Abenomics at a crossroads: Where next for Japan?

Company attitudes developing

The slowdown in China has created crosscurrents for Japan, as China is Japan's largest global trading partner. Japanese exports worldwide fell a disappointing 8% in 2015, somewhat faster than expected.

Yet the Bank of Japan's unconventional rates strategy is an important development in the history of Abenomics. 'Core-core' inflation, which strips out food and energy prices, is positive; the BoJ hopes its negative rates strategy will give a further boost to consumer and commercial lending and capital expenditure. There is already talk of banks charging institutions and corporations for large deposits, which could be significant as Japanese companies are thought to have around $2trn on their balance sheets.   Japanese markets offering 'best opportunities since tech bubble burst' ...