Asian Stocks Up this Morning as Japan Sales Tax Increase is Postponed
Figures out of Asia this morning shown a rise in its shares led by Japanese shares, following the yen’s trading close to a seven year low. There is also a decline in Asian bonds with expectations that Japan will postpone the sales tax increase till after elections.
There has been a 0.3 percent rise in the Asian Pacific Index in early morning trade today tracking a four day straight rise. A rise in stocks markets in the region has been accompanied by a fall in bond performance following a fall in the currencies. The Japanese yen has fallen to its lowest level since 2007 pulling down bond yields.
According to analyst, among Asian markets- the Japanese equities are favoured as a result of the announcement of additional stimulus by the bank of Japan and a postponement in the sales tax increase implementation till after elections
In South Africa- economic data on retail sales will weigh on the markets today in addition to news that five South African banks were downgraded by rating agency Moody’s yesterday. There has also been downgrades in the already capacity and resources constrained power agency Eskom. Despite further government guarantees- the woes of Eskom are far from over and this continues to affect the economy and markets in South Africa.
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