Japan, trade deal
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Stocks Keep Streak of Records
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Asian shares mostly fall on Tuesday, with Japan and Hong Kong leading the downturn. Investors adopted a cautious stance as a looming U.S. tariff deadline approaches, and major central bank decisions from both the Bank of Japan and the Federal Reserve are anticipated this week.
When Japanese ice pop maker Akagi Nyugyo raised its prices a meagre 10 yen in 2016, its sombre-faced management appeared in a one-minute commercial, bowing silently in apology as a melancholy folk song lamented the inevitability of price hikes.
US stocks were mixed Monday and the S&P 500 eked out a record high for the sixth day in a row as investors digested the announcement of a trade deal between Washington and Brussels.
The Bank of Japan is expected to leave its short-term interest rate unchanged at a two-day policy meeting that ends on Thursday.
Bank of Japan officials see the possibility of mulling another interest rate hike this year after the US and Japan struck a trade deal this week, according to people familiar with the matter.
USD/JPY retreats as BoJ rate hike bets resurface after a US-Japan trade deal. BoJ, Fed decisions, and key data could set near-term forex trends.
Bank of Japan Deputy Governor Shinichi Uchida said risks to economic activity and prices were skewed to the downside due to "extremely high" uncertainty over trade policy, signalling that the central bank was in no rush to resume interest rate hikes.
TOKYO, - Japan's two-year government bonds rose on Tuesday after a strong auction outcome, as the market viewed the current yield level as attractive given the uncertainties regarding the Bank of Japan's rate hike path. The two-year JGB yield fell 2 basis points to 0.82%. Yields move inversely to bond prices.
Mr Uchida’s remarks came hours after US President Donald Trump said that he has struck a “massive” trade deal with Japan. Read more at straitstimes.com. Read more at straitstimes.com.
The dollar will retain its supremacy as a key global currency but "cracks" appearing in its status will prod investors to continue diversifying into other currencies, said former Bank of Japan Deputy Governor Hiroshi Nakaso.