Franklin FTSE Asia ex Japan ETF

FLAX

Börsenwert 54,3 Mio. $

The last time Japan's central bank lifted its main policy rate half a percentage point, prices were so hot the land the Imperial Palace sat on was said to be worth more than the combined ​real estate of California.

A research firm says there are cyclical, fundamental and technical reason to buy Japanese stocks.

Core inflation — which strips out prices of fresh food but includes energy — was in line with expectations, coming in at 1.8%.

Exports growth accelerated for a fifth straight month coming in at 23.2%. Economists polled by Reuters had estimated growth at 19.9%.

Prime Minister Sanae Takaichi's planned food-tax cut would reduce annual government revenue by an estimated 4.4 trillion yen, just as Japan's borrowing costs and debt-servicing bill are rising. Higher JGB yields may attract domestic investors and prevent a disorderly bond sell-off, but they would steadily reduce the government's fiscal room.

The Bank of Japan is likely to take a breather this week to assess the effects of its latest move after raising its policy rate to the highest level in three decades.

JGBs fell in price terms in early Tokyo trade amid concerns over Japan's fiscal policies.

Japanese stocks were lower in early trade as uncertainty over the Middle East conflict continues.

Ayano Sato pledged to carefully watch the impact of a weak yen on prices, though she didn't give any clear hints on her monetary policy stance.

Japanese equities have hit all-time highs at a pace not seen since 1989.