Next Bank of Japan Governor to Face Ultra-loose Monetary Policy Pivot

Arjun Pandit
10 Feb, 2023
Mumbai

Asian markets closed mixed and market indexes in China dropped on the worries of slower economic recovery. 

Japan is set to appoint the next central bank chief and investors welcomed stronger earnings from electronics equipment makers and industrial companies. 

 

Next BoJ Governor Nomination Moves Forward 

Stocks in Tokyo traded higher after a string of positive earnings supported the advance ahead of the nomination of candidates for the Bank of Japan governors. 

Prime Minister Fumio Kishida is expected to recommend Kazuo Ueda as the next Bank of Japan governor, according to the state controlled television broadcaster NHK. 

Prime Minister Kishida is scheduled to make the Cabinet's recommendation on Tuesday and seek approval from both chambers of the National Diet.  

The Nikkei 225 average increased 0.3% to 27,670.98 and the yen weakened to 131.78 against the U.S. dollar. 

 

China Inflation Data Suggested Slower Consumer Recovery 

Market indexes in China dropped sharply after consumer and wholesale price inflation showed weaker-than-expected rebound in consumer spending. 

Consumer prices rose 2.1% in  January from 1.8% in December, the National Bureau of Statistics reported Friday. 

Wholesale prices declined at a faster pace of 0.8% in January from 0.7% in December. 

The weaker-than-anticipated inflation data suggested slower recovery in consumer spending after three years of "zero-Covid" lockdowns. 

Investors are worried that stretched consumer finances and uncertain jobs market and slowing exports may contribute to slower consumer demand revival.   

The Shanghai Composite Index declined 0.3% to 3,260.67 and the Hang Seng index dropped 2% to 21,190.42. 

The Sensex index decreased 0.2% to 60,682.70 and the Nifty index declined 0.2% to 17,856.50. 

The Indian rupee closed higher to 82.46 against the U.S. dollar and the yield on 10-year Indian government bonds inched higher to 7.36%.