Japan: Trade to disappoint even though the BoJ is likely to expand policy - TDS

Research Team at TDS, notes that the Japan’s trade data released for June showed exports fell for the 9th straight month (-7.4% vs –11.3% exp) and imports dropped (-18.8% vs a -20% forecast decline).

Key Quotes

“It was a good outcome considering Yen strength, beating street forecasts for a deeper deterioration.

Bloomberg’s survey shows 32 of 41 analysts expect the BoJ to expand policy, the highest percentage of respondents in any poll since Kuroda’s first decision more than 3 years ago. TD expects a disappoint trade to follow even though the BoJ is likely to relay stimulus is more likely down the track, sometime in Oct, when the final budget should be nutted out.”