Aug 20, 2014

Skepticism over Abe's inflation goal grows as price gauge retreats

Traders are growing more skeptical Prime Minister Shinzo Abe will achieve his 2 percent inflation target after a sales tax increase derailed growth. The 10-year break-even rate, a gauge of expectations for consumer-price gains in inflation-linked bonds, dropped to 1.16 percent Tuesday, the lowest ...

Aug 16, 2014

IMF urges Japan to take quick action on structural reforms

The International Monetary Fund has underscored the need for Japan to promote structural reforms quickly in light of its worst gross domestic product contraction in 13 quarters. “With the near-term outlook looking increasingly uncertain, the government needs to move quickly on the third arrow ...

Aug 15, 2014

64% of small firms to issue pay hikes this year: METI

A Ministry of Economy, Trade and Industry survey revealed Friday that 64.5 percent of the nation’s small companies have decided to raise pay this fiscal year, up from 56.8 percent the previous year. “The virtuous cycle of the economy is having a wider impact,” ...

Aug 15, 2014

Worrying economic signs

The government must determine whether the slump in consumer spending during the April-June quarter is temporarily the result of the reaction to the three-percentage-point rise in the consumption tax, or reflects the Abe administration's policy failure.

75% oppose second stage of sales tax hike

Aug 15, 2014

75% oppose second stage of sales tax hike

Three-quarters of the public is against the second stage of consumption tax hike planned for October 2015, after taking a heavy blow from the first stage in April, according to the latest survey. In a survey carried out by Jiji Press over four days ...

Aug 14, 2014

GDP plunge prompts talk of speeding up regional stimulus package

The Abe administration plans to accelerate efforts to compile an economic stimulus package for regions outside Tokyo in light of the bleak gross domestic product data released for the April-June quarter, government sources said. The government of Prime Minister Shinzo Abe appears to believe ...

Aug 14, 2014

Investment trust assets set new record high in July

The net asset value of publicly offered stock investment trusts in Japan hit a record high ¥70.1 trillion at the end of July, up 1.9 percent from June, recent data compiled by the Investment Trusts Association show. The balance exceeded the previous high of ...

April-June machinery orders plunge at fastest pace in five years

Aug 14, 2014

April-June machinery orders plunge at fastest pace in five years

Core private-sector machinery orders fell at the fastest pace in more than five years in the April-June quarter, the government said Thursday, underscoring corporate reluctance to boost investment after the April 1 consumption tax hike. The orders, which exclude those for ships and from ...

Megabanks' $800 billion cash pile shows Abe must free up credit

Aug 14, 2014

Megabanks' $800 billion cash pile shows Abe must free up credit

Prime Minister Shinzo Abe has succeeded in wrestling down the yen and snapping a 15-year deflationary spiral. The challenge of spurring lending by the country’s cash-hoarding megabanks remains. The nation’s three largest lenders increased their cash and deposits with other financial institutions 5.7 percent ...