Asian stocks rose for the first time in four days after better-than-forecast growth in U.S. jobs and Chinese exports boosted investor confidence that cuts to Federal Reserve stimulus won’t derail the global economic recovery.
Honed by 15 years of falling consumer prices that burnished the appeal of fixed-income assets in Japan, the Asian nation’s bond buyers are amassing long-term Treasuries as disinflation emerges in the U.S.
Japanese Prime Minister Shinzo Abe urged companies to increase wages faster than gains in the cost of living to break the legacy of 15 years of deflation, and praised Toyota Motor Corp. and Hitachi Ltd. for pledging to help.
The yen will rally to 100 per dollar in the first half of next year because the Bank of Japan won’t be able to expand monetary easing by enough to repeat this year’s success, a former central bank official said.
Asian stocks fell this week, with the regional benchmark gauge declining the most since August, amid concern improving U.S. economic data will spur the Federal Reserve to pare stimulus as soon as this month.
The world’s biggest retirement fund needs to cut local debt holdings now because Japan’s government will follow an advisory panel’s recommendation that the wealth manager seek higher returns, the panel’s head said. Bonds fell.
Japan’s economy chief will undergo surgery for cancer as soon as next week, casting a cloud over the future of a politician charged with crafting plans to revamp industrial regulation and liberalize trade rules.
The Bank of Japan’s unprecedented monetary easing will fail in its goal of spurring 2 percent inflation, according to Takahiro Mitani, president of the fund that manages the world’s largest pool of pension savings.