Foreign Investors Dump Japan Stocks as Economic Planning Fails
Foreign investors are on an exodus out of stocks in Japan as disillusionment with the country’s economic policies sets in, according to a report. The latest news comes as Japanese fintech and bitcoin startups continue to post multimillion-dollar deals, providing a small but notable ray of hope. Reuters reports that foreign investors, including large....
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While the greenback has been rising higher, the Japanese yen tapped a 24-year low and Japan decided to intervene in foreign exchange markets (forex) for the first time since 1998. Reports say the Bank of Japan conducted the first forex intervention in 24 years, after the Japanese central bank kept its benchmark bank rate suppressed for quite some time. Following the intervention, the yen rallied as the U.S. dollar took a steep dive against the Japanese yen during Thursday’s trading sessions. However, the greenback has stepped back up to the plate and the yen’s recent gains....
The US Federal Reserve ended QE last week and promised to keep rates “extraordinarily low” for an extended period of time. However, the great QE rotation has been passed to the Bank of Japan (BOJ) and they answered the call mightily Friday by increasing their bond purchases (QE) by a third. They will not only be buying bonds but stocks and real estate. Meanwhile, the Japanese pension fund announced it will increase its allocation to domestic and foreign stocks. On the tail end of this, global stock markets roared to the upside and the Japanese stock market (Nikkei) has reached a 7 year....
The push for the next spike in Bitcoin price could come from Japan very soon. More exchange traders are joining the bandwagon and the market outlook says there has been a rise in the value amount of Bitcoin traded after the first half of this year. Following a market research in July, BitFlyer says its virtual currency exchange has the largest Bitcoin trading volume in the first half of 2016 across Japan as it made a 200,000 registered users breakthrough in June. It says about 7.8 million bitcoins (worth about 430 billion yen) was traded within the January and June period in Japan and....
Bitcoin Mercantile Exchange (BitMEX), a bitcoin derivatives exchange that launched in 2014, already has 5,800 users who have traded $760 million on the exchange, according to Bloomberg. Started by Arthur Hayes, a former Citigroup trader living in Hong Kong, the goal was to create an exchange where people use cryptocurrency to bet on securities not easily accessible to them in their home markets. Because China restricts exchanging its yuan for other currencies, citizens find it expensive and difficult to invest in overseas securities. Foreign investors are also restricted in trading China....
The price of bitcoin has reached a steady point. At press time, the price has halted at $656 after hovering around $658 for most of the week. A mere $2 drop is nothing to panic about, though bitcoin has become somewhat stagnant as the financial market continues to play its course. However, as Japan faces continuing inflation, the country’s investors may give the bitcoin price a kick-start in the near future. Japan Investors Flocking to Bitcoin? One platform describes every bitcoin advocate’s nightmare — that while bitcoin reaches a still point, stocks and bonds are likely to start gaining....