Rolling coverage of the latest economic and financial news
Thomas Mathews, head of markets, Asia Pacific, at Capital Economics, has predicted that “calm may be on the way for Japan’s markets now the election is out of the way”.
Mathews doesn’t expect a further sell-off in Japanese government bonds (JGBs) and also forecasts a stronger yen, saying:
Japan’s debt position is actually on a better trajectory than many other countries’. And with the election now out of the way, it’s not obvious to us that Takaichi actually will deliver significant extra fiscal stimulus.
Takaichi’s election bet has paid off, and she now has a clear mandate to pursue her agenda, which could have market ramifications. All eyes are on the bond market.
Takaichi, like Andy Burnham, is not in hock to the bond market. She has threatened to cut taxes and boost spending even though Japan’s debt to GDP ratio is 250%.
Continue reading…Rolling coverage of the latest economic and financial newsSanae Takaichi’s conservatives cement power in landslide Japan election winThomas Mathews, head of markets, Asia Pacific, at Capital Economics, has predicted that “calm may be on the way for Japan’s markets now the election is out of the way”.Mathews doesn’t expect a further sell-off in Japanese government bonds (JGBs) and also forecasts a stronger yen, saying:Japan’s debt position is actually on a better trajectory than many other countries’. And with the election now out of the way, it’s not obvious to us that Takaichi actually will deliver significant extra fiscal stimulus.Takaichi’s election bet has paid off, and she now has a clear mandate to pursue her agenda, which could have market ramifications. All eyes are on the bond market.Takaichi, like Andy Burnham, is not in hock to the bond market. She has threatened to cut taxes and boost spending even though Japan’s debt to GDP ratio is 250%. Continue reading…