JGBs Fall After BOJ Tankan Shows Higher Inflation Forecasts -- Market Talk
The Nikkei/Yen in Japan plummeted, following the trend of the US stock market on Friday.
On Monday, Japan's Nikkei average index fell significantly amid a sell-off, following a sharp decline on Wall Street from the previous trading day, as investors expressed concerns about the slowdown in the USA economy. Last Friday, the US stock market closed sharply lower, with technology giants like Amazon and Microsoft facing selling pressure.
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Japanese bonds have fallen to their lowest point since 2009! The Governor of the Bank of Japan reiterates the determination to 'reduce the balance sheet' and holds an optimistic view on salary prospects.
Kazuo Ueda stated, "From now on, we may see inflation easing driven by import costs, while wages will continue to rise steadily. Therefore, we expect real wages and Consumer spending to improve in the future." The Bank of Japan has also begun to implement an Algo tightening plan, with the monthly purchase of Bonds expected to be halved to 3 trillion yen by early 2026.