Bank of Japan Governor Haruhiko Kuroda’s stimulus policies pushed bond yields above analyst forecasts for the first time since at least July as the widest price swings in a decade halted two debt offerings.
The yen’s weakening toward 100 per dollar has forced investors to redo their math on Japan’s corporate earnings, prompting them to recommend buying shares that are the priciest relative to bonds in two years.
Jun Azumi, a lawmaker from Japan’s devastated northeast, will become the nation’s eighth finance chief since 2008, tasked with funding earthquake reconstruction and securing a recovery endangered by a soaring yen.
Japan’s trade deficit swelled to a record 1.63 trillion yen ($17.4 billion) on energy imports and a weaker yen, highlighting one cost of Prime Minister Shinzo Abe’s policies that are driving down the currency.
Japan’s large manufacturers became less pessimistic as declines in commodity prices aided profitability, boosting the outlook for the world’s third- biggest economy even as a stronger yen crimps exports.