Marketing Report (August 12, 2010)
Marketing Report (August 12, 2010)
The MOF and BOF discussed the money market. The vice minister of finance for international affairs said that he met with the executive director Hiroshi Nakaso of the bank of Japan and discussed the money market trends. The vice minister and the executive director discussed the appreciation of the yen against the dollar. The two leaders did not establish any measures to address the strength of the yen currency (Nikkei Net interactive, 2010).
Moreover, the consumer confidence index in the country moved from 0.2 point from June to 43.3 in July. The consumer index showed that consumers in the country were willing to buy more as the consumer purchasing power rose by 3.9 points. Though the consumer confidence index and buying power changed, the government did not change its economic assessment. The consumer confidence index is calculated using five point scale. The five point scale measures how customers view their living standards and other groups in the next 6 months. For example, if a consumer index reads 100, it means the customers believe that their living standards are improving. If the consumer index reads zero, it means the consumers do not believe their living standards are improving (Nikkei Net interactive, 2010).
Further, foreigners were the main buyers in the Japanese’s stocks for the second week. That is from august 1 to august 7.This is according to a report given by the finance minister. The minister claimed that the total amount in the Japanese stock was 150.1 billion yens. The foreigners purchased a total of 3.31 trillion yen. The total sales during this period were 3.16 trillion yen (Nikkei Net interactive, 2010).
Foreigners bought medium and long term bonds during the first five weeks. They purchased a total of 1.51 trillion yen and sold bonds with 1.32 trillion yen. The total capital inflow for the Japanese stock was 188.3 billion yen. Also, Japanese investors bought medium and long term bonds from the oversea market. The finance minister said that Japanese investors sold 3.09 trillion yen in form of bonds and bought 4.13 trillion from the oversea markets. The capital flow was 1.04 trillion yen (Nikkei Net interactive, 2010).
In addition, the Japanese’s investors were the main sellers in the overseas stock .The investors sold 32.9 billion yen and a total of 375.4 billion yen. They purchased a total of 342.6 billion yen. The Tokyo stocks have expanded their losses. The Nikkei stock average fell with more than 200 points from Wednesday and traded below 1900. Some people argue that the appreciation of the yen may weaken in the Asian stock markets. This will affect the investor and prevent many investors from investing in the country. The Japanese government bonds reduced on Thursday. This reduced the yields to a multi year lows as investors came into the country to safe their assets. The investors feared that the soaring yen and slow economic recoveries in the oversea market could affect Japan economy (Nikkei Net interactive, 2010).
Reference
Nikkei Net interactive. (2010, August 12).Retrieved fromhttp://www.ceoexpress.com/default.asp on 12/08/2010.
Is this your assignment or some part of it?
We can do it for you! Click to Order!
