A Close Look At Monday’s Key Market Events
$EWJ, $DXJ, $NKY
At the weekend Japan released its preliminary report for January industrial production and it may make a difference in moving capital markets Monday morning.
I. Japan’s Industrial Production Report for January came out Sunday, 28 February at 6:50p EST
Note: Japan’s January Industrial Production +3.7% M-M (expected 3.3%; last -1.7%)
January Retail Sales -0.1% Y-Y (consensus 0.5%; last -1.1%), and January Housing Starts +0.2% Y-Y (consensus –0.2%; last -1.3%)
Why it is important
- This report will help fuel expectations for Japan’s Q-1 GDP growth
- Industrial production declined in both November (-0.9%) and December (-1.7%). A 3rd straight decline in industrial production will fuel market concerns about an economic slowdown in Japan.
- The results of this report will help drive market expectations with respect to the Bank of Japan’s policy course
- Another disappointing report will fan worries about a spillover/contagion effect in the region that could have global ripple effects. An uplifting report could temper those concerns near term.
A closer look
What is in play?
- iShares MSCI Japan ETF (EWJ)
- Japan Hedged Equity Fund (DXJ)
- Currency Hedged MSCI japan ETF (HEWJ)
- MSCI Japan Hedged Equity Fund (DBJP)
- MAXIS Nikkei 225 Index Fund (NKY)
- iShares China Large-Cap ETF (FXI)
- ProShares UltraShort FTSE China 50 (FXP)
- iShares MSCI South Korea Capped ETF (EWY)
- MSCI Australia ETF (EWA)
- iShares MSCI Singapore ETF (EWS)
- MSCI All Country Asia, ex Japan, Fund (AAXJ)
Japanese Government Bonds
II. Economic Reports
Monday the economic reports to the market include: Chicago PMI for February (consensus 52.0) and Pending Home Sales for January (consensus +0.7%) will be released at 9:45a EST and 10:00a EST, respectively.
III. Earnings Reports
Have a terrific week.