Inflação desejada do Japão e impacto geopolítico global

What happened: The yen's collapse, with USDJPY surging past 160, has put Japan on edge, prompting speculation of Bank of Japan (BOJ) intervention. Meanwhile, a Reuters poll revealed a rise in Japanese firms opposing BOJ rate hikes due to global growth uncertainties, particularly the Iran conflict. Despite this, large Japanese manufacturers' business optimism has hit a four-year high, according to the BOJ's Tankan survey.

Market impact: The yen's depreciation drives up import costs for Japanese companies, squeezing profit margins. Conversely, it boosts exports, benefiting manufacturers like Toyota and Sony. The Iran conflict clouds the outlook for global growth, affecting companies with significant overseas operations, such as SoftBank and Nomura. Inflation, which the BOJ desires, is rising but not due to its preferred domestic demand growth, posing a policy dilemma.

What to watch next: The BOJ's next policy meeting on April 27-28, where it may intervene to stabilize the yen or adjust its yield curve control policy. Also, watch for the April 28 Tankan survey results to gauge any shift in business sentiment. Lastly, monitor the Iran situation's evolution, as it could significantly impact global growth and Japanese companies' earnings.