Asian forex markets

Asian markets and currencies in moving yen because Japan is an economic engine for the region. Economic problems and / or political instability in individual countries, often have a strong pressure on Japanese companies and banks that have a lot invested in this region, and therefore instability in Asia undermines yen.

Japanese stock market: When NIKKEI falls, yen usually also falls, as investors away from Japanese assets, and vice versa. Moreover, since Japanese banks use large packages of its shares as part of the capital structure, with the fall of the Japanese NIKKEI weaker banks.

Japanese market for government bonds: the 10-year Japanese government bonds (JGB) typically generate revenues when the economy stumbles and falls NIKKEI. As the price of bonds is growing, profitable spread between the U.S. Securities and JGB is expanding, and money spent in the stock market in bonds, tend to go abroad, giving the yen more push down. If the price of bonds falls, it often happens when international investors have fully come out of yen-denominated assets, which also weakens the yen.

Japanese current account and trade performance: The market assumes that if the Japanese trade surplus will be large, and if there will be fluctuations in the figures, the impact would be minimal. And even if the crisis in Japan is declining, the balance is definitely a great help to yen.

Investment capital: The indicator of economic health, observed the Bank of Japan. This is another tip for corporate investment in plant and equipment, a key factor for long-term economic growth.

Tankan review: a quarterly business review secret corporate sector, produced by the Bank of Japan. A key indicator of the health of the corporate sector. Of leading indicators of employment and capital investment.