude that the yen is at a place that is quite appropriate, Price said about the weakening yen, as quoted by Bloomberg.

 

Dollardiperdagangkan in the range of 124.26 yen, not far from the high level of 12-1 / 2-year at 125.07 reached last Tuesday. The yen has weakened about 37% against the dollar since late 2012 when Prime Minister Shinzo Abe took office with a promise to end the burden of currency gains on Japanese exporters. One other reason for a weaker yen is a quantitative easing program launched by the BOJ, which aims to boost the rate of inflation by buying government bonds in large quantities. The BOJ has repeatedly said that monetary policy is not aimed at weakening the yen, but some economists worry that if the yen weakens too sharp then it can cause friction in trade or hurt consumer sentiment to inflate the price of imports. Harada BOJ reiterated the view that the rate of consumer prices is likely to achieve the inflation target of 2% around the first half of fiscal 2016, and further policy easing is not needed as long as the mechanism for price increases is still valid, according to Bloomberg. Harada joined the BOJ board members in March for a term of 5 years.

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News and Economic Review Zone Asia (Japan)

 

Japan's economy Growing Faster Than Initial Estimate in Q1

Monday, June 8, 2015

 

Japan's economy grew at a faster rate than the initial estimate in the first quarter, the strong rise in business investment and an increase in inventory.

 

Japan's gross domestic growth expanded at an annual rate of 3.9%, greater than the initial forecast for a reading of 2.4%, according to revised data from the Cabinet Office. The median estimate of 26 economists surveyed by Bloomberg for a reading of 2.8% increase.

 

One economist at NLI Research Insutitute said that the Japanese economy is currently in a recovery path. Bank of Japan should be relieved by this report, because it sinyalkan that they do not need to do more.

 

Prime Minister Shinzo Abe pushed Japan Inc. to cultivate greater than hoard their cash and make money into the economy which is facing a shrinking population and an increase in the amount of debt. Investments remained below 2008 levels, consumer spending is still burdened by a sales tax increase last year and the high inventory risk injuring quarter growth now.