17 Jul 2014
Renewed focus on Japan - Goldman Sachs
FXStreet (Łódź) - Dominic Wilson from Goldman Sachs observes that after the intensity of last year, disappointing asset performance has reduced the focus on Japan for many macro investors in recent months.
Key quotes
"Both Japanese equities and the JPY are currently at levels that were seen not long after the BOJ’s shift to QE in April 2013."
"Even by the benchmark of low asset volatility in many places, the stability of the JPY since late January has been remarkable."
"The second half of the year has a better chance of bringing fresh focus."
"After the sharp drop in activity from the consumption tax hike, the cyclical picture should look somewhat better, helped also by a stronger picture in the US and China."
"As the recent inflation acceleration peaks and recedes, pressure on the BOJ to take fresh action is likely to resume."
"And the impact of the Abe administration’s reform announcements may become more visible."
"Despite the frustrations of the last year, we expect a resumption of more positive trends in equities and $/JPY."
Key quotes
"Both Japanese equities and the JPY are currently at levels that were seen not long after the BOJ’s shift to QE in April 2013."
"Even by the benchmark of low asset volatility in many places, the stability of the JPY since late January has been remarkable."
"The second half of the year has a better chance of bringing fresh focus."
"After the sharp drop in activity from the consumption tax hike, the cyclical picture should look somewhat better, helped also by a stronger picture in the US and China."
"As the recent inflation acceleration peaks and recedes, pressure on the BOJ to take fresh action is likely to resume."
"And the impact of the Abe administration’s reform announcements may become more visible."
"Despite the frustrations of the last year, we expect a resumption of more positive trends in equities and $/JPY."