Coupland Cardiff's Aston: Slowdown in global growth more relevant to Japan than trade war

Stronger yen a risk

Foreign investors have consistently sold Japanese equities since the beginning of the year, reflecting concerns over global economic growth, the pace of US interest rate rises and the re-emergence of the land sale scandal in which Ministry of Finance officials and leading politicians, including the Prime Minister, have been implicated.

Equity markets reacted negatively to the announcement in early March by President Donald Trump of his intention to impose import tariffs on steel and aluminium, as well as further plans to broaden this to other products imported from China, such as heavy machinery, aircraft parts, semiconductors and more.  China has retaliated by imposing duties on a number of US goods - this has escalated the situation and justifiably raised concerns about its impact on global economic growth.  The higher risk sentiment saw the dollar weaken (or yen strengthen further) and raised questions about the ...