4 hours ago
Yields on 10-year Japanese government bonds at highest levels in almost 9 years
yields for 10-year Japanese government bonds stood at 0.539% after the Bank of Japan announced an adjustment in its stance for its yield curve control policy.
This is the first time the 10-year JGB yields have reached this level since September 2014.
The BOJ said it would still allow yields to fluctuate in the range of around plus and minus 0.5%, but “will conduct yield curve control with greater flexibility, considering the upper and lower limits of the range as references, not as rigid limits, in their market operations”.
Separately, Japan’s central bank kept its benchmark policy rate at -0.1%.
—Lim Hui Jie
8 hours ago
Yen Strengthens After Bank of Japan Reports Allow Long-Term Rates to Break Above 0.5%
The Japanese yen has strengthened 0.38% against the dollar to trade at 138.95 after a report that the Bank of Japan will discuss modifying its yield curve control policy.
Nikkei has learned that the BOJ will allow long-term interest rates to rise beyond its 0.5% cap “to some degree.”
Under its yield curve control policy, the central bank targets short-term interest rates at -0.1% and the 10-year government bond yield at 0.5% above or below. below zero.
“The proposed change would maintain the rate cap, but allow moderate increases beyond that level,” the Nikkei added.
—Lim Hui Jie
3 hours ago
China’s Ministry of Housing is getting “bolder” on real estate support
The Ministry of Housing of China has announced plans to make it easier for people to buy property.
“It seems to us that (the Housing Ministry) responds quickly this time and also becomes bolder in relaxing property policies,” Jizhou Dong, a China property research analyst at Nomura, said in a note on Friday.
Hong Kong-listed Chinese property shares such as Longfor, Country Garden and Greentown China traded higher on Friday, on track to end the week with gains after falling on Monday on debt concerns.
However, the markets are still awaiting details on the local implementation. China has also not yet announced formal measures to support the real estate sector.
—Evelyn Cheng
7 hours ago
Tokyo’s inflation rate rises to 3.2% in July
The consumer price index in the capital of Japan, Tokyo increased 3.2% year-on-year in July, slightly higher than the 3.1% registered in the previous month.
This is the 14th consecutive month that the inflation rate in the capital has exceeded the Bank of Japan’s 2% target.
Core inflation in Tokyo – which excludes fresh food prices – came in at 3%, slightly higher than the 2.9% expected by economies surveyed by Reuters, but lower than the 3.2% in June.
—Lim Hui Jie
9 hours ago
What to expect from Friday’s PCE inflation data
June data for the Personal Consumption Expenditures Price Index will be released on Friday morning. The Federal Reserve closely monitors this indicator of inflation.
Economists surveyed by Dow Jones expect core PCE to rise 0.2% from the prior month and 4.2% from the prior 12 months.
—Alex Harring
10 hours ago
Stocks remain on track for a winning week
Thursday’s drop was not enough to erase the weekly gains, though they are marginal. With only the Friday session remaining in the trading week, this is where the three major indices meet:
—Alex Harring
10 hours ago
See the stocks making the biggest moves after hours
Here are some of the stocks making the biggest after-hours moves:
- Intel — Technology stocks rose 8% as investors cheered a return to profitability and better than expected guidance.
- Ford — The automaker fell 1% after increased year-round guidance and exceeding expectations for the second quarter.
- Year — The streamer added 8.5% after a better-than-expected quarterly report.
—Alex Harring