Japan’s companies stockpile of cash reached a record in the first quarter as they poured investment abroad, underscoring Prime Minister Shinzo Abe’s challenge to boost the nation’s investment and wages.
Wall Street banks, buoyed by record stock-market prices and high-yield bond issuance, probably will report a jump in second-quarter trading and investment-banking revenue from the same period a year ago.
Activist Daniel Loeb took his team to Japan in April 2012 to determine if the world’s third-largest economy was ready for investment. The central bank had set a new 1 percent inflation goal, an encouraging step in a country where growth had stagnated for two decades.
Japanese Prime Minister Shinzo Abe’s pledge to end 15 years of deflation has prompted the nation’s biggest banks to raise mortgage rates, mobilizing people like Karin Abe to buy a home four years earlier than he had planned.
The yen rallied the most since July 2009 amid the highest volatility in a year as investors reassess the Bank of Japan’s monetary stimulus measures that pushed the currency to a four-year low last month.
U.S. stocks fell for the week, sending benchmark indexes lower for the third time in four weeks, as investors speculated whether the Federal Reserve will signal a reduction of stimulus efforts after its next meeting.