financializer news A weblog highlighting financial topics making news in the international media.

benchmark nikkei: On Friday, the key market gauge fell 121.70 points. ; The Topix of all first-section issues ended up 18.72 points, or 1.17 percent, at 1,612.26, after shedding 4.70 points the previous trading day, according to The Japan Times. Tokyo stocks attracted hefty buybacks as there were no major provocative acts by North Korea over the weekend, including a ballistic missile launch on Saturday, the anniversary of the reclusive state's founding, brokers said. The benchmark Nikkei 225 average jumped 270.95 points, or 1.41 percent, to close at 19,545.77. Investors also took heart from the yen's weakening against the dollar against the backdrop of receding worries about the situation surrounding North Korea, brokers said. Ota noted a risk-averse mood did not spread in the market. Monday's surge stemmed from short covering by investors who had sold stocks due to concerns over possible provocations by North Korea on the national foundation day, said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc. (news.financializer.com). As reported in the news.

showa endeavor: After that, Japan plunged headfirst into the Showa endeavor known as the k do seich keizai, rapid growth economy convinced that the only way out of the mire of defeat was to work like crazy and never stop, according to The Japan Times. Thanks to that ethos, the tail end of Showa spawned the baburu keizai, bubble economy . Amazing things happened In 1987 a Japanese insurance company bought Vincent Van Gogh's Sunflowers for 39.9 million. The nation then mourned the passing of a beloved but controversial icon who symbolized both Japan's ill-fated entry into World War II in 1939 and its exit in 1945. Two years lager, the Nikkei Stock Average hit 38,915. Three years after Showa ended, crowds flooded the floors of Juliana Tokyo, now fondly remembered as the city's definitive nightclub. It all came crashing down once Showa was replaced by the Heisei Era, but the embers from that fire still smouldered well into Heisei. (news.financializer.com). As reported in the news.

stimulus program: More regional banks should consolidate not only to cut costs, but also to restructure their businesses and boost profitability, he said, according to The Japan Times. Consolidation is inevitable and a good thing, Ohgo said. The Bank of Japan's radical stimulus program, which has pushed interest rates to near or below zero, is severely cutting into bank profits and could destabilize the sector in the not so distant future, said FSA adviser Naoki Ohgo. ; There are only a handful of regional banks successfully making money in niche areas, while many others are struggling to find new business models, Ohgo said in an interview Friday. The remarks are one of the most blunt warnings among financial regulators of the dire prospects for Japan's crowded regional banking sector, underscoring the challenges smaller banks face in surviving a business environment made difficult by years of ultralow interest rates. Unless regional banks boost profitability, it might not take long for prolonged ultraeasy policy to destabilize the banking sector, he said. There's not much time left for regional banks to take steps to survive the graying of society and dwindling margins, said Ohgo, a private consultant who also advises several local governments. (news.financializer.com). As reported in the news.

trade: The RCEP is viewed as a major alternative to the TPP, the 12-nation trade pact agreed last year and then dealt a massive blow by the withdrawal in January of the United States as one of the first acts by newly elected President Donald Trump, according to The Japan Times. RCEP is the only game in town given the current negotiations of the TPP, said Philippine Trade Undersecretary Ceferino Rodolfo. Instead, the economic ministers involved in negotiating the Regional Comprehensive Economic Partnership RCEP agreement covering more than 3.5 billion people, or half the world's population, and 30 percent of global gross domestic product and trade said they will strive to make major progress by November when the leaders of the 16 nations meet in Manila. ; Those 16 nations are China, Japan, India, South Korea, Australia and New Zealand, as well as all 10 members of the Association of Southeast Asian Nations. Economic ministers from the 16 nations were meeting in Manila as part of the 49th ASEAN Economic Ministers' Meeting and Related Meetings. The RCEP participating countries abandoned the target of concluding the negotiations within this year due to differences in tariff reduction or elimination targets, as well as services to be opened up, according to Rodolfo. The gathering was also the fifth ministerial meeting for the RCEP, for which negotiations began in 2013. (news.financializer.com). As reported in the news.

places periods: The guidelines will encourage municipalities to set their own rules under ordinances designed to localize the suitability of minpaku services, according to The Japan Times. The draft guidelines gave examples of places and periods suitable for closure, such as areas near schools and nurseries on weekdays, and mountain settlements during the viewing season for autumn leaves and other periods of heavy traffic. Municipalities would be free to set their own minpaku business holidays, according to the agency's draft guidelines on the new type of lodging. ; The agency plans to finalize the guidelines, seen Friday, by the end of March. In June, Japan enacted a law to spell out the rules for operating minpaku services. It also allows prefectural and other governments to shorten that period in selected areas to prevent their environments from deteriorating. Under the law, to be implemented by next June, minpaku owners will only be allowed to do business up to 180 days per year. (news.financializer.com). As reported in the news.

bond purchases: On Thursday, the key market gauge rose 38.55 points. ; The Topix, including all first-section issues, ended down 4.70 points, or 0.29 percent, at 1,593.54, after gaining 6.24 points the previous day, according to The Japan Times. Selling outpaced buying as the dollar weakened against the yen in response to a plunge in U.S. long-term interest rates, brokers said. The benchmark Nikkei 225 average fell 121.70 points, or 0.63 percent, to close at 19,274.82. The key 10-year U.S. Treasury yield took a blow partly from long-term interest rate falls in Europe prompted by European Central Bank President Mario Draghi's remarks after the ECB's policy-setting meeting suggesting that the bank will next month start discussing tapering of its bond purchases, market sources said. Before sinking deeper in negative territory around midafternoon, stocks did not drop as much as expected despite the negative effects from the yen's rise and U.S. equities' overnight weakness, said Yutaka Miura, senior technical analyst at Mizuho Securities Co. The Tokyo market accelerated its downswing in the afternoon, dragged further down by the dollar's fall below 108. (news.financializer.com). As reported in the news.

morgan stanley: The Soft Bank Vision Fund has also kicked off investments, with deals ranging from ride-sharing, co-working and robotics to agriculture, cancer detection and autonomous driving. ; Soft Bank will hold investor calls on Sept. 8 for potential U.S. dollar, euro note sales, according to a person familiar with this offering, who is not authorized to speak publicly and asked not to be identified, according to The Japan Times. The Japanese internet giant has mandated Deutsche Bank AG, Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley for the deal. The Tokyo-based company headed by billionaire founder Masayoshi Son is accelerating deal-making around the world, and has been in discussions to combine its U.S. wireless operator Sprint Corp. with a potential partner. Soft Bank's bond issuance swelled since 2013, when it bought Sprint, and the company had net debt of 13.6 trillion 125.4 billion at the end of June. Operating profit at Soft Bank was 479.3 billion in the fiscal quarter ended June 30, topping analysts' projections, as Sprint returned to profit for the first time in three years. That debt is offset by the company's unrealized profits in a plethora of companies, led by Alibaba Group Holding Ltd. (news.financializer.com). As reported in the news.

tokyo olympics: Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute, said that strong growth is likely to continue, although concerns over North Korea will linger, according to The Japan Times. Looking ahead of course we have the North Korean issue which is hard to predict but otherwise no urgent worries or risks so the economy will likely continue picking up, he said. But the latest data still marks the longest period of expansion in more than a decade for the world's third-largest economy, with analysts saying the economy still shows strong performance. ; The economy has been picking up steam, mainly on the back of surging exports including smartphone parts and memory chips, with investments linked to the Tokyo 2020 Olympics also giving growth a boost. Marcel Thieliant, senior Japan economist at Capital Economic, said there are early indications pointing to a possible slowdown in the third quarter. On an annualized basis, the economy grew 2.5 percent, driven by robust domestic demand and corporate investment, which offset a quarterly decline in exports. But the bigger picture is that the economy is experiencing one of the longest recoveries in recent history, said Thieliant. (news.financializer.com). As reported in the news.

areas aquaculture: Abe and Putin met for the third time this year and 19th overall, at a time of heightened tensions over North Korea, which conducted its sixth nuclear test Sunday following recent missile launches in defiance of U.N. Security Council resolutions, according to The Japan Times. We had deep exchanges over the imminent threat posed by North Korea. Abe and Putin also agreed in talks on the sidelines of the Eastern Economic Forum in the Russian Far East city of Vladivostok to conduct joint economic activities on disputed islands off Hokkaido in five areas aquaculture, greenhouse farming, tourism, wind power and waste reduction. ; Tokyo sees the initiative as paving the way toward resolving the long-standing territorial dispute over the islands and signing of a post-World War II peace treaty, while Russia hopes to attract investments to the underdeveloped region. We agreed that the nuclear test is a threat to the Korean Peninsula and the region and is a challenge to a nonproliferation regime, Abe told a joint news conference. Putin, while condemning North Korea's missile and nuclear development as posing a threat to international and regional peace and safety, said, There are only political and diplomatic means to resolve the nuclear problem on the Korean Peninsula. We will cooperate closely. (news.financializer.com). As reported in the news.

dozen occasions: But the Bareun party's own leader, Lee Hye-hoon, has been under increasing pressure since prosecutors last month opened an investigation into allegations that a businesswoman gave her cash and gifts worth about 60 million won 50,000 over nearly a dozen occasions, according to The Japan Times. She denies the accusations but stepped down Thursday, telling her party lawmakers, I apologize for causing concern because of my lack of virtue. Dozens of members of the Bareun Justic party splintered from the main conservative group, then known as Saenuri, as accusations mounted against Park and joined forces with then opposition lawmakers to vote for her impeachment. ; The ousted president is now on trial for corruption and other offenses. She insisted she would clear her name and the truth will come out sooner or later. She vowed to make Bareun the main base of conservatism rather than Park's party, now renamed Liberty Korea, but the allegations undermined those efforts. Lee took the helm of Bareun in June after the government changed hands with the election of liberal President Moon Jae-in. (news.financializer.com). As reported in the news.

issue nikkei: On Wednesday, the key market gauge fell 27.84 points. ; The Topix index of all first-section issues ended up 6.24 points, or 0.39 percent, at 1,598.24, after gaining 1.29 points the previous day, according to The Japan Times. Stocks were firmer after U.S. equities rebounded Wednesday thanks to rising crude oil prices and higher interest rates, brokers said. The 225-issue Nikkei average rose 38.55 points, or 0.20 percent, to close at 19,396.52. Oil prices rose after U.S. refineries started to resume operations after weathering Hurricane Harvey. A drop in the yen amid the growing appetite for risk also supported firmness in Tokyo stocks, brokers said. U.S. President Donald Trump's deal with congressional leaders on the debt limit reduced the risk of default, sending interest rates higher and supporting Wall Street's financial issues. (news.financializer.com). As reported in the news.

shopping sites: Reports related to unauthorized computer access and viruses stood at 6,848, followed by those linked to email spam at 6,483, including scams in which recipients were told they would inherit large sums of money, according to The Japan Times. A total of 23 cases involving theft of bitcoin and other virtual currency accounts were reported to police, with close to 59.2 million confirmed as having been stolen. The police say they received 69,977 reports in the January to June period, up 4.9 percent from a year earlier and the highest since 2001 when comparable data became available. ; The leading category of reports, which account for 36,729 cases, involved fraud and other malicious businesses practices to swindle customers of online shopping sites, the police data showed. In such cases, virtual currencies are believed to have first been transferred to different accounts before being converted to cash. Meanwhile, reports of illicit money transfer involving internet banks drastically fell by 645 cases from a year earlier to 214 cases. Reports of such crimes have surged since May and the police fear an increase due to the more widespread use of virtual currencies. (news.financializer.com). As reported in the news.

treasury bonds: Deposits came to 122.694 billion, the ministry said. ; Gold reserves amounted to 32.272 billion, and the International Monetary Fund's special drawing rights totaled 19.100 billion, according to The Japan Times. The appraisal value of U.S. Treasury bonds and other securities held by the Japanese government rose as interest rates fell, while the dollar-converted value of euro-denominated assets rose on the European single currency's strengthening versus the U.S. unit. Of total external reserves, foreign currency-denominated securities accounted for 1.081 trillion. (news.financializer.com). As reported in the news.

institutions hints: Individuals were net buyers in July for the first time since November 2011, according to TSE data, according to The Japan Times. They invested a combined 52 million 476,000 a turnaround that strategists say is likely to have continued in August. ; While the size of investment is dwarfed by the 8.7 billion in net purchases by other financial institutions, the increased presence of retail investors in a 10.4 trillion market that has traditionally been a place for institutions hints at a growing appetite for alternative investment vehicles among Japanese citizens whose world-beating longevity means decades of retirement. Encouraged by the relatively lucrative returns, an increasing number of retail investors are putting their money in some of 58 publicly traded REITs tracked by the Tokyo Stock Exchange's gauge. Seniors in their 70s accounted for 17 percent of total J-REIT investments by individuals for fiscal 2016, according to a survey conducted by IB Research & Consulting Inc. People 60 years old or more accounted for 45 percent in total, according to the company. That's the highest proportion since it started compiling the data in 2012. (news.financializer.com). As reported in the news.

russian city: Abe is visiting the Russian port city to attend a two-day Eastern Economic Forum that started Wednesday, according to The Japan Times. Tokyo sees the joint projects on the Russian-held islands, also claimed by Japan, as a pathway to resolving the territorial dispute and the signing a postwar peace treaty. In their talks in the eastern Russian city of Vladivostok, the leaders are likely to sign off on joint projects in five areas aquaculture, greenhouse farming, tourism, wind power and waste reduction, the source said Wednesday. ; I hope to make progress on the peace treaty issue by realizing joint economic activities that have been promoted and free visits by former Japanese residents to the islands, Abe said before he left Tokyo. Moscow, for its part, hopes to attract Japanese investments in promoting the underdeveloped regions. An intergovernmental working group will also be set up to promote the projects, with officials from foreign, trade, health and environment ministries taking part from Japan, according to the source. With a view to realizing the projects, a group of Japanese government officials and experts from the public and private sectors will conduct a second round of studies on the islands as early as October, the source said. (news.financializer.com). As reported in the news.

test sunday: Mongolia has diplomatic ties with North Korea, while Japan does not. ; Abe told Battulga that North Korea's nuclear test Sunday, which followed the launch last week of a ballistic missile that flew over northern Japan, poses an unprecedentedly grave and imminent threat and is totally unacceptable, according to the Foreign Ministry, according to The Japan Times. Prime Minister Abe underlined the need to strengthen pressure on North Korea, the ministry said. The meeting, held on the sidelines of an economic forum in the Russian port city of Vladivostok, is the leaders' first since Battulga was elected president in July. The leaders reaffirmed the importance of strictly and fully implementing U.N. Security Council resolutions, it said. They also agreed to seek early resolution of the issue of past abductions of Japanese nationals by North Korean agents. The resolutions impose sanctions on North Korea and ban the reclusive state from conducting nuclear tests and launching ballistic missiles. (news.financializer.com). As reported in the news.

blockchain technology: It will also promote the automation of operations through artificial intelligence. ; The partner banks include Fukuoka Financial Group Inc., Chiba Bank, Aomori Bank, Sendai-based 77 Bank and Nagano-based Hachijuni Bank, according to The Japan Times. The financial technology fintech unit will be staffed from the parent firm and partner regional banks. MUFG will put up 3 billion in capital to start Japan Digital Design Inc., which is expected to develop new services including those for cashless settlements using smartphones at small shops. It will also hire engineers externally. The fintech unit will also conduct research on so-called blockchain technology, used for digital currencies. Bank of Tokyo-Mitsubishi UFJ, the group's core banking arm, has started a trial of its original virtual currency, MUFG Coin. (news.financializer.com). As reported in the news.

market gauge: On Monday, the key market gauge shed 183.22 points. ; The Topix, which covers all first-section issues, finished 12.84 points, or 0.80 percent, lower at 1,590.71 after falling 16.04 points Monday, according to The Japan Times. Stocks got off to a firmer start on the yen's easing before the market opening, but soon fell into the negative side, while their topside was capped by fears about additional provocations by North Korea, which conducted a nuclear test Sunday, brokers said. The Nikkei 225 average lost 122.44 points, or 0.63 percent, to close at 19,385.81. Stocks were met with selling by individual investors, amid a dearth of fresh trading incentives. The overall market was dragged down by a fall in stocks in the TSE's Mothers and Jasdaq markets for startups, where some issues were affected by the Chinese government's decision to tighten regulations on virtual currencies, said Ryuta Otsuka, a strategist in the investment information department at Toyo Securities Co. In addition, the yen failed to support stocks as it became stronger after its early weakness, brokers said. (news.financializer.com). As reported in the news.

tourists crowd: Exports, they say, will soar and more foreign tourists crowd in and nationals stay at home perhaps I should have been doing that and in the very immediate term they are right since this is just what has been happening to the United Kingdom as the pound sags to new low points. ; So should I just have been ready to grin and bear it, in awareness of all these advantages for the greater good I am not so sure, according to The Japan Times. We should be very wary of this argument except in the shortest of short periods. I know economists are fond of telling us about the advantages of a weaker currency. Of course, it is true that currencies can be pushed falsely and damagingly high and curbing is needed. But a big and lasting drop, such as the pound sterling has experienced many times since World War II, is quite different. That is what Japan has been trying to do for some while. (news.financializer.com). As reported in the news.

announcement sunday: On Friday, the key market gauge rose 45.23 points. ; The Topix, including all first-section issues, finished down 16.04 points, or 0.99 percent, at 1,603.55, after gaining 2.18 points the previous trading day, according to The Japan Times. Stocks were hit by selling from the outset of Monday's trading, as a risk-off mood grew in the wake of Pyongyang's announcement Sunday that it successfully detonated a hydrogen bomb that can be mounted on an intercontinental ballistic missile, brokers said. The benchmark Nikkei 225 average lost 183.22 points, or 0.93 percent, to close at 19,508.25. But after the initial selling ran its course, the market turned static with investors refraining from active trading, remaining deep in negative territory for the rest of the day, they said. Traders retreated to the sidelines to seer reactions by the United States, China and Russia, in particular, the official added. As always seen after nuclear tests by North Korea in the past, a wait-and-see mood prevailed in the Tokyo market, said an official of a bank-affiliated securities company, suggesting that the impact of the sixth blast by the reclusive nation on the market may be short-lived. (news.financializer.com). As reported in the news.

asset manager: Listed among the tenants of its 3 billion worth of properties are the British government, Tata Steel and Lloyd's Bank, according to The Japan Times. But in the era of Brexit nothing is certain, especially traditional London real estate. That's the approach that the UK Real Estate Fund operated by Schroders Plc, the venerable U.K. asset manager, has long taken. So earlier this month the Schroders fund purchased five London-area self-storage facilities for 55 million, making it one of the first institutional investors in this decidedly low-prestige sector. ; What the purchase lacks in cachet, it makes up in demographic logic. And that's creating what Schroders and other real-estate investors see as a Brexit-proof and recession-proof opportunity. Downsizing retirees and the growing ranks of home renters in London are creating a chronic need for somewhere to put all their stuff. (news.financializer.com). As reported in the news.

government plans: This will be the first time for the government to sell any of its Japan Post Holdings shares since November 2015, when the company went public, according to The Japan Times. The government plans to maintain a stake of slightly over one-third in the holding company and sell all of its remaining shares in stages. Japan Post Holdings is expected to approve the transaction as early as Sept. 11 after assessing further developments on the stock market, which has been rattled by the increasing tensions over North Korea, the sources said. ; The government is set to use the proceeds, estimated at up to 1.4 trillion, to finance reconstruction projects in areas devastated by the March 2011 earthquake and tsunami. The government aims to obtain a total of 4 trillion for use in postdisaster reconstruction projects by fiscal 2022 by selling Japan Post Holdings shares. On Monday, securities companies in the underwriting syndicate for Japan Post Holdings held a meeting to exchange opinions on the additional share sale by the government. At the time of the company's listing in November 2105, the government raised 1.4 trillion. (news.financializer.com). As reported in the news.

questions answers: The city of Hida attracted more than 1 million visitors in 2016 for the first time at least in three years. ; Such sightseeing walking in the footsteps of fictional characters is not new, according to The Japan Times. It's called seichi junrei sacred pilgrimage . But given the immense popularity of Japanese anime overseas, Japan wants to further promote this type of tourism to international visitors. Gifu Prefecture has seen more tourists since its sites appeared in the movie. The following are some questions and answers about anime tourism When did the trend first start Avid anime fans had been retracing the steps of their favorite characters since the 1990s, according to Takeshi Okamoto, an associate professor at Nara Prefectural University who researches anime tourism. The activity was still low-key back then, he said, only to heat up with the widespread use of the internet in the mid-2000s. Fans of the Sailor Moon series, which first aired on TV in 1992, would visit a shrine in Tokyo featured prominently in the program. (news.financializer.com). As reported in the news.

u.s .,: That is no accident on the economic front, Trump's approach might have some redeeming qualities, according to The Japan Times. From the outset, the Trump administration has maintained a pro-business attitude, exemplified by his commitment to deregulation, raising hopes among investors of a boost to the U.S. and global economies. Yet America's stock market has performed well since Trump's election, faltering only when his administration's political future appears to be in doubt. To be sure, efforts to roll back, say, environmental protections will ultimately do serious harm to the U.S., even if they allow some companies to improve their bottom line in the short term. The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Barack Obama in 2010, is a good example. But the Trump administration's eagerness to free financial markets of excessive regulation may ultimately prove beneficial for all. ; When regulations become too cumbersome, they can do more harm than good. (news.financializer.com). As reported in the news.

china banking: Central banks cannot afford to treat cybercurrencies as toys to play with in a sandbox, said Andrew Sheng, chief adviser to the China Banking Regulatory Commission and a distinguished fellow of the Asia Global Institute at the University of Hong Kong, according to The Japan Times. It is time to realize that they are the real barbarians at the gate. Until recently, officials at major central banks were happy to watch as pioneers in the field progressed by trial and error, safe in the knowledge that cryptocurrencies were dwarfed by the roughly 5 trillion circulating daily in conventional currency markets. ; But now, as officials turn an eye toward the increasingly pervasive technology, the risk is that they are reacting too late to both the pitfalls and the opportunities presented by digital coinage. The cryptocurrency Exio Coin will start a round of fundraising on Thursday, with its founders claiming a unique distinction the first to be endorsed by a sovereign nation. According to co-founder Sunny Johnson, though, the supporter is one of the world's richest countries on a per capita basis. The identity of the government backer won't be revealed until October, and the claim of support is currently unverifiable. (news.financializer.com). As reported in the news.

korean citizens: Kono said on television that reducing the number of North Koreans working abroad will be considered, according to The Japan Times. Imposing an oil embargo on North Korea will be nearly the final option, Kono said. The measure is aimed at reducing funding for North Korea's nuclear and missile programs. ; The UNSC resolution adopted in August prohibits U.N. member nations from increasing the number of workers they accept from North Korea. Banning oil exports would affect the lives of ordinary North Korean citizens and require the agreement of China and Russia, he said. Japan time signaled that a nuclear test had been carried out in North Korea. Kono made the remarks before an earthquake was detected at 12 30 p.m. (news.financializer.com). As reported in the news.