The Bank of Japan raised its growth forecast for next year on optimism the economy will bounce back on reconstruction work and restored power supplies after factory output dropped by a record in March.
Japan is likely to see a rebound in the second half of this year after a blow that will be determined by the magnitude of electricity disruptions caused by the earthquake and tsunami, a survey of economists showed.
Brazil’s real posted its longest losing streak in eight weeks after Finance Minister Guido Mantega raised taxes on foreign inflows for the second time this month to prevent appreciation and protect exports from what he called a global “currency war.”
Japanese bonds fell, pushing 10-year yields back over 1 percent, as demand for debt waned at an auction today and on speculation a government led by Ichiro Ozawa would increase debt-fueled spending programs.
China went from scooping up the most Japanese debt in a year to selling the most, exiting the world’s lowest yields as forecasters expect the yen to retreat further from the 15-year high seen in November.