Japan’s equity markets continue to rise on signs of economic recovery and expectations for US fiscal stimulus. The benchmark equity index Nikkei 225 rose to 30,000 early Monday to hit the highest level since 1190. The index has gained 8% so far this year, having rallied by 16% in 2020.
Global stock markets have rallied to record highs over the past 12 months, mostly on account of the monetary and fiscal stimulus measures adopted by authorities to counter the coronavirus-induced slowdown.
Japan’s GDP can be stronger as Japan’s fourth-quarter (Q4) GDP data crossed the 2.3% forecast with 3.0%, the data lagged behind the market consensus of 1.0% forecast on the YoY basis with a 0.2% mark. Also, these preliminary readings are below the previous announcements.
After the GDP release, Japan’s Economy Minister Yasutoshi Nishimura said that the economy is still below its pre-pandemic level. The Japanese diplomat also highlighted the need to pay close attention to the downside risks to the economy. The sentiment gets impacted with the hopes of a covid relief package.
Moving ahead, Japan’s December month Industrial Production, expected to remain unchanged near -3.2%, this might create a negligible impact on the yen.
On the other hand, President Joe Biden is about to hold his first event with other leaders from the Group of Seven nations in a virtual meeting on Friday to discuss the coronavirus pandemic, the world economy, and dealing with China, the White House said on Sunday.
“This virtual engagement with leaders of the world’s leading democratic market economies will provide an opportunity for President Biden to discuss plans to defeat the COVID-19 pandemic, and rebuild the global economy,” the White House said in a statement.
Domestically, Biden is pressing Congress to pass a $1.9 trillion stimulus package to boost the U.S. economy and provide relief for those suffering from the pandemic.
USD/JPY 4 Hour Chart:
Latest
Popular
Trending
Archives
Search
Top Tags