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South China Morning Post (May 25)

2023/ 05/ 26 by jd in Global News

Several factors help explain “the outperformance of Japanese shares.” Improved corporate governance and the end of deflation are important, but “the explanation with the most resonance for investors is Japan’s role as a safe haven in an increasingly risky world. This has taken on added significance because of concerns about the deepening geopolitical rift between the US and China, as well as economic and regulatory risks in China itself.” Japan boasts “the only market in Asia big and liquid enough to offer an alternative to China while still providing exposure to the reopening of its economy.”

 

Financial Times (December 10, 2013)

2013/ 12/ 12 by jd in Global News

“South Korea was one of the only winners in the summer’s emerging market sell-off, sparked by fears about the outlook for US monetary policy.” In search of a safe haven, foreign buyers poured into South Korea, but now they are pouring out in favor of more promising markets. “Caught between Japan’s fresh Abenomics-fuelled rally and reform-gripped China, South Korea looks in need of a new narrative.”South Korea, Emerging markets, Sell-off, Outlook, U.S., Monetary policy, Safe haven, Foreign buyers, Abenomics, Rally, Reform, China, South Korea

 

Financial Times (October 8)

2012/ 10/ 09 by jd in Global News

“The Federal Reserve’s new round of quantitative easing may stall the dollar’s long term appreciation but it will not reverse it.” The dollar is being driven higher by four fundamentals: 1). The growing U.S. economy 2). The safe-haven status of U.S. bond markets 3). The shale gas revolution reducing U.S. dependence on imported energy 4). The determination of other central bankers not to let their national currencies appreciate. QE3 merely “presents headwinds to the dollar’s favourable fundamentals.”

 

The Economist (November 23)

2011/ 11/ 25 by jd in Global News

“What safe haven?” As worries spread, the entire Euro zone looks increasingly tainted. “There is an awful sense of a slow motion disaster in the markets at the moment, with every day bringing some herald of bad news.” The latest bad news involved Germany. Once considered a safe haven, Germany was only able to auction €4 billion of a planned €6 billion bund sale.

“What safe haven?” As worries spread, the entire Euro zone looks increasingly tainted. “There is an awful sense of a slow motion disaster in the markets at the moment, with every day bringing some herald of bad news.” The latest bad news involved Germany. Once considered a safe haven, Germany was only able to auction €4 billion of a planned €6 billion bund sale.

 

The Economist (September 3)

2011/ 09/ 04 by jd in Global News

Japan’s not alone in living with an overvalued currency. The commodities “boom has lifted the Australian dollar by more than 43% since the start of 2009” and “pushed up Brazil’s real by even more.” Switzerland escaped this boom, but it’s blessed (or cursed) “with a commodity prized more than iron ore or soyabeans in uncertain times: safety.” As a result the Swiss franc has shot upward. Policymakers in all three countries are concerned, but efforts to weaken their currencies have born little fruit. “Instead of trying to prevent a rise in the currency, countries can, of course, learn to live with it.”

 

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