Japan Macro Hour
Policy Matters for Markets
To Do List:
1. Equities: Shift to exporters, away from domestics.
2. JGBs: Buy the middle of the curve.
Japan Economy: Mixed Bag of Indicators
Good news on industrial production
Bad news on labor market and prices
Bank of Japan: Foot off the accelerator
Current balances have stopped rising
Credit DIs easier but loan demand down
Japan Equities: Reacting to BOJ
Fear of premature BoJ tightening
Japan passing by foreigners
DPJ Government: Manifesto Analysis
Pro-and Anti-efficiency elements
Omissions question growth strategy
Now in complacency phase of CRIC cycle
JGBs: Buy the middle
No extra supply, even with DPJ government
Bank cash may spill into middle of the curve