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Japan’s Topix Index Edges Toward Highest Level Since 1990
Japan’s Topix rose, edging toward its highest close since August 1990, as foreign buying and locally driven corporate governance improvements support stocks near levels not seen since the nation’s bubble economy burst.
The benchmark climbed as much as 0.6% to 2,109.21, coming within 1% of surpassing its previous peak reached in September 2021. The Topix is beating the S&P 500 this year on further tailwinds from a resumed weakening of the yen amid the Bank of Japan’s continued easy-money policy, and solid earnings at companies focused on domestic demand. (BoJ was buying own debt to close out last month and drop the yield of the JGB 10y to below it's threshold level of .50%…currently sitting on .40%) cap #3
https://tradingeconomics.com/japan/government-bond-yield
Warren Buffett’s renewed endorsement of Japanese stocks has provided hope that foreign investment is returning. Overseas traders bought a net $22 billion worth of the nation’s stocks and futures in April, amid record levels of inflows. At the same time, a flurry of buybacks is supporting sentiment after the Tokyo Stock Exchange called on companies that are trading below book value to outline capital improvement plans. Mitsubishi Corp. said on May 9 that it plans to buy back up to $2.2 billion worth of its shares and last month, information-technology firms Hitachi Ltd. and Fujitsu Ltd. announced sizable repurchases.
Sub-gauges tracking firms ranging from steelmakers to airlines are higher this year as investors pick up shares with low valuations and the possibility of improved governance. Even beer stocks are attracting renewed attention on prospects of price hikes, more favorable taxation and a rebound in tourism.
https://www.bnnbloomberg.ca/japan-s-topix-index-edges-toward-highest-level-since-1990-1.1920119
China-Central Asia summit, Grab results, G-7 summit in Hiroshima
Japan will host the Group of Seven summit from Friday to Sunday in the western city of Hiroshima, the site of the first atomic bombing during World War II and Prime Minister Fumio Kishida's home city.
Before the summit, Canadian Prime Minister Justin Trudeau will pay an official visit to South Korea. While in Asia, he is expected to promote his country's new Indo-Pacific strategy, which is more assertive on China. This comes after the two countries became embroiled in a diplomatic row last week by expelling each other's diplomats. On the corporate front, Japan's three megabanks will report earnings on Monday, followed by some of the region's major e-commerce companies, including Grab, Sea and Alibaba, later in the week. G-7 leaders will gather in Hiroshima for a three-day summit starting May 19. Japan will host the Group of Seven summit from Friday to Sunday in the western city of Hiroshima, the site of the first atomic bombing during World War II and Prime Minister Fumio Kishida's home city.
Before the summit, Canadian Prime Minister Justin Trudeau will pay an official visit to South Korea. While in Asia, he is expected to promote his country's new Indo-Pacific strategy, which is more assertive on China. This comes after the two countries became embroiled in a diplomatic row last week by expelling each other's diplomats.
On the corporate front, Japan's three megabanks will report earnings on Monday, followed by some of the region's major e-commerce companies, including Grab, Sea and Alibaba, later in the week.
MONDAY
IMF officials hold news conference in Sri Lanka
IMF officials visiting Sri Lanka from May 11 to 23 are due to brief the media on the country's progress in turning its economy around after its debt default last year. The fund approved a bailout worth about $3 billion for the troubled Indian Ocean nation in March, and the delegation is conducting a checkup ahead of the first review of the loan program in September.
China sends special envoy to Ukraine
China's special envoy for Eurasian Affairs Li Hui starts a trip to Ukraine, Poland, France, Germany and Russia. Beijing said on May 12 the visits are to "communicate with all parties on the political settlement of the Ukrainian crisis." Li was China's ambassador to Russia for a decade till 2019. Such a trip was first mentioned during Chinese President Xi Jinping's phone call with Ukrainian President Volodymyr Zelenskyy last month.
Earnings: Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial Group
TUESDAY
Trudeau visits South Korea
Canadian Prime Minister Trudeau will visit South Korea and hold a summit with President Yoon Suk Yeol. The two leaders are expected to discuss cooperation on trade and secure supply chains. Trudeau will remain in East Asia to attend the G-7 summit and will be promoting his country's new Indo-Pacific strategy, which involves investments meant to compete against China for influence in the region.
Liz Truss in Taipei
Former U.K. Prime Minister Liz Truss embarks on a tour to Taiwan, becoming the first former U.K. leader to officially visit Taiwan in decades. Her trip will involve meetings with top officials of the Taiwanese government. The U.K. and Taiwan do not have formal diplomatic recognition with each other but have deepened political and defense ties in the face of Chinese aggression.
China economic data
China will release data on industrial production, investment and retail sales for April. The country is experiencing a slow economic recovery despite last year's low base, mainly due to the global slowdown and ongoing geopolitical tensions.
Earnings: Sea, Baidu
https://asia.nikkei.com/Spotlight/Your-Week-in-Asia/China-Central-Asia-summit-Grab-results-G-7-summit-in-Hiroshima