News Headline Summary

Credible debt stabilisation strategy still key for Japan, according to Fitch

Says:

- Structural reform to enhance Japan economy's growth potential would be more supportive for sovereign ratings.
- Central issue for Japan's sovereign credit rating remains developing credible fiscal strategy.
- New Liberal Democratic Party appears committed to reflating economy.
- Japan's export-driven economy means sustained JPY depreciation may be easiest way to boost growth.
- Size of Japan stimulus package not large enough to alter rating.
- Postponement of Japan consumption tax boost would be negative for fiscal outlook.
- Japan stimulus package appears to abandon integral part of previous administration's framework.

Reaction details (00:44)

- No immediate reaction seen in USD/JPY. However, 6 minutes following the release of this statement, USD/JPY moved up 11 pips to 89.95 from 89.84, trades at 89.99 (+11 pips) last.

18 Jan 2013 - 00:21 - - Source: Newswires

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