Forex - NZD/JPY, USD/JPY Flows: PM Abe: wants large firms to pass on benefits of weak JPY to smaller firms; sales tax hit hit GDP; Shiozaki: GPIF needs reforms as soon as possible


Published at 03:21 (GMT) 03 Oct

 

NZD/JPY, USD/JPY Flows: PM Abe: wants large firms to pass on benefits of weak JPY to smaller firms; sales tax hit hit GDP; Shiozaki: GPIF needs reforms as soon as possible (WFIC7501)

PM Shinzo Abe says critical Japan support smaller companies coping with weak JPY. Want large companies pass on weak JPY benefits to small companies. Large companies and exporters see big profit gains from weak JPY.

True to April sales tax hike led to 7.1% GDP contraction in April-Jun. Must scrutinise impact of bad summer weather, rising fuel costs on economy before decision on second sales tax hike. Will look at Q3 GDP and other data before deciding on extra budget.

Health Minister Hirohisa Shiozaki says GPIF portfolio needs reforms as soon as possible.

On FX, good to note PM Abe comments on weak JPY impact on small firms. Whether further weak JPY is negative for Japan economy. USD/JPY at 108.83-85, offers 109.00, off the 6-year highs of 110.08-09 seen. Bids at 108.50 now after dip to 2-week lows of 108.01.

NZD/JPY at 85.60-65, after volatile session on Thursday. With the NZD led squeeze, up from 84.75-80 all the way up to 86 handle. Offers at 86.00-10, bids at 85.00-20. WL

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