Japan

Brexit-risk impacted Japan

In the UK, but the risk of a Brexit power in Japan, the economies become increasingly difficult. The value of the Yen rises, exports become more expensive, the stock market is day to day.

On Tuesday, the Japanese index, the Nikkei lost another one percent, on Monday, the Minus amounted to 3.5 percent. Traders in Tokyo are nervous. “At the Moment there is simply no compelling reason to buy shares,” said Zeng Yan of Zhongtai Securities. Hedge funds have begun to rely on the so-called “Brexit”, reported market participants.

The British vote in just over a week remaining in the EU. The risk-assessment of the dealer will now be determined by the most recent Brexit surveys, which show “controls the United Kingdom question to leave the EU”, the judgment of Ray Attril, Währunsgexperte at the National Australia Bank. “In light of the foregoing, the Yen is back as a safe haven.”

Attention to the financial stability

Investors in Asia pushed the Yen to its highest level since October 2014. The Japanese Ministry of Finance announced, meanwhile, will lean against any further appreciation of the Yen. Fast and speculative movements should stop at the foreign exchange market, it is going to react to it, said Finance Minister Taro Aso on Tuesday in Tokyo.

A surgery on the market in Accordance with the partners in the group of 20 major industrial and emerging countries (G20), said Aso. The group of States had declared in February that the strong fluctuations on the foreign exchange market were undesirable because they could jeopardise the financial stability.

The rapid rise in the Yen may weigh on Japanese exporters, whose products become more expensive as a result. On Tuesday, export values, such as Toshiba were among the losers in the stock market in Japan as well. The rapid Yen rise but it can also complicate the struggle of the Japanese government against the very low Inflation, because imports are cheaper.

ar/iw (rtr, dpa, afp)