Following a historic decision by the Bank of Japan (BOJ) to exit negative interest rates, foreign investors have been significant buyers of Japanese bonds for three consecutive weeks. This move comes amid a broader context of inflation signals from the United States, Australia, and Japan, and follows a series of central bank meetings that included the BOJ's rate hike. The rate hike, the first since 2007, has been seen as a positive step, but it also highlights ongoing structural challenges such as demographics, weak consumption, and high national debt. Despite these challenges and the immediate impacts of the policy shift taking time to manifest, Japanese stocks have surged to a fresh all-time high, with the Nikkei 225 crossing 41,000 intraday. This indicates a strong market reaction to the BOJ's policy changes, even as the real interest rate in Japan remains deeply negative.
In a remarkable turn, Japan has switched up its monetary policy. There is a sense that change is here to stay. But if you take a closer look, all is not as it seems https://t.co/KlxDctKlXe 👇
Japan real interest rate still deeply negative after first rate hike since 2007 https://t.co/rXAhazyo8h
Not even an interest rate hike for the first time since 2007 has slowed the record-breaking surge in Japanese shares. https://t.co/MTB8OEdMnb
Market Alert | ASIA: Japan’s Nikkei 225 crossed 41,000 intraday to hit a fresh all-time high on Friday https://t.co/XkH4VBNyct
Market Alert | ASIA: Japan hits a fresh all-time high on Friday https://t.co/0KsqryidFt
Not even an interest-rate hike for the first time since 2007 has slowed the record-breaking surge in Japanese shares https://t.co/UzG8RsHc7e
Japanese Stocks closed the week at a fresh all-time high. Hiking rates can't even slow that market down! https://t.co/T7sJR8LkOI
On topic: What lies ahead for Japan after BOJ policy shift? https://t.co/Iyb5pqn3Ng
⚠️ ANALYSIS-BOJ PIVOT NO FRIGHT FOR EURO ZONE BONDS Full Story → https://t.co/cDnM19YICy Japanese investors are finally being paid to park their cash back home, a move that might be expected to spook euro zone markets where they're a big force but could ironically prop up… https://t.co/KL8EgjBdfl
"Shifts in Japanese monetary policy – even if widely telegraphed – are of global interest. There are always fears that Japanese investors will lose interest in foreign paper," writes @Brad_Setser. https://t.co/Lgk6cjH5xY
Japan braces for life with interest rates after historic change - Reuters https://t.co/J1JaQqEZny
⚠️ BOJ LAYS OUT NEED TO BEEF UP RESEARCH, ANALYSIS IN 5-YEAR STRATEGIC PLAN Full Story → https://t.co/Irw3h5q2Vy The Bank of Japan on Friday highlighted the need to enhance its research and analytical capabilities in the first medium-term strategic plan compiled under… https://t.co/MydObq9sh7
As the dust settles from the Bank of Japan’s historic change to its monetary policy on Tuesday, the immediate impacts may take time to manifest for the average person in Japan. https://t.co/ZLTXq8M3Lm
Editorial: While the Bank of Japan's rate hike is seen as a positive step, structural issues such as demographics, weak consumption and high national debt continue to pose significant challenges. https://t.co/MEWOzif6DG
⚠️ TAKE FIVE: AND SO THE CYCLE TURNS Full Story → https://t.co/eB1PfeqKVa Inflation signals from the United States, Australia and Japan should be in focus in the coming days following a deluge of central bank meetings that included a historic Bank of Japan rate hike. https://t.co/aS3JOj7GT4
⚠️ FOREIGNERS BIG BUYERS OF JAPANESE BONDS AHEAD OF BOJ DECISION Full Story → https://t.co/JP9EjcVaWf Foreign investors continued to accumulate Japanese bonds for the third straight week ahead of a pivotal move by the Bank of Japan (BOJ) to exit negative interest rates after… https://t.co/cE7VAVeCqa