Uchida Shinichi: BOJ Won't Raise Rates when Markets Are Unstable

Remarks of Officials

Central Bank

Summary:

On August 7, Bank of Japan (BOJ) Deputy Governor Uchida Shinichi said that the BOJ will not raise interest rates when financial and capital markets are unstable and it needs to maintain monetary easing.

At 9:30 a.m. on August 7, BOJ Deputy Governor Uchida Shinichi held a press conference, and his main points are as follows:

Japan's economy is recovering moderately, although some areas remain weak. In retrospect, the economy continued to grow at a high rate in the first half of 2023, reflecting the normalization of economic activity after the COVID-19 pandemic. The growth rate then turned temporarily negative, partly due to the shutdown of production by some car manufacturers, but the improving trend has continued. The economy is expected to keep growing at a rate above potential.

It is likely that labor shortages will persist, leading to a rise in wages. As a result of irreversible and structural demographic changes in Japan, the gap between the working-age population and the number of employed persons has since narrowed rapidly and now stands at around 6.5 million. The room for additional labor supply will be further limited.

The CPI growth rate, despite some oscillations, eased slightly. The latest figure for June stands at 2.6 percent. Looking at the breakdown, the contribution of food products and that of other goods have continued to be affected by a pass-through to consumer prices of cost increases led by the past rise in import prices. With these pass-through effects waning, however, the positive contributions of food products and other goods have decreased moderately. While price increases led by the rise in import prices have waned, wage increases have been increasingly reflected in prices.

As for the outlook, the year-on-year rate of increase in the CPI for all items excluding fresh food is likely to be 2.5 percent for fiscal 2024 and thereafter is projected to remain at around 2 percent for fiscal 2025 and 2026.

At the Monetary Policy Meeting (MPM) held last week, the BOJ decided to raise its short-term policy interest rate by 0.15 percentage points, the second year that this rate stayed above 2%. Import prices turn positive on an annual basis, reflecting the depreciation of the JPY. Therefore, the BOJ confirmed that keeping the policy rate at 0.25 percent will be better than leaving it between 0 to 0.1 percent.

Maintaining the easing policy is necessary. If the outlook, the upside and downside risks to the outlook, or the likelihood of realizing the outlook change as a result of these market developments, the path of the policy interest rate will certainly change. Therefore, the Bank of Japan will not raise its policy interest rate when financial and capital markets are unstable.

Uchida Shinichi's Press Conference

Risk Warnings and Disclaimers

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Warren Takunda

Stocks

London stocks were set to rise again on Wednesday following positive US and Asian sessions.

The FTSE 100 was called to open around 100 points higher.

Stephen Innes, managing partner at SPI Asset Management, said: "Asia-Pacific markets bounced back impressively on Wednesday, catching a wave from Wall Street’s rally that ended a tense three-day losing streak. The market mood seems as changeable as the weather, with a dramatic shift sparked by a major rally in Japanese stocks on Tuesday.

"The Nikkei 225, behaving much like a phoenix rising from the ashes, soared by an impressive 10.2- marking its best performance since the heady days of October 2008. This came just a day after the index experienced its most chilling plunge since 1987, nosediving by 12.4% due to deepening recession worries.

"On Wednesday, Bank of Japan Deputy Governor Uchida Shinichi took to the stage, not to announce a magic show but to reinforce that the central bank’s monetary easing will stay the course amid the rollercoaster ride in global financial markets. His reassurance acted like a financial security blanket, calming jittery markets and effectively signalling continued protective intervention."

On home shores, investors were mulling the latest data from Halifax, which showed that house prices rose in July after three flat months.

Prices were up 0.8% on the month, coming in comfortably ahead of expectations for 0.3% growth.

On the year, house prices rose 2.3% in July following a 1.9% increase in June. This marked the highest annual growth rate since January 2024.

The average house price stood at £291,268 compared to £289,042 in June.

Amanda Bryden, head of mortgages at Halifax, said: "Last week’s Bank of England’s Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder. However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.

"Against the backdrop of lower mortgage rates and potential further Base Rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year."

In corporate news, financial services and asset management group Legal and General reported flat interim core operating profit, in line with expectations.

The company said profit for the half rose 1% to £849m, adding that it expected 2024 core operating earnings to grow by mid-single digits year-on-year. It also lifted its interim dividend by 5% to 6p a share.

Property portal Rightmove announced that it is recruiting an internal replacement for its outgoing chief financial officer.

Alison Dolan, who announced in May that she was jumping ship to join Marks & Spencer, will be succeeded by Ruaridh Hook, currently head of commercial finance and financial planning and analysis. Hook, who has been in that role since 2020, joined Rightmove back in 2016.

Glencore posted a sharp decline in operating and net profits at the half-year stage, but sounded an optimistic note on the outlook for shareholder returns.

The natural resource outfit reported a 9% rise in revenues to approximately $117.1bn. Yet adjusted operating profits shrank by a third in EBITDA terms to $6.3bn. The company also swung to a net loss of $233m from a profit of $4.6bn one year before. That was partly the result of $1.7bn of significant items. Even so, net debt reduced by $1.3bn to $3.6bn.

Chief executive officer Gary Nagle also noted the annualised free cash flow generation of about $6.1bn during the period. Nagle said that it "augers well for potential top-up shareholder returns, above our base cash distribution, in February 2025."

Source: ShareCast

Risk Warnings and Disclaimers

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Samantha Luan

Stocks

Economic

Bank of America says the recent stock market sell-off is unlikely to be the start of a new bear market.

Credit markets remain stable, and only three of 10 signals of a market peak have flashed.

"Several of our sentiment signals suggest that sentiment did not hit euphoric levels typically seen at the end of bull markets," BofA said.

The stock market's recent sharp sell-off is unlikely to transform into a full-fledged bear market, according to Bank of America.

The S&P 500 fell as much as 8% since its record high in July, while the Nasdaq 100 plunged more than 10%. The sell-off was driven by a weak July jobs report, the unwind of the yen carry trade, and concerns of an imminent recession.

But according to Bank of America strategist Savita Subramanian, the tell-tale signs of a stock market peak have yet to materialize.

Instead of this being a stock market peak that's on the precipice of a massive drawdown, it's more than likely just a typical correction that occurs on average every single year.

For perspective, Subramanian pointed to stock market history to highlight that pullbacks in the market are common.

"5%+ pullbacks are common, occurring over three times per year on average since 1930 (this marks the second one this year after April). Larger corrections are less frequent but still common, with 10%+ corrections occurring once per year on average (the last one was in fall 2023)," Subramanian wrote in a note on Monday.

The fact that credit markets remain stable gives Subramanian confidence that the recent sell-off is a common pullback rather than the beginning of a true bear market.

"So far, credit markets are subdued with a trough-to-peak widening of 70bp for high-yield spreads through last Friday," Subramanian said.

Typically during panics that evolve into bear markets, bond investors demand a higher premium for their risky junk debt relative to Treasurys, but that has yet to materialize.

The BofA US High Yield option adjusted spread, which measures the difference in yields between junk bonds and Treasury bonds, is at just 3.93%, well below its 5.33% average since inception in 1996.

For perspective, prior stock market panics in 2020 and 2008 led the spread to soar to 9.82% and 21.82%, respectively.

"The recent spread widening can be described as normalization from extremely tight levels toward fair value. Spread widening beyond 450-475 would be concerning, according to our credit strategists," Subramanian said.

What's more, Subramanian tracks 10 signals that, when most of them flash, signals that a major stock market peak has occurred.

But as of July, just three of the 10 signals have flashed, according to the note, which was a stepdown from the 5 signals that flashed in June. Why A Full-fledged Bear Market Is Still Unlikely Even After The Latest Sharp Sell-off_1

Why A Full-fledged Bear Market Is Still Unlikely Even After The Latest Sharp Sell-off_1

"We saw a maximum of 50% of these signals triggered in June, below the average of 70% triggered in prior market peaks," Subramanian said.

The three stock market peak signals that flashed in July include the net percentage of respondents to the Conference Board survey exceeding 20 when asked if they expect the stock market to keep rising, an inverted yield curve, and tightening credit conditions based on the Senior Loan Officer Opinion Survey.

But seven other signals tied to investor sentiment, valuations, and macro data have yet to flash.

"Several of our sentiment signals, including our Sell Side Indicator, suggest that sentiment did not hit euphoric levels typically seen at the end of bull markets," Subramanian said.

Instead of preparing for a prolonged market sell-off, Subramanian recommends investors go bargain hunting and focus on buying high quality stocks.

Source:BUSINESS INSIDER

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Risk Warnings and Disclaimers

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Kevin Du

Energy

China's imports of major commodities continued to lose momentum in July, with crude oil arrivals slumping to the weakest in nearly two years, while those of iron ore, coal, copper and natural gas were largely steady.

The headline-grabber in Wednesday's official data release was the drop in crude oil imports to 9.97 million barrels per day in July, the lowest on a daily basis since September 2022.

China, the world's biggest importer of crude, has seen arrivals slump this year, with imports of 10.90 million bpd in the first seven months of the year, down 2.9% from the 11.22 million bpd over the same period in 2023.

Crude oil imports are down about 320,000 bpd in the first seven months of 2024, a figure that stands in sharp contrast to the demand growth forecasts from leading industry groups like the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

OPEC's July monthly oil market report stuck to the group's forecast that China will lead global demand growth this year, with an increase of 760,000 bpd.

The IEA's view on China is less optimistic, but the agency still expects China will account for about 40% of this year's global increase in crude demand, which equates to 388,000 bpd.

With China's imports actually falling in the first seven months of the year, it would take an extraordinary turnaround for the remaining five for the OPEC and IEA forecasts to be realised.

With crude oil imports looking anaemic, it's worth looking at imports of other major commodities.

At first glance the picture doesn't necessarily look that weak, with imports of iron ore, coal, copper and natural gas all posting increases in July from the previous month.

But convert imports to a per-day basis, and July looks considerably less impressive.

Steady Imports

Iron ore imports were 102.81 million metric tons, up 5% to the 97.61 million recorded in June, but on a daily basis July arrivals were 3.32 million tons, just higher than June's 3.25 million.

They were also in line with the 3.29 million tons per day from may, and down from the 3.39 million in April.

The overall picture for China, which buys about three-quarters of global seaborne iron ore, is that imports of the key steel raw material are steady, with little variation in recent months.

This is despite the benchmark Singapore Exchange futures price trending lower since its high so far this year of $143.60 on Jan. 3, to the close of $102.66 on Tuesday.

Imports of unwrought copper showed a similar trend to iron ore, with July arrivals of 438,000 tons being just above the 436,000 in June.

But on a daily basis July's arrivals were 14,130 tons, below the 14,530 from June.

For natural gas, imports of both liquefied natural gas and pipeline supplies in July were 10.86 million tons, which is 350,300 tons per day, while June saw arrivals of 10.43 million, or 347,700 per day.

In May, natural gas imports were 365,500 tons per day and in April they were 343,300 per day.

The one possible exception to the soft commodity imports is coal, where July imports of 46.21 million tons were the highest since December.

But even with coal, the per day figures show a relatively steady pattern, with July's 1.49 million tons being the same as for June.

May's coal imports were weaker at 1.41 million tons per day, but April's were stronger at 1.51 million.

Putting the import data together shows that arrivals of iron ore, copper, natural gas and coal have been largely steady in recent months.

Source: Reuters

Risk Warnings and Disclaimers

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Samantha Luan

Cryptocurrency

Economic

Cryptocurrency has become an increasingly popular investment and transaction medium, revolutionizing the financial landscape. As more individuals dive into the world of digital assets, understanding the tax implications becomes crucial. This article will guide you through the essentials of cryptocurrency and taxes, preparing you for the next tax season.

Introduction to cryptocurrency and taxes

Cryptocurrency has captured the interest of millions around the globe. Whether you’re trading Bitcoin, Ethereum or any other digital currency, it’s essential to comprehend how these transactions impact your taxes. The IRS has been increasingly vigilant about cryptocurrency reporting, and the rules can be complex. Let’s break down what you need to know.

Understanding the basics of cryptocurrency taxation

What is taxable?

When it comes to cryptocurrency, not all transactions are created equal. Here are the key taxable events:

Trading cryptocurrency: Converting one cryptocurrency to another.

Selling cryptocurrency for fiat currency: Converting your cryptocurrency to dollars, euros or any other government-issued currency.

Using cryptocurrency to purchase goods and services: When you use cryptocurrency as a payment method.

Mining and staking rewards: Receiving cryptocurrency as a result of mining or staking.

Each of these events can trigger a taxable gain or loss, and it’s essential to keep meticulous records.

Capital gains and losses

Cryptocurrency transactions are typically treated as capital gains or losses. Here’s how it works:

Short-term capital gains: If you hold cryptocurrency for less than a year before selling, it is subject to short-term capital gains tax, which is taxed at your ordinary income rate.

Long-term capital gains: If you hold the cryptocurrency for more than a year, it qualifies for long-term capital gains tax, which generally has a lower rate.

Cost basis

Understanding your cost basis is crucial for calculating your capital gains or losses. The cost basis is the original value of your cryptocurrency, including any fees associated with acquiring it. When you sell or trade your cryptocurrency, the difference between the selling price and the cost basis determines your gain or loss.

Key considerations for the next tax season

Recordkeeping

Accurate recordkeeping is vital. Here’s what you should keep track of:

Date of each transaction

Value of the cryptocurrency in USD at the time of the transaction

Purpose of the transaction (e.g., buying, selling, trading, receiving as income)

Costs and fees associated with each transaction

Tax forms and reporting

For the upcoming tax season, ensure you are familiar with the following forms:

Form 8949: Used to report sales and exchanges of capital assets, including cryptocurrency.

Schedule D: Summarizes your capital gains and losses.

Form 1040: You will need to answer a question about your cryptocurrency activity.

Foreign account reporting

If you hold cryptocurrency on a foreign exchange or wallet, you may need to report it under the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA).

Strategies to minimize your tax liability

Tax-loss harvesting

Tax-loss harvesting involves selling underperforming cryptocurrency assets at a loss to offset your capital gains. This strategy can reduce your overall tax liability. However, be aware of the wash-sale rule, which disallows a loss if you repurchase the same or a substantially identical asset within 30 days.

Gifting cryptocurrency

Gifting cryptocurrency can be a tax-efficient way to transfer wealth. The recipient of the gift does not incur any tax liability, and you can potentially reduce your taxable estate.

Charitable donations

Donating cryptocurrency to a qualified charity can provide a tax deduction. The amount of the deduction is generally equal to the fair market value of the cryptocurrency at the time of the donation, and you avoid paying capital gains tax on the appreciated value.

Preparing for future regulations

Stay informed

Cryptocurrency tax laws are evolving. Stay updated with IRS guidelines and any legislative changes that may impact your tax obligations.

Consult a tax professional

Given the complexity of cryptocurrency taxation, consulting with a tax professional who has experience with digital assets is highly recommended. They can provide personalized advice and ensure compliance with tax laws.

Emotional triggers and financial responsibility

The anxiety of compliance

Navigating the tax implications of cryptocurrency can be daunting. The fear of making mistakes and facing penalties can be overwhelming. To mitigate this anxiety, proactive planning and record-keeping are crucial. Utilize tax software tailored for cryptocurrency to streamline the process and ensure accuracy.

The relief of proper planning

Proper tax planning brings peace of mind. Knowing that you have accurately reported your cryptocurrency transactions and minimized your tax liability provides a sense of relief and financial stability. It’s not just about compliance; it’s about safeguarding your financial future.

How to account for cryptocurrency on your taxes

As cryptocurrency continues to grow in popularity, understanding its tax implications is more important than ever. The IRS is paying close attention to digital assets, and ignorance is no longer an excuse. By staying informed, keeping meticulous records and seeking professional advice, you can navigate the complexities of cryptocurrency taxation with confidence. Prepare now for the next tax season to avoid surprises and ensure you remain compliant with tax laws. Remember, the key to mastering cryptocurrency taxes is preparation and diligence. Stay ahead of the curve and take control of your financial destiny.

By adhering to these guidelines and strategies, you can turn the daunting task of cryptocurrency taxation into a manageable part of your financial routine. Make informed decisions, seek professional guidance and keep detailed records to ensure a smooth and stress-free tax season.

This story was created using AI technology.

source:rollingout

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Risk Warnings and Disclaimers

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Samantha Luan

Economic

Forex

Central Bank

New Zealand Dollar surged strongly today following much better than expected Q2 employment data. Speculations of an early rate cut by RBNZ next week now seem exaggerated. Major banks still expect RBNZ to start easing monetary policy this year, with consensus pointing to the November meeting. However, there's still a possibility that RBNZ could signal a shift towards an easing bias in its upcoming meeting.

In contrast, Yen plummeted broadly after comments from BoJ Deputy Governor Shinichi Uchida. Uchida highlighted significant concerns over recent extreme volatility in global financial markets and acknowledged the strong rebound in Yen's exchange rate. These factors are affecting economic and price developments, leading Uchida to rule out another rate hike in the near term.

For today, Kiwi is the strongest performer, followed by Aussie and Sterling. Yen is the weakest, trailed by Swiss Franc and Euro. Dollar and Loonie are in the middle.

As for the week so far, Kiwi also leads as the strongest currency, followed by Loonie and Aussie. Sterling is the weakest, followed by Yen and Swiss Franc. Dollar and Euro position in the middle of the pack.

Technically, NZD/USD's extended rebound today confirms short term bottoming at 0.5849, after hitting 0.5851 support. Stronger rise could be seen to 55 D EMA (now at 0.6032) and possibly above. However, firm break of channel resistance (now at 0.6174) is needed to confirm completion of the decline from 0.6368. Otherwise, risk will stay on the downside for another fall through 0.5849/51 to 0.5771 at a later stage.

NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution_1

In Asia, at the time of writing, Nikkei is up 2.74%. Hong Kong HSI is up 1.31%. China Shanghai SSE is up 0.31%. Singapore Strait Times is up 1.26%. Japan 10-year JGB yield is down -0.0229 at 0.864. Overnight, DOW rose 0.76%. S&P 500 rose 1.04%. NASDAQ rose 1.03%. 10-year yield rose 0.103 to 3.888.

BoJ's Uchida: To keep interest rate for the time being due to extreme global market volatility

In a speech today, BoJ Deputy Governor Shinichi Uchida emphasized the necessity of maintaining monetary easing with the current policy interest rate "for the time being", citing "extremely volatile" recent developments in both Japanese and global financial and capital markets. Uchida assured that BoJ is monitoring these developments with "utmost vigilance" and will adjust monetary policy as appropriate.

Uchida reiterated that if the outlook for economic activity and prices is realized, BoJ would "continue to raise the policy interest rate." Howeer, he noted that "significant movements in stock prices and foreign exchange rates since last week" are particularly relevant in shaping this outlook.

Furthermore, Uchida pointed out that the recent correction in Yen's depreciation has reduced the "upside risk to prices arising from higher import prices." This adjustment in Yen's value "affects the conduct of monetary policy."

New Zealand employment grows 0.4% in Q2, above expectations

New Zealand's employment data for Q2 showed unexpected strength, with employment growing by 0.4%, defying expectations of a -0.3% contraction. However, the unemployment rate increased from 4.4% to 4.6%, which was still better than the anticipated 4.7%. The labor force participation rate also saw a modest rise of 0.2% to 71.7%, while the employment rate remained steady at 68.4%.

All sector wage inflation was recorded at 1.2% qoq and 4.3% yoy. Private sector wage inflation stood at 0.9% qoq and 3.6% yoy. The public sector saw higher wage inflation at 1.8% qoq and 6.9% yoy, with the annual rate hitting a series high.

China's exports grow 7.0% yoy in Jul, imports rises 7.2% yoy

China's export growth for July came in at 7.0% yoy, falling short of the expected 9.7% yoy increase. Exports to the US and EU each grew by about 8% yoy, while exports to ASEAN countries surged by 12% yoy.

Imports, on the other hand, rose by 7.2% yoy, exceeding the expected 3.5% growth. Notably, imports from the US surged by 24% yoy, imports from ASEAN countries increased by 11% yoy, and imports from the EU climbed by 7% yoy.

As a result, China's trade surplus narrowed from USD 99.1B to USD 84.6B, which was smaller than the expected USD 99.2B.

Looking ahead

Germany industiral production and trade balnace, France trade balance and Swiss foreign currency reserves will be released in European session. Later in the day, Canada will release Ivey PMI and BoC summery of deliberations.

EUR/JPY Daily Outlook

EUR/JPY's recovery from 154.40 extends higher today but stays below 162.87 resistance. Intraday bias remains neutral at this point, and further fall is expected. On the downside, below 157.71 minor support will turn bias back to the downside. Break of 154.40 will resume the fall from 175.41 to 153.15 support next. However, decisive break of 162.87 will confirm short term bottoming, and turn bias back to the upside for stronger rebound. NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution_2

NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution_2

In the bigger picture, fall from 175.41 medium term top should be correcting the whole rise from 114.42 (2020 low). Deeper fall could be seen as long as 55 W EMA (now at 161.79) holds. But strong support should emerge between 153.15 and 38.2% retracement of 114.42 to 175.41 at 152.11 to bring rebound (at least on first attempt). Meanwhile, sustained trading above 55 W EMA will argue that the range of the medium term corrective pattern has already been set. NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution_3

NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution_3

Source: ActionForex

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Thomas

Economic

Stocks

A day after the Tokyo stock market had its biggest fall since 1987, Yuri Sekiya decided it was time to heed Prime Minister Fumio Kishida's longstanding call for Japanese citizens to invest more of their $15 trillion in household assets.

The recent market volatility has emerged as a test case for Kishida's drive to transform Japan from a nation of savers to one of investors, a shift crucial for the world's fourth-largest economy as it confronts a rapidly ageing population.

Sekiya, 49, spent Tuesday morning, as stocks were rebounding, at a brokerage seminar learning about NISA accounts - the government's tax-free programme designed to channel dormant cash into shares and mutual funds - in Tokyo's Shinjuku district.

"Maybe now is a good time to start a NISA, because I think the market will go up more stably" after the plunge, said Sekiya, who works part-time in education. She opened her NISA account earlier this year but had held off investing due to caution.

"Japan is becoming a society where we can't just rely on our pension," she said, underlining growing awareness among many Japanese that cash is no longer enough to ride out retirement.

Everywhere, Japan is showing quiet signs of change after decades spent battling deflation and stop-start growth: prices and wages are going up and the central bank is lifting interest rates for the first time in years.

Kishida has made the NISA, which was first launched in 2014, a pillar of his "new capitalism" platform aimed at boosting household wealth after years of decline.

The Nikkei benchmark index slumped more than 12 per cent on Monday followed by a 10 per cent surge on Tuesday. Market participants attributed panic selling, including by more sophisticated retail investors who were trading on margin - or using borrowed funds - as a key driver of Monday's decline.

Tokyo exchange data showed a record value of shares bought on margin in July, a risky strategy that can increase returns but also amplify losses in a downturn.

Brokerage Swamped

SBI Securities, Japan's largest online brokerage, said its website was flooded with users shortly after the market opened on Tuesday. Some customers had difficulty accessing the website, a situation that lasted about an hour, a spokesperson said.

There were customers who wanted to sell and others wanting to buy on the dip, the spokesperson said.

Telephone enquiries had increased by about 50 per cent and the brokerage reinforced staffing at call centres. It had not seen evidence of a client exodus when it came to NISA accounts, the spokesperson said.

Many Japanese have long avoided investing, seeing it as too risky or akin to gambling.

"There are more people considering investing now, but seeing the current situation might make them hesitate," said 69-year-old Hiroshi Nabasama, who works in marketing and has had a NISA account for a decade.

"Younger people are showing more interest in stocks, unlike our generation," he said.

Kishida wants to see household investment income doubled to ease reliance on the public pension system as Japan ages.

Under his administration, the NISA programme was overhauled; from this year the annual investment limit was increased to 3.6 million yen ($24,400) and balances up to a certain level made permanently tax exempt.

As a result, Japanese have flocked to NISA, with the number of accounts surging by almost 2 million in the first three months of this year, according to the Japan Securities Dealers Association.

As of March there were approximately 23 million NISA accounts with around $267 billion invested through them, according to the FSA bank regulator. Many investors, especially first-timers, favour global or U.S. mutual funds rather than domestic assets.

However, not everyone is rushing to invest.

IT worker Yui Takei, 36, who does not have a NISA account, said: "I like the idea of investing in a NISA, but given the recent decline and other issues, I think it's crucial to study thoroughly before jumping in."

She added that she found the government's promotion of the programme somewhat off-putting.

Sekiya said her 20-year-old daughter cautioned that it might not be a good time to invest given the market's recent volatility, but she disagreed.

"I think we just need the right knowledge to invest."

($1 = 147.6000 yen)

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

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Uchida Shinichi: BOJ Won't Raise Rates when Markets Are Unstable

Uchida Shinichi's Press Conference

London Pre-Open: Stocks to Gain on Positive US, Asian Cues

Source: ShareCast

Why A Full-fledged Bear Market Is Still Unlikely Even After The Latest Sharp Sell-off

Source:BUSINESS INSIDER

China's Commodity Imports Show Economy Struggling for Momentum

Steady Imports

Source: Reuters

What You Need To Know About Cryptocurrency And Taxes Next Season

Introduction to cryptocurrency and taxes

Understanding the basics of cryptocurrency taxation

What is taxable?

Capital gains and losses

Cost basis

Key considerations for the next tax season

Recordkeeping

Tax forms and reporting

Foreign account reporting

Strategies to minimize your tax liability

Tax-loss harvesting

Gifting cryptocurrency

Charitable donations

Preparing for future regulations

Stay informed

Consult a tax professional

Emotional triggers and financial responsibility

The anxiety of compliance

The relief of proper planning

How to account for cryptocurrency on your taxes

source:rollingout

NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution

BoJ's Uchida: To keep interest rate for the time being due to extreme global market volatility

New Zealand employment grows 0.4% in Q2, above expectations

China's exports grow 7.0% yoy in Jul, imports rises 7.2% yoy

Looking ahead

EUR/JPY Daily Outlook

Source: ActionForex

Volatile Markets Test Kishida's Push to Make Japan A Nation of Investors

Source: Reuters

Risk Disclosure