- Japan’s bear market has shifted, showing optimism in the yen’s strength against currencies like the dollar, pound, and franc, with an 8% increase confirmed against the Swiss franc.
- Today at 5 PM Tokyo time, Japan’s Prime Minister and the Governor of the Bank of Japan, Ueda, are set to meet.
- Westpac is aiming for long-term targets of EUR/USD at $1.22 and GBP/USD at $1.41.
- China is sending a “national team” of investors to step in and manage selling pressures on soaring AI stocks.
- A junior coalition leader in Japan is supporting a suspension of food tax while defending the independence of the Bank of Japan.
- Singapore reported a 9.3% rise in exports for January, but it still fell short of expectations amidst uneven trade recovery.
- Japan’s GDP growth for the fourth quarter was just 0.2% annually, which was below expectations; the Bank of Japan continues to tread cautiously.
- The economic growth rate for Japan in the fourth quarter of 2025 turned out lower than anticipated.
- Investors are feeling fairly positive about China’s tech and housing strategies as the Lunar New Year approaches.
- Westpac mentioned that the resilience seen in the US could push back the Federal Reserve’s final rate cut to June 2026.
- This weekend, the US has embarked on a second oil tanker linked to Venezuela, sailing through the Indian Ocean.
- The IMF noted that Australia has managed a soft landing but still cautioned about inflation risks and the need for fiscal tightening.
- New Zealand’s card spending in January sent mixed signals about consumer demand.
- While New Zealand’s services sector expanded in January, the momentum seems to be slowing down.
- Xi Jinping is working to boost domestic demand in China as global trade uncertainties rise.
- Forex market opening prices are set to fluctuate on Monday, February 16, 2026.
- Looking forward this week on Newsquawk: key reports on US PCE and GDP, FOMC Minutes, RBNZ decisions, along with the UK and Canadian CPI data.
Trading activity in Asia has tapered off as mainland markets remain closed for the Lunar New Year holiday in China.
In the US, with markets closed for President’s Day, the Securities Industry and Financial Markets Association (SIFMA) recommended a halt to bond trading.
Data from New Zealand indicates that retail sales are showing signs of fragility just before this week’s Reserve Bank of New Zealand meeting.
The fourth-quarter GDP figures from Japan were disappointing, showing an annual growth of only 0.2% and a sequential increase of just 0.1%.
Following the GDP report, the yen weakened, and Prime Minister Takaichi’s meeting with Bank of Japan Governor Ueda is being closely watched.
On the first day of China’s Lunar New Year holiday, trading across Asia was quiet, with market closures extending to Singapore and Hong Kong as well. The US President’s Day holiday compounded the reduced trading volume, resulting in US stock markets being closed and a recommendation for a complete cessation of dollar bond trading.
With the Reserve Bank of New Zealand’s monetary policy decision anticipated to remain unchanged, recent data has highlighted that consumer demand still appears weak.
Japan’s fourth-quarter GDP growth was lower than expected, only at 0.2% year-over-year and 0.1% from the previous quarter. There was a slight uptick in personal consumption and capital investment, but exports took a hit, declining by 0.3%. Inflation pressures remain significant, prompting the Bank of Japan to adopt a cautious approach to policy normalization.
Today’s meeting between Prime Minister Sanae Takaichi and Bank of Japan Governor Kazuo Ueda at 5 PM Tokyo time is, understandably, drawing attention from the markets, especially after the weak GDP numbers prompted a modest depreciation of the yen.
Across the foreign exchange market, major currency pairs have maintained relative stability, despite the lower liquidity levels.
Regional stocks have largely held onto their recent gains, yet the weaker economic data from Japan seems to be dampening the previous momentum.
In other news, Japanese media has reported that Starbucks Korea plans to open at least 100 new locations this year.
