The Japanese machinery orders were massively rebounded in November, indicating that the Japanese companies are ready to invest even as the yen remains strong and the global economy remains in a slowdown.
The Japanese economy released he data of the machine orders for November, where it massively rose to 14.8% compared with the prior reading of -6.9%, also it exceeded expectations of 5.1%.
Also, the annual figures for the machine orders for November were released as well, where it rose to 12.5% compared with the prior reading of 1.5%, also it exceeded expectations of 3.8%.
As, the weakening is overseas demand along with the ongoing yen's appreciation have cut profits at Japanese exporters from Nippon Steel Corp. to Panasonic Corp., where the rebound in machine orders indicates that the world’s third-largest economy is doing it best to flexibly deals with the strong yen and the global economy slowdown.
On the other hand, some Japanese analysts indicated that, if the United States becomes stable and Europe begins to show some improvements the global economies will show some enhancements on the long run.
Regarding the yen's chronic appreciation, the authorities intervened in the FX market at least three times last year, and the government assembled four extra budgets, that worth about 20 trillion yen, which obviously weren’t enough to sustain the exports recovery.
As, the USD/JPY pair is slightly changing as well and currently rising and trading around the level of 76.96, after recorded its highest price at 77.02 and lowest price at 76.66.
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