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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (18168)	4/28/2016 7:34:43 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Hi Ox, good pickup.... I saw the huge move in the JPY it happened very quickly.. Message 30560465 ------------------------ Markets \| Thu Apr 28, 2016 4:02am EDT Related: FINANCIALS RPT-FOREX-Yen gains most in 5 years vs euro on BOJ surprise * BOJ holds monetary policy steady, deflates easing hopes * Dollar and Euro fall almost 3 pct vs yen * *Biggest fall in 5 yrs for euro, almost a year for dollar* * Kiwi jumps after RBNZ also skips chance to cut rates By Patrick Graham LONDON, April 28 The yen *surged almost 3 percent* against the euro and dollar on Thursday after the Bank of Japan opted out of any further moves to ease policy, in stark contrast to a handful of media reports which had driven the yen lower in the past week. It was the yen's biggest daily gain in almost a year against the dollar and its largest in 5 years against the euro after Bank of Japan Governor Haruhiko Kuroda said he was not thinking about applying negative rates to lending to financial institutions. Adding to the mix was the lack of a strong sign from the U.S. Federal Reserve on the chances of another rise in its rates in June, weakening the dollar 0.7 percent against a basket of currencies and 0.3 percent against the euro. "With today's policy announcement, the Bank of Japan has essentially excited to disappoint and as a result we've seen the yen moving dramatically stronger in immediate reaction," said Nick Gartside, Chief Investment Officer for Fixed Income at JP Morgan Asset Management. by 0715 GMT, the dollar had fallen 2.9 percent to 108.17 yen and the euro 2.7 percent to 122.90 yen. The BOJ held off from expanding monetary stimulus even as global headwinds, a strong yen and soft consumption threatened to derail Japan's fragile economic recovery. Officials have used language in recent weeks that in the past has prefaced intervention to weaken the yen but most major banks have come to the conclusion that Tokyo will not do so until the currency gets closer to 100 per dollar. Japanese analysts are not convinced the currency can continue to gain. "It was inevitable that the yen regained all the losses made on easing expectations. Sure, the market was disappointed, but that does not mean the yen will keep gaining," said Koji Fukaya, president of FPG Securities in Tokyo. After a two-day policy meeting that ended Wednesday, the Fed said global economic headwinds - widely seen as the main reason it has not pushed rates higher - remained on its radar while stopping short of mentioning the risks these posed. Analysts said it had offered little hope of a hike in rates in June. "The FOMC statement did nothing to help the dollar at all," said Societe Generale strategist Kit Juckes. "(There is) no reason to look for more than one more rate hike this year." New Zealand's central bank also skipped a chance to cut its interest rates on Thursday, triggering a short squeeze that saw the kiwi dollar gain a full U.S. cent. The kiwi soared 2.3 percent to $0.6974, from around $0.6850, after the RBNZ kept the cash rate steady at 2.25 percent. (Additional reporting by Shinichi Saoshiro in Tokyo and Ian Chua in Sydney; Editing by Toby Chopra) ----------------------------------------------------------------------

To: The Ox who wrote (18168)	4/28/2016 7:46:54 AM
From: John Pitera	4 Recommendations Recommended By 3bar Hawkmoon roguedolphin The Ox Respond to of 33421

UPDATE 1-Japan Post Insurance to boost holdings of risk assets, minimize yen bonds Markets \| Wed Apr 27, 2016 4:39 am EDT * To increase both domestic and foreign stocks * Risk assets could hit 10 pct of total by next March * To start investment in junk bonds, alternative assets * Plans to increase FX-hedged foreign bonds investment * May lend money at negative rates in future (adds quotes and details) By Hideyuki Sano and Tomo Uetake TOKYO, April 27 In its quest for higher returns, Japan Post Insurance Co plans to *buy more stocks - both at home and abroad* - and other risk assets while minimizing its holdings of negative-yielding yen-denominated bonds, company officials said. Holdings of risk assets could reach the insurer's target of 10 percent of total assets by next March, ahead of its mid-term plan, the officials told reporters in Tokyo on Wednesday. The move away from domestic bonds gained new traction after the Bank of Japan implemented a negative interest rates policy in January. The 10-year Japanese Government Bond yield has plunged into negative territory, hitting a record low of minus 0.135 percent in mid-March. As of December, risk assets reached 5.3 trillion yen, or 6.4 percent of Japan Post Insurance's total assets. That included 1.2 trillion yen of domestic stocks and 3.8 trillion yen in foreign bonds. Naturally our investment environment is very tough," said Tomoaki Nara, senior general manager of investment planning at the insurer. "We can't just apply our traditional approach centering on domestic bonds. So we will be expanding our investments in alternative assets. We regard this as a good chance to improve our asset management skills." While Japan Post Insurance intends to avoid managing funds at negative interest rates, there could be a situation where it would be forced to lend at negative rates in the money market in the future, officials said. Japan Post Insurance, known as Kampo, is the insurance arm of Japan Post Holdings. Together with the parent company and Japan Post Bank, Kampo listed on the Tokyo Stock Exchange last year. Three quarters of Kampo's total assets are still in domestic bonds, with more than half in government bonds, a legacy of its history as a government-run company. On top of increasing purchases in stocks and foreign bonds, the insurer plans to *start investing in new areas including junk bonds, private equities, infrastructure and real estate investment trusts (REITs),* the officials also said. It is looking into markets with low currency-hedging costs such as European bonds, said Ryosuke Fukushima, senior manager of investment planning. It also plans to start investing in stocks directly, focusing on high dividend stocks, in addition to its existing investment through outside asset managers. (Editing by Ryan Woo) reuters.com ----------------------------- (Editorial note: this would seem to be a bullish sign for risk assets, since the Japan Post Holdings is number 13 on the Forbes Global 500 list as of 2013.....) Japan Post Bank, which together with Japan Post Insurance Co. generates about 80% of group profit, sped up plans to invest its $1.6 trillion of deposits more aggressively after the Bank of Japan’s introduction of negative interest rates this year, said Mr. Nagato, a former executive at what is now Mizuho Bank and later chairman of Citibank Japan. “We’ll do investments in private-equity funds, infrastructure, overseas real-estate investment trusts,” he said. The BOJ’s move has pushed interest rates lower across the board, making it difficult for banks and other financial companies to maintain profit levels. Japan Post Bank, which is forbidden from lending money because it is government-owned, has about 40% of its assets invested in Japanese government bonds. John