[B]Intra-Day Market Moving News and Views
15 Jan 2015 [/B] [I]00:53 GMT[/I]
[B]USD/JPY[/B] ...... The dlr continued its o/n gain in Asia on lower-than-expected Japan's core machinery orders and rebound in the Nikkei.
Reuters reported Japan’s core machinery orders rose less than expected in Nov due to declining orders in the manufacturing sector, suggesting companies are still cautious about capital expenditure due to worries about domestic demand.
Compared with a year earlier, core orders, a highly volatile data series regarded as an indicator of capital spending in the coming 6 to 9 months, tumbled 14.6%. The median estimate was for a 5.8% annual decline.
The Cabinet Office lowered its assessment of machinery orders, saying the recovery is showing signs of stalling. If business investment remains weak, more economists could start to question Abe’s argument that his policies are leading to a revival of Japan’s hollowed-out manufacturing sector.
The 1.3% rise in core orders, which exclude those of ships and electric power utilities, compared with a 5.0% rise forecast by economists in a Reuters poll. It followed a 6.4% decline in Oct.
Reuters reported BoJ Governor Haruhiko Kuroda said on Thur the economy is recovering moderately as a trend with the pain from a sales tax hike in Apr subsiding.
“The BOJ will maintain its quantitative n qualitative easing for as long as needed to achieve and stably maintain 2% inflation,” Kuroda said in a speech at a quarterly meeting of the bank’s regional branch managers.
The BOJ has kept monetary policy steady since expanding its massive stimulus programme in Oct last year, a move aimed at preventing weak demand n slumping oil prices fm delaying an end to deflation.
“Japan’s economy continues to recover moderately as a trend; BOJ’s QQE programme exerting its intended effects on economy; BOJ will maintain QQE for as long as necessary to stably achieve 2% inflation; BOJ will adjust policy as needed, looking at upside, downside risks to economy, prices.”
[B]Thursday[/B] will see the release of Japan’s Corp Goods Price and Machinery Orders, U.K.'s RICS Housing Survey, Australia’s Employment, Unemployment, Participation Rate, Germany’s GDP, euro zone trade balance, U.S.'s initial jobless claims PPI, NY Fed Manufacturing, Philly Fed Business Index.