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Tokyo placid despite bitter electoral:
Tokyo (AWP/AFP) – The Tokyo Stock Exchange climbs slightly on Tuesday. Therefore, reassured for the time being by the will of the Japanese Prime Minister Ishiba to stay in power despite a stinging defeat in senatorial elections, the yen being haunted by speculation on Japanese budget.
Tokyo resists, the yen is backwards, Ishiba clings
Around 02:00 GMT on the Tokyo Stock Exchange, the Nikkei star index climbed 0.27% to 39,927 points, and the broader index Topix gained 0.23% at 2.841 points.
Nexther a day after a holiday Monday. Therefore, the tokyoist square resists despite the debacle suffered Sunday by the government coalition during elections to the upper room of the Parliament.
The Liberal Democratic Party (PLD. In addition, Conservative right) of Prime Minister Shigeru Ishiba and his ally Komeito (center-right) lost their majority there, while they were already in the minority in the lower chamber. tokyo placid despite bitter electoral Furthermore, Under strong pressure, Mr. Moreover, Ishiba, however, excluded to resign immediately, which seemed to reassure investors for the time being.
“Japan returns from its holiday Monday with a political wood mouth: Ishiba clings to power. Similarly, but if it offers a semblance of continuity, it is fragile,” warns Stephen Innes, of Spi Asset Management.
“The first reaction resulted in a strong increase in Yen on Monday. more by reflex to outcome weekend positions than out of conviction,” he notes, but the currency was already under pressure again on Tuesday: it ceded 0.14% to 147.59 yen for a dollar around 2:00 GMT.
However. the financial markets are worried about budgetary drifts in the face of the massive promises of aid from the Ishiba government and the opposition forces, likely to worsen already heavy debt. Sign of distrust, the rates of Japanese sovereign bonds have recently flew.
“The opposition parties could try to put pressure tokyo placid despite bitter electoral by advocating a softening of budgetary policy against inflation. a perspective which already weighed on the rates of the Japanese debt before the elections”, observes Chris Turner, of the Bank ING.
“It seems negative for the yen. In addition. if Ishiba is forced to resign, he may be replaced by a personality demanding that the Bank of Japan slows down its rate increases”, again enough to put pressure on the Japanese currency, he adds.
“Increased pressure on the budgetary situation. in particular opposition calls to a drop in VAT, could weigh on bond yields,” confirms Michael Wan, of MUFG.
Mr. Ishiba intends to stay in office to try to complete cruising commercial negotiations with Washington before the August 1st. Butory date of the entry of US customs from 25% targeting Japanese exports.
“But any sign of failure. such as the impossibility of obtaining concessions, could accelerate the selection of a new leader within the tokyo placid despite bitter electoral PLD,” said Michael Wan.
Febrile scholarships. Trump’s shadow
Elsewhere in Asia, the scholarships were feverish and without much direction, suspended from the evolution of commercial negotiations with the United States while the countdown began by the entry into force expected on August 1 of generalized American customs surcharge.
Around 02:00 GMT, the Hong Kong Hang Seng index earned 0.20%, the Seoul Stock Exchange ceded 0.30%, Sydney increased by 0.14%and Taipei by 0.21%.
“This is the subject on everyone’s lips (…) The markets have already passed through a similar scenario. with muscular speech, extensions of deadlines at the last minute and continuation of negotiations”, recalls Stephen Innes, of SPI AM.
“But this time, Trump does not bluff. He has already announced that+no extension will be granted+”. and if the massive rates planned for Canada, Brazil, the EU and number of Asian savings “are applied, there will be no smooth landing,” he warned.
In the immediate future. the tokyo placid despite bitter electoral good health of Wall Street, which rose to new records on Monday, seemed to reassure investors. Which tended to abandon the refuge values: gold fell 0.29% to 3.387 dollars an ounce in Asia.
Oil withdrawal
The oil market was digging its losses on Tuesday. still weighted by commercial uncertainties and the solidity of global demand.
Around 02:00 GMT, the barrel of American WTI fell 0.74% to 66.70 dollars and that of Brent from the North Sea from 0.85% to 68.63 dollars.
Jug/VGU
Tokyo placid despite bitter electoral
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