Uda-san touches on the following subjects:
• Key growth areas for the Japanese economy in the next 2 to 5 years.
• Where he sees value in the short and long term.
• Will consumption tax have a negative effect on the Japanese market?
• What effect will the tightening of the Monetary Policy have on the Japanese economy?
• What levels will the market reach in the coming years?
Topics discussed include:
• Japanese Inbound Tourism
• Infrastructure Demand
• Labour Shortage
• Capital Expenditure
• Consumption Tax
• Japanese Monetary Policy
• Interest Rates & Inflation
During the first half of July, the Japanese market declined on the back of concerns over trade frictions and the weakness of the Chinese market. This said, the market later started to recover following strong economic growth in the US and a depreciating JPY against the US dollar, as well as decreasing tensions surrounding trade frictions and fiscal policy announcements in China.
In July, the trade war between the US and China escalated, resulting in the CNY falling to a 12mth low. During the month, the EU finalised a trade agreement with the US. At the same time, Turkey’s central bank refrained from raising rates, spreading risk concerns to Emerging Markets.