Japan is where it was pre-Abenomics - Rabobank

Michael Every, Head of Financial Markets Reseach at Rabobank, suggests that in Japan, on we have twin headlines that ‘Kuroda Tweaks Leave Japan Markets Vulnerable Before Abe Stimulus’ and ‘Abe’s Fiscal Stimulus Plan Follows a Long Road of Packages That Failed’ – ouch!

Key Quotes

“In other words, the BoJ only played with policy at the margin by boosting USD lending and ETF purchases a little, even as they admitted rising risks that they won’t meet their 2% CPI target (current reading: -0.4% y-o-y) and will reassess policy ahead.

At the same time, what looked like a ‘big bang’ fiscal stimulus is now more a small fizz. Clearly this was also not the reason for equity exuberance, especially with JPY testing 102 on Friday. In short, Japan is still basically where it was pre-Abenomics, only more so.”