The S&P Australia 200 plunged by 1.84% just in the first week of 2023. South Korea’s Kospi also fell by 1.6% after shedding around 0.5% Monday. While Kosdaq shed 1.05%. Furthermore, Hong Kong’s Hang Seng Index losses to trade 0.15% higher. Shanghai Composite rose by 0.16% on the mainland. These all tell that markets in the APAC encountered massive losses in the first week of trading. Further report views the Bank of Japan considers elevating the inflation forecast in January. This is in order to move closer to the central bank’s target for as much as 2% in fiscal 2023 and 2024.
Then, the Japanese yen traded at 130.92, it was the strongest level in August but weakened later against the U.S. dollar. Beyond APAC, major indexes in the U.S. closed 2022 with the biggest loss since 2008. The S&P 500 plunged 19.4% last year, Nasdaq fell by 33.1%, then the Dow closed 8.8%. While the Shenzhen Component gained 0.65%, Shanghai Composite in mainland increased by 0.67%. The following managers’ index like the Caixin presented more declines in the factory. Based on the news, it was due to the Covid infections.
Based on the survey, business confidence improved for the highest since February last year. In a speech, Governor Haruhiko Kuroda argued that the Bank of Japan decided to widen the band of yield target. The purpose is to ease the implementation of sustainable monetary policy. He continued that inflation was slowing down under the bank’s target of 2% due to the soaring import cost trade.
