The recent downgrade of Japan by the S&P was not expected, as analysts were focusing on the fact that Japanese government bond yields have been relatively stable, the yen fairly strong, and the government’s readiness to address its debt load. Related exchange traded funds (ETFs) will take a further hit if the downward spiral continues.
Katie Benner for Fortune reports that the agency has been concerned about Japan’s economy for months. One representative said, “The downgrade reflects our appraisal that Japan’s government debt ratios–already among the highest for rated sovereigns–will continue to rise further than we envisaged before the global economic recession hit the country and will peak only in the mid-2020s.”[Japan ETFs: Call It A Comeback.]
- Yuka Hayashi And Andrew Monahan for The Wall Street Journal report that Japan’s new minister for economic and fiscal policy raised eyebrows in the political world by crossing over from the opposition camp. He stated Wednesday he was satisfied that the central bank has taken sufficient easing steps in recent years to fight the country’s economic difficulties and continuing deflation. [Japan’s ETFs And Sentiment Rises.]
- Lindsay Whipp for The Financial Times reports that Japanese exports accelerated for the second month in December; imports slowed.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.