2. Index
● Abenomics
● Corporate uneasy to Abenomics
● Risk of consumer prices falling
● The nation and a recession
● Japan’s yen has fallen
● Tendency of Investors and economic data
● Growth key point of Japan is exports
● Japan economy
3. Abenomics
● The plan have three points – called
"Abenomics," named after newly-elected Prime
Minister Shinzō Abe.
– It involves a massive increase in fiscal stimulus
through government spending,
– a massive increase in monetary stimulus through
unconventional central bank policy,
– and a reform program aimed at making structural
improvements to the Japanese economy.
4. Corporate uneasy to Abenomics
● Capital spending and wages are essential
for the success of Japanese Prime
Minister Shinzo Abe's reflationary policies
known as "Abenomics", but last year
companies were slow to implement their
business investment plans due to
uncertainty over the growth outlook.
5. Risk of consumer prices falling
● Bank of Japan Gov. Haruhiko Kuroda is
warning there’s a risk of consumer prices
falling even as he targets 2 percent
inflation.
● All of that hasn’t stopped the Topix share
index from advancing 10 percent in the
first quarter.
6. The nation and a recession
● Industrial production shrank 3.4 percent in
February, matching the largest decrease since
2011. Consumer spending contracted 2.9
percent from 12 months earlier. The nation
suffered a recession last year.
● One measure of inflation is at zero, and Kuroda
reiterated Tuesday he couldn’t rule out the risk
of consumer prices falling temporarily.
7. Japan’s yen has fallen
● Japan’s yen has fallen as the central bank
uses asset purchases to pump money into
the economy, its main weapon in the battle
to snap 15 years of stagnating prices.
● The BOJ is boosting its bond holdings by
¥80 trillion a year, and it now owns more
than 20 percent of the government debt
market.
8. Tendency of Investors and
economic data
● Investors tend to look at the overall
performance of the economy and
developing price action.
● Economic data out of Japan has been
positive of late, but the shadow of the April
sales tax hike continues to cast a pall over
the island nation’s economy.
9. Growth key point of Japan is exports
● Exports have grown at a faster pace in Japan
but not even a weaker yen has been able to
significantly change the course of the economy.
● The main reason for this is that following a
globalization and cost-reduction strategy, Japan
has outsourced almost a third of its
manufacturing.
10. Japan economy
● BOJ Governor Kuroda said responsibility for Japan’s
fiscal health lies with the government.
● Consumer prices excluding fresh food slipped in October
from a month earlier, according to the median estimate
of 28 analysts surveyed before a report next week.
● Stripped of the effects of April’s sales-tax increase, the
central bank’s core measure of inflation was 1 percent in
September.
● The yen has fallen too quickly, according to Japanese
Finance Minister Taro Aso.
