Tokyo remains positive despite recent history

Despite the recent hike in the short term money rate by the Bank of Japan and weak stock markets at the end of February, the long term outlook for the Tokyo market looks positive on the back of exports remaining strong, consumer spending rising and the economy expanding. The Bank of Japan raised the short term money rate by 0.25 to 0.5% in January, but this seem to have had little impact on long term rates, with the bell weather 10-year Government bond continuing to trade at around 1.7%. We would expect the Bank of Japan to raise the rate one or two more times this calendar year and, ther...