The Nikkei lost just a smidgeon today but still holds levels way up on the year. The YTD number is just over 6% because much of the rally was in Q4 2016, so on a 1yr basis is up almost 22%. The Yen continues comfortably mid 112’s but with more weakness expected. Elections will be interesting next month especially with the new party, led by Tokyo governor Yuiko Koike, only just formed last Wednesday. Todays Japanese data saw mixed results with Consumer Prices, Retails Sales and Industrial Production all showing opposite trends. Almost every other Asian exchange closed higher with HSI, Shanghai, and Australian ASX all closing around +0.3% with the KOPSI closing a strong near 1% gain for the day. Financials and exporters have been the leaders in this rally but probably to the detriment of the currencies. National holidays in China next week.
This post was published at Armstrong Economics on Sep 29, 2017.