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SPDR Russell/Nomura PRIME Japan ETF (JPP)

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  • May 15, 2014, 3:12 AM
    • Japanese GDP growth surged to its fastest level in over two years in Q1, accelerating to an annualized 5.9% from 0.3% in Q4 and breezing past consensus of 4.2%.
    • On quarter, GDP +1.5% vs +0.2% +1%.
    • The economy was boosted by personal consumption soaring an annualized 8.5% as shoppers rushed to make purchases prior to sales tax rising to 8% from 5% on April 1. Businesses lifted capex 4.9%, while they also increased output, capex, jobs and overtime pay.
    • The downside of the strong overall print is that the economy is expected to pull back in Q2.
    • The Nikkei is -0.75% as Sony weighs on sentiment following its poor earnings reports, while the USD-JPY is flat at ¥101.93. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, JPNL, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP
    | 2 Comments
  • May 7, 2014, 7:39 AM
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  • May 2, 2014, 3:53 AM
    • Japan's unemployment rate held steady at 3.6% in March, as expected (PR)
    • Overall household spending jumped 7.2% on year after dropping 2.5% in February and blew past consensus of +1%. The likelihood is that consumers rushed to make purchases before a hike in sales tax to 8% from 5% went into effect on April 1. (PR)
    • The impact of the tax rise may not be as strong as feared, as auto makers and major department-stores yesterday reported smaller-than-expected declines in April sales.
    • The Nikkei is +0.6%, while the USD-JPY is +0.15 at ¥102.48.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP, DXJH, DXJT, DXJC, DXJR, DXJF
    | Comment!
  • Apr. 28, 2014, 2:18 AM
    • Japanese retail sales jumped at the fastest level in 17 years in March, climbing an expected 11% on year after growing 3.6% in February.
    • On month, sales soared 16.1% vs +1.3%.
    • The reason for the large gain is that consumers rushed to purchase goods before a rise in sales tax to 8% from 5% went into effect on April 1. The upshot is that sales are expected to fall this month but then recover in May.
    • The Nikkei is -1.05%, while the USD-JPY is +0.05% at ¥102.25.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, NKY, JYN, DBJP, EZJ, EWV, YCL, DXJS, SCJ, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP
    | Comment!
  • Apr. 25, 2014, 2:25 AM
    • Japanese core inflation, which excludes fresh food prices, held steady at 1.3% on year in March but came in below consensus of 1.4%.
    • Core core CPI, which excludes fresh food and energy, slipped to +0.7% from +0.8% in February.
    • Overall inflation increased to 1.6% from 1.5%.
    • Tokyo CPI surged to +2.9% in April from +1.3% in March and core inflation to 2.7% from 1% for the biggest rise since 1992, boosted by the hike in sales tax at the start of the month. Excluding that increase, prices rose just 1%, as in March.
    • The question is whether the Bank of Japan's attempt to push inflation to 2% by 2015 has stalled despite the BOJ's massive bond-buying. If so, the bank might feel the need to increase its asset purchases. (PR)
    • BOJ officials are increasingly concerned that the domestic bond market isn't reflecting how inflation has risen over the past year or so, Bloomberg reports. That raises the risk that yields could suddenly surge. The problem for the BOJ is that yields have stayed low because of its QE program.
    • Meanwhile, President Barack Obama has ended a three-day trip to Japan without sealing a trade deal that's seen as key to the wider 12-nation Trans-Pacific Partnership. While the U.S. and Japan have made a breakthrough on market access, gaps remain.
    • The Nikkei is +0.2% and the USD-JPY is flat at ¥102.33.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP
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  • Apr. 22, 2014, 4:06 AM
    • Japan has overhauled the investment committee of its $1.26T Government Pension Investment Fund (GPIF), the world's largest pension fund.
    • Prime Minister Shinzo Abe wants the GPIF to improve returns by making higher-risk investments and reducing its reliance on low-yielding government bonds.
    • Citigroup believes that the Bank of Japan could increase its bond-buying to offset reduced JGB purchases by the GPIF.
    • The revamp is part of Abe's "third arrow" of his strategy to reform the economy and lift Japan out of deflation.
    • Because of its mammoth size, the GPIF is closely watched as a bellwether for Japan's institutional investors. Last June, it increased its weighting of domestic stocks and lowered that for Japanese bonds.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP
    | 1 Comment
  • Apr. 11, 2014, 7:40 AM
    • Buy the dip? Last night's 2.4% dive brought the Nikkei lower by about 7% for the week - it's worst 5-day stretch since the 2011 earthquake and tsunami. The index is now off about 14% YTD.
    • Maybe not helping is April 1's boost in the sales tax to 8% from 5%. The last previous sale tax boost in 1997 proved to be a rally-killer. "2014 is not 1997," says JPMorgan's Jesper Koll. "The probability of success is better than ever." We shall see.
    • ETFs: DXJ, EWJ, DFJ, NKY, DBJP, EZJ, EWV, DXJS, SCJ, JPNL, ITF, JSC, JPP, JPNS, HEWJ, FJP
    | 2 Comments
  • Apr. 11, 2014, 4:53 AM
    • Japan's Cabinet has approved an unpopular plan to reinstate nuclear energy as an important source of electricity, although there are doubts about how big a role atomic power will be able to play.
    • Japan may have to leave up to two-thirds of its 48 idled nuclear reactors closed, a Reuters analysis shows, due to the high cost of upgrades, local opposition or seismic risks.
    • The country's nuclear plants were shut following the Fukushima disaster over three years ago, which has caused the country to significantly increase its energy imports. That has acted as a drag on GDP and prompted fears that Japan could suffer from a permanent current-account surplus which could undermine confidence in its massive debt.
    • Relevant tickers: DNN, CCJ, USU, URRE, UEC, URG
    • Japan ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, ITF, JPNL, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, URA
    • Nuclear ETFs: URA, NLR, NUCL
    | 11 Comments
  • Apr. 8, 2014, 2:42 AM
    • As expected, the Bank of Japan has left its key interest rate at 0.1% and maintained its program of expanding the monetary base by ¥60-70T ($580-680B) a year.
    • The BOJ refrained from further easing and maintained its optimism about the economy despite concerns about the impact of a rise in sales tax that took effect last week.
    • The "economy is continuing to recover moderately...albeit with some fluctuations due to the consumption tax hike," the bank said.
    • Japan's current account swung back to a surplus for the first time in five months in February, with the number coming in at ¥612.7B from a record deficit of ¥1.59T in January, although the surplus was lower than consensus of ¥628B. There have been fears that the deficit could become permanent, which could weaken confidence in Japan's massive debt.
    • The Nikkei closes -1.4%, while the USD-JPY is -0.3% at ¥102.80. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | 1 Comment
  • Apr. 7, 2014, 12:35 PM
    • WisdomTree will roll out five currency-hedged ETFs, each with a different sector focuses within the Japanese equity market.
    • The WisdomTree Japan Hedged Tech, Media and Telecom Fund (DXJT), Financials Fund (DXJF), Real Estate Fund (DXJR), Capital Goods Fund (DXJC) and Health Care Fund (DXJH) will all launch tomorrow.
    • Each fund will feature an expense ratio of 0.43% and will hedge against fluctuations in the relative value of the Japanese yen against the U.S. dollar.
    • Japanese equity ETFs: DXJ, EWJ, NKY, DBJP, EZJ, EWV, JPNL, ITF, JPP, JPNS, HEWJ, FJP
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  • Apr. 1, 2014, 3:29 AM
    • The Bank of Japan's Tankan survey of large-manufacturing sentiment increased for the fifth consecutive time, edging up to a seven-year high of 17 in Q1 from 16 in Q4 but slightly missing consensus of 18.
    • The non-manufacturing index rose to 24 from 20, as expected.
    • However, with sales tax increasing to 8% today from 5%, the manufacturing outlook print slumped to 8 from 14 and the non-manufacturing outlook dropped to 13 from 17. Both figures were worse than expected.
    • In addition, big companies expect to increase capital spending by just 0.1% this fiscal year, which starts today, way below a previous reading of 3.9%.
    • "There isn't much reason for companies to be optimistic," says economist Shinichiro Kobayashi. "The sales-tax hike is going to drag on the economy, and exports have been weaker than expected on the back of a slow global recovery." (PR)
    • Meanwhile, Japanese shoppers went on a spending binge to stock up ahead of the tax hike.
    • The Nikkei closed -0.2%, while the USD-JPY is +0.1% at ¥103.29.
    • ETFs: DXJ, EWJ, FXY, YCS, EPP, JGBS, JGBD, AAXJ, NKY, JYN, DBJP, EZJ, EWV, GMF, YCL, AXJL, JPNL, ITF, JGBL, EEMA, JPP, JGBT, JPNS, PAF, JGBB, JPX, HEWJ, FPA, FJP, UXJ, DBAP
    | Comment!
  • Mar. 27, 2014, 4:53 AM
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  • Mar. 14, 2014, 3:10 AM
    • The Nikkei leads Asian stocks lower following more weak Chinese economic data yesterday and amid increased tension in Ukraine, with the Japanese index slumping 3.3%. A sharp rise in the yen overnight didn't help matters.
    • "Japan stocks often take the first hit on bad Asian news, then when the U.S. markets fall later, they react to that as well, resulting in a 'double whammy' effect," says hedge-fund manager Ed Rogers.
    • Hong Kong shares are also suffering as the Hang Seng drops 0.9% and heads for its worst week since May 2012.
    • Elsewhere in Asia, China -0.8% and Indian -0.9%.
    • Meanwhile, Japanese industrial production rose 3.8% on month vs a prior estimate of +4%.
    • On year, output +10.3% vs +10.6%.
    • Capacity utilization +5.9% vs +2.2%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, JPNL, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP, EWH, EWHS, FCHI, FHK
    | Comment!
  • Mar. 12, 2014, 2:59 AM
    • Toyota (TM) has agreed to raise base salaries for its Japanese workers for the first time in six years amid soaring profits at the company, with staff set to receive an average increase of 2.9%.
    • Other firms are also increasing wages, including Honda (HMC), Nissan (NSANF), Nippon Steel & Sumitomo Metal (NISTF), retailer Lawson and Daiwa Securities Group (DSEEY).
    • The pay increases signal how major companies are paying heed to the government's exhortations to lift wages as part of the battle against deflation.
    • Separately, Toyota has issued $1.75B of "green" bonds linked to auto loans that will be used to help finance vehicles that are powered by hybrid or alternative fuel.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, JPNL, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP
    | 3 Comments
  • Mar. 11, 2014, 2:44 AM
    • As expected, the Bank of Japan has left its key interest rate at 0.1% and maintained its program of expanding the monetary base by ¥60-70T a year.
    • The BOJ upgraded its assessment of industrial output and investment but cut its analysis for exports.
    • In a related development, Japanese machine tool orders, a leading indicator of capex, climbed 26% on year in February, although that was down from +40.3% in January.
    • The bank's latest policy decision comes ahead of a rise in sales tax next month that is expected to drag on the economy.
    • The Nikkei is +0.7%, while the USD-JPY is flat at ¥103.31. (BOJ Statement)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JGBL, JSC, JPP, ITF, DXJS, JGBT, JPNL, JPNS, FJP
    | 1 Comment
  • Mar. 10, 2014, 2:36 AM
    • Japan has revised down its Q4 GDP growth calculation to 0.2% from an initial 0.3%, with the economy held back by weaker-than-estimated capex and consumer spending.
    • Annualized GDP was +0.7% vs +1%. (PR)
    • The current-account deficit increased to a record ¥1.59T ($15.4B) in January from ¥638.6B in December. (PR)
    • "Capital spending remains weak and exports are not coming back to strengthen the recovery, and without support in these areas, Japan's economy is going to contract significantly in the second quarter," says economist Yoshimasa Maruyama. "The negative effect from the (upcoming) sales tax rise could be worse than the BOJ and government expect."
    • The Nikkei is -0.9%, while the USJ-JPY is -0.1% to ¥103.12.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, ITF, JSC, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP
    | 3 Comments
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JPP Description
The SPDR® Russell/Nomura PRIME™ Japan ETF, before expenses, seeks to closely match the returns and characteristics of the total return performance of the Russell/Nomura Prime Index, an equity index based upon the Japanese composite market. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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