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13 Jun 2014
Risk sentiment among Japanee retail investors on the rise - Nomura
FXStreet (Bali) - As Nomura reports, retail investors's risk sentiment improved in April for the third month in a row, according to the June Nomura Individual Investor Survey.
Key Quotes
"Nomura's I-View Index, which captures retail investors' views on the outlook for Japanese equity prices, rose to 47.2, the highest level since January, from 44.0 in May. The recovery suggests retail investors‟ risk sentiment is likely to recover gradually as concerns about the sales tax hike decrease."
"The recovery is also in line with a strong improvement in the household-related outlook DI of the Eco-Watchers survey (see "Foreign investment remains strong in May", 9 June 2014). We believe toshin momentum should keep improving gradually this year, while momentum has already recovered since April."
"Retail investors also see upside rather than downside risks to USDJPY. Of the respondents, 65.4% expect USDJPY to rise from the reference level (101.98 on 2 June), while 58.7% expected a rise in USDJPY a month ago."
"Even though the small increase in the percentage of those expecting a rise in USDJPY is partly owing to the lower reference level (102.24) in May, retail investors' expectations for further JPY weakness remain intact."
"In fact, weekly data compiled by NRI suggest that retail investors now prefer foreign assets to domestic assets when investing in toshins. Persistent expectations for JPY weakness should support toshin momentum going forward. AUD remains the most popular foreign currency for retail investors, for the second month in a row."
Key Quotes
"Nomura's I-View Index, which captures retail investors' views on the outlook for Japanese equity prices, rose to 47.2, the highest level since January, from 44.0 in May. The recovery suggests retail investors‟ risk sentiment is likely to recover gradually as concerns about the sales tax hike decrease."
"The recovery is also in line with a strong improvement in the household-related outlook DI of the Eco-Watchers survey (see "Foreign investment remains strong in May", 9 June 2014). We believe toshin momentum should keep improving gradually this year, while momentum has already recovered since April."
"Retail investors also see upside rather than downside risks to USDJPY. Of the respondents, 65.4% expect USDJPY to rise from the reference level (101.98 on 2 June), while 58.7% expected a rise in USDJPY a month ago."
"Even though the small increase in the percentage of those expecting a rise in USDJPY is partly owing to the lower reference level (102.24) in May, retail investors' expectations for further JPY weakness remain intact."
"In fact, weekly data compiled by NRI suggest that retail investors now prefer foreign assets to domestic assets when investing in toshins. Persistent expectations for JPY weakness should support toshin momentum going forward. AUD remains the most popular foreign currency for retail investors, for the second month in a row."