Flash Note 30/06/2016 Asia. Day 5 after the Brexit (the calm persists)

Flash Note
30/06/2016
Alex Fusté
@AlexfusteAlex
alex.fuste@andbank.com
Asia. Day 5 after the Brexit (the calm
persists)

Markets
o Japan equity markets ended flat on Thursday with the
Nikkei up 0.06%. Markets were sold after a firmer
open, broadly mirroring gains in the yen. TOPIX
sectors were mixed with gains led by resources and
declines driven by textiles. News flow was very light
and today's data releases had little impact.
o China was slightly flat, with the Shenzen B gaining
+0.59% but the Shanghai Stock Exchange lower (0.1%).
o India was higher again (+0.66%)
o Malaysia +0.5%
o And Hong King showing the strongest gains: up +1.6%
o Bonds: Japanese 10yr government bond unchanged
(with yields going up by just 1bp to -0.22%).

Yen
o
JPY strengthened slightly (from 102.75 to
105.58) and gave place to a discussion about the
yen's safe haven phenomenon and the problems it
poses for the Japanese government with few easy
options to curb a rise that hurts exporters and could
tip the economy back into recession. In sum, some of
the conclusions reached is that the global economic
dynamics contributing to the yen's strength persist,
while the effectiveness of unilateral intervention and
additional monetary easing are questioned.
Este documento ha sido realizado por Andbank, principalmente para su distribución interna e inversores profesionales. Este
documento no debe ser considerado como consejo de inversión ni una recomendación de compra de ningún activo, producto
o estrategia. Las referencias a cualquier emisor o título, no pretenden ser ninguna recomendación de compra o venta de
dichos títulos.

Japanese economy – Hard Data
o May industrial production -2.3% m/m vs consensus
-0.1% and +0.5% in April.
o Housing starts +9.8% y/y vs consensus +4.8% and
+9.0% in April.
o Financial flows in Japanese securities for the week
ended 25-Jun. (Just domestic investors are buying
Japanese securities. This could explain partially the
repatriation effect and the recent strength of the JPY)
 Domestic investors:
 Net buyers of ¥211.6B in foreign equities
vs ¥72.4B of net purchases in previous
week.
 Net buyers of ¥394.2B in foreign longterm debt vs revised ¥457.5B of net sales
in previous week.
 International investors:
 Net sellers of ¥184.2B in domestic
equities vs revised ¥232.8B of net sales in
previous week.
 Net sellers of ¥2,157.5B in domestic longterm debt vs revised ¥487.7B of net sales
in previous week.
Regards,
Alex Fusté
Chief Economist
Andbank
Este documento ha sido realizado por Andbank, principalmente para su distribución interna e inversores profesionales. Este
documento no debe ser considerado como consejo de inversión ni una recomendación de compra de ningún activo, producto
o estrategia. Las referencias a cualquier emisor o título, no pretenden ser ninguna recomendación de compra o venta de
dichos títulos.