A review of recent cross-border investment flows in and out of Japan: The MUFG Global Markets Podcast

Four candidates, including new entrant and former internal affairs minister Seiko Noda, have declared their intent of running for the LDP leadership. The various factions have been stoking a melee, rather than coalescing around a single candidate. Investors are wary that USDJPY, the Nikkei Average, and JPY rates could come under downward pressure ahead of the September FOMC and Bank of Japan policy meetings both scheduled for September 21-22, as risks related to COVID-19 variants fester. Meanwhile, JPY basis is also less likely to widen this week.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido examines cross-border investment activity in July and discusses the BoJ’s financial stability report. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis. 

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