Following the huge losses on the Nikkei, with more than $700 billion dollars wiped off the Japanese market in just two sessions, one economist is predicting the tragic events in Japan will be an "excuse" 'to move to quantitative easing in all major markets.
It is worth remembering that it is only a matter of weeks ago since Standard & Poor's cut Japan's sovereign debt rating by one notch to AA- (the first cut since 2002), saying that the government lacked a "coherent strategy” for dealing with its growing debt burden.
Japanese markets are behaving consistent with recent post-disaster pattern: a lower stock market, lower government bond yields and a mixed outcome for the currency.
PIMCO CEO Mohamed El-Erian shared his thoughts on Japan's economy, following the tragic earthquake and tsunami that hit that nation Friday. El-Erian wrote that five factors will dominate the economic outlook, as the whole world is hoping the tragedies will soon give way to stories of rescues and recovery of a society that is suffering enormous pain and disrupting uncertainties.
As damage estimates rise in Japan, investors are reassessing their initial bullish views on the yen.
The yen is stable for now after moves by the Bank of Japan, and the dollar is depressed by OPEC selling — it's time for your FX Fix.
The yen has been trading violently against major and minor crosses, which, of course, is to be expected. But, what’s unexpected to some is the subsequent dollar weakness.
While the world has fallen out of love with the Japanese economy in recent years it remains an economic powerhouse and important to the global economy, Sean Corrigan, chief investment strategist at Diapason Commodities Management, said Monday.
Oil prices are driven by a supply shock rather than increased demand due to a stronger world economy, so investors in currencies look to "risk" rather than "macro" factors, David Bloom, global head of foreign exchange research at HSBC, wrote in a market note.
After sinking initially on reports of the massive quake, the yen rallied strongly. Here's how you can trade it now.
The economic impact from the tsumani that slammed into eastern Japan following one of the largest earthquakes ever recorded, 8.9 magnitude, will be felt in the near future, Sean Egan, founder partner and president of Egan-Jones Ratings Company, told CNBC on Friday.
While commodity and currency markets took the biggest immediate hit from Friday's earthquake and tsunami in Japan, the damage will be felt throughout the world's economy and the US.
Discussing whether the earthquake in Japan will expedite the country's looming debt crisis, with Sean Egan, Egan-Jones Ratings Company, and the Strategy Session team.
The yen plummeted and then rocketed higher after a massive earthquake and tsunami struck Japan early this morning, and traders expect plenty of choppiness as the day unfolds.
The massive earthquake that hit Japan came just before the close of Japan's stock market Friday. The Nikkei finished at a five-week low, down 1.7 percent, and Nikkei futures moved lower after the close. Here are some Japanese ADRs and ETFs to watch.
Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.
The 8.9 magnitude earthquake that hit Japan Friday will likely dent investor confidence in the short term, but is unlikely to derail the global economic recovery, analysts told CNBC.
There is an ongoing healthy debate about how much we should stick to principle and how much continued state intervention there needs to be as the global economy recovers, writes Moorad Choudhry.
The yen move is more "happenstance" than anything else, and indeed appears to be generally as overlooked as the fact that the Chinese yuan has appreciated 4.7 percent since July 2010.
The dollar has further to fall, says David Skarica, author of "THE GREAT SUPER CYCLE: Profit from the Coming Inflation Tidal Wave and Dollar Devaluation." But the long-term outlook for the yen is rosier - and there is China.