Quote & Headlines
5d 1m 3m 1y 5y 10y
To learn more about Seeking Alpha PRO, click here.
There are no Transcripts on JSC.
JSC vs. ETF Alternatives
The SPDR® Russell/Nomura Small Cap™ Japan ETF, before expenses, seeks to closely match the returns and characteristics of the total return performance of the Russell/Nomura Japan Small Cap Index, an equity index based upon the Japanese small cap equity market. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details on sponsor's website
See more details on sponsor's website
Tuesday, Aug 275:03 AMJapan considers allocating $257B just to service its debts
Tuesday, Aug 275:03 AM| 9 Comments
- Japan's Ministry of Finance reportedly wants to allocate a record ¥25.3T ($257B) just to service the country's mammoth debt of ¥1,000T ($10T) - which is double the size of its economy - for the next fiscal year.
- The expected provision is 13.7% higher than for this FY, indicating how the ministry wants to guard against a possible rise in long-term interest rates.
- The speculation comes as Japan debates whether to increase sales tax, a move seen as important for dealing with the country's debt but also as possibly hurting its nascent growth.
- ETFs - Stocks: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS. Bonds: JGBT, JGBL, JGBS, JGBD. Currency: FXY, JYN, YCL, YCS
Tuesday, Aug 274:18 AMWariness over possible U.S. action on Syria hits Asian stocks
Tuesday, Aug 274:18 AM| Comment!
- Asian shares are mostly lower after John Kerry signaled that the U.S. could take military action against Syria due to strong suspicions that the latter used chemical weapons against its citizens.
- The Turkish lira hits a record low of 2.0163 to the dollar, although the yen is up, with the USD-JPY -0.7% at 97.85.
- "It's a risk-off story because of Syria and also if you see broad repatriation from emerging-markets currencies, the yen will benefit," says Michael Turner, a strategist at RBC.
- However, Chinese shares are higher following positive data for industrial profits.
- Japan -0.7%, Hong Kong -0.5%, China +0.3%, India -2.8%, Turkey (TUR) -2.9%.
- Japanese ETFs - Stocks: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS. Bonds: JGBT, JGBL, JGBS, JGBD. Currency: FXY, JYN, YCL, YCS
Monday, Aug 194:56 AMMore on Japan's July trade data: Weak yen has big influence
Monday, Aug 194:56 AM| Comment!
- The 12.2% rise in exports was the fastest since December 2010, with the weak yen helping to boost sales of cars and electronics. Sales to the U.S. +18.4%, to China +9.5%, to the EU +16.6%.
- "The details are encouraging because you can see that exports to Japan's main markets are bouncing back," says economist Hiroaki Muto.
- The 19.6% jump in imports was the largest gain in three years, due to the weak yen and increasing oil prices.
- The trade deficit of ¥1.02T was the third-largest ever. "This is a pretty big deficit and a negative for Japanese companies that will suffer from rising costs," says Yoshiki Shinke of Dai-ichi Life Research.
- ETFs - Stocks: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS. Bonds: JGBT, JGBL, JGBS, JGBD. Currency: FXY, JYN, YCL, YCS.
Thursday, Aug 154:03 AMJapan plays down prospects of cut in business tax
Thursday, Aug 154:03 AM| Comment!
- Reducing Japan's corporate tax rate wouldn't have an immediate impact on the economy, Finance Minister Taro Aso says, as only around 30% of firms pay such taxes.
- Rather, the government should consider tax breaks to promote capex and business investment. Economics Minister Akira Amari echoed those remarks.
- In addition, Chief Cabinet Secretary Yoshihide Suga denied that Prime Minister Shinzo Abe has told ministers to consider reducing the corporate tax rate.
- There has speculation that the government is considering the cut in order to offset a planned two-step rise in sales tax amid fears that such an increase would harm the economy as it begins to recover from deflation.
- The Nikkei falls 2.1% while the dollar drops 0.2% vs the yen following the remarks. A lack of clarity about when the Fed might start tapering is also hurting the dollar.
- Japan ETFs - Stocks: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS. Bonds: JGBT, JGBL, JGBS, JGBD. Currency: FXY, JYN, YCL, YCS
Tuesday, Aug 137:29 AMJapan considers corporate tax cut (as it boosts the sales tax)
Tuesday, Aug 137:29 AM| 1 Comment
- The yen falls sharply vs. the greenback with dollar/yen +1.1% to ¥98.00 following a report Shinzo Abe's government is considering a corporate tax cut.
- The idea to cut the corporate tax comes as the government increasingly looks to be moving forward with a big hike in the national sales tax - a momentum-killer for the Japanese economy on more than one occasion throughout these two lost decades. A note from JPMorgan this morning has that desk believing the boost will go through as expected, with a final decision coming in October.
- FXY -0.6% premarket. Other yen ETFs: YCL, YCS, JYN.
- The news also boosted stocks, with the Topix climbing 2%. Even after struggling for the last quarter, the Topix is 35% higher on the year. It trades at 1.2x book value compared to 2.5% for the S&P 500 and 1.7% for the Stoxx Europe 600.
- DXJ +0.4%, EWJ +0.7% premarket. Other equity ETFs: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS.
- JGB ETFs: JGBT, JGBL, JGBS, JGBD.
Monday, Aug 122:58 AMMore on Japan Q2 GDP: weak capex drags on growth
Monday, Aug 122:58 AM| 1 Comment
- Capital expenditure unexpectedly fell for the sixth consecutive quarter, dropping 0.1% on quarter vs consensus of +0.7.
- Private consumption +0.8% vs forecasts of +0.5%, boosted by spending on food, travel and consumer electronics.
- External demand contributed 0.2 percentage point to growth and domestic demand 0.5 point.
- The worse-than-expected GDP has intensified the debate about a proposed increase in sales tax. "There is no need to raise the sales tax in a hurry," says Koichi Hamada, a key adviser to Prime Minister Shinzo Abe. Doing so "as scheduled might hurt the economy."
- ETFs - Stocks EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, DXJS, JPNS. Bonds: JGBT, JGBL, JGBS, JGBD. Forex: FXY, JYN, YCL, YCS
Friday, Jul 267:43 AMThe yen (FXY) gains 0.7% - dollar yen falling to ¥98.59 - after Japanese inflation rose 0.4% in June, the sharpest rise since June 2008, fueling ideas the BOJ's stimulus "may be working," says Credit Agricole FX chief Yuji Salito. If it is working now, that means less of it in the future, and the Nikkei tumbles 3%. EWJ -1.6%, DXJ -1.8% premarket. |Friday, Jul 267:43 AM| 1 Comment
Tuesday, Jul 28:38 AMA big rip in dollar/yen sends that pair above ¥100 for the first time since the start of June. The bounce in dollar/yen - which fell as low as ¥94 mid-month - comes alongside a big rebound in the Nikkei, up about 16% from the June low. FXY -0.6%, EWJ +0.9%, DXJ +1.4% premarket. |Tuesday, Jul 28:38 AM| 1 Comment
Monday, Jun 248:25 AMBOJ Deputy Governor Kikuo Iwata - a forceful proponent of monetary ease - says the bank has no plans to step in over temporary market turbulence and would only consider additional easing were there a long-term decline in price expectations. Remember the central bank drill: Talk tough, talk tough, cave. EWJ -3.4, DXJ -3.6% premarket. The yen (FXY) is weaker by 0.4%, dollar/yen at ¥98.22. |Monday, Jun 248:25 AM| Comment!
Tuesday, Jun 1812:20 PMThe speculative phase of the rally in Japanese stocks is over, says Deutsche, setting up the next leg which will require the participation of domestic investors. Yes, underweight global equity funds may help, but they've already boosted stakes and have just $2T in assets compared to $9T of Japanese household cash. DXJ +3.1%, EWJ +2.3%. |Tuesday, Jun 1812:20 PM| 1 Comment
Saturday, Jun 1510:48 AMSome color and context from Nomura's highly publicized Nikkei 18K call: The bank's strategists "do not brush off recent stock market turmoil lightly" and note that a close below Nikkei 12,362 may be particularly significant. The bank's forecast is based on the idea that earnings are recovering and global P/Es are expanding. Japanese stocks (EWJ, DXJ) are "once again trading at lower P/E ratios than U.S. stocks," the bank notes, adding that "if the average P/E ratio of U.S. stocks rises to 16x around H2 … Japanese stocks' P/E ratio could rise to 17x." |Saturday, Jun 1510:48 AM| 2 Comments
Thursday, Jun 133:21 PMAbenomics and the direction of the yen get a lot of attention, says fund manager Rajiv Jain, but don't forget how dependent businesses are on China. He's having a hard time finding Japanese firms with sustainable growth. "These are some phenomenal companies there, but (we've found) better opportunities elsewhere." Artisian's Mark Yockey goes further: "Desperate people do desperate things, and Japan is in a desperate situation." |Thursday, Jun 133:21 PM| 1 Comment
Thursday, Jun 1311:07 AMThumbing its nose at the recent collapse in the Nikkei, Nomura boosts its year-end target for the index to 18K from 16K. "The full impact of Abenomics on capex and household incomes has yet to be felt." Among the individual stocks set to benefit are Toyota (TM) and Honda (HMC). |Thursday, Jun 1311:07 AM| 2 Comments
Wednesday, Jun 1210:20 PM
Tuesday, Jun 112:55 PMThe yen (FXY +2.9%) spikes higher, bringing dollar/yen back below ¥96 amid rumors of busted carry trades and hedge fund liquidations. Should today's move be sustained, it would be the largest single-day drop for the pair since the 2010 flash crash. BofA's MacNeil Curry suggests the next stop in ¥91. Japan stock ETFs take it hard: The iShares Japan Fund (EWJ -2%), WisdomTree's Hedged Equity Fund (DXJ -4.9%). |Tuesday, Jun 112:55 PM| 1 Comment
Sunday, Jun 99:58 PMJapan revises Q1 GDP up to 4.1% (annualized) from an initial reading of 3.5% sending the Nikkei (EWJ, DXJ) up 3% in early trading. Also helping Japanese stocks is the weak yen (FXY), down 0.4% against the dollar to ¥97.95. Meanwhile, the BOJ begins a two-day policy meeting. Goldman's advice: Initiate "long positions in Nikkei September futures with a target of 14,500 and a stop on a close below 12,700." For what it's worth. |Sunday, Jun 99:58 PM| 6 Comments