Wall street closed up in the green in yesterday trading sessions ahead of the job report being releasing tonite local singapore time. Bank of Japn governor Haruhiko Kuroda exceeded analyst estimates in announcing stimulus measures that aim to spur annual inflation to 2 per cent in 2 years. This will bold for the Japanese Economy to move from deflation stagnant economy to a inflationary economy. In economy theory "Philips Curve", there will be a trade off in the inflation and unemployment. The japanese governor is aiming for low unemployment boosting the japanese economy as well as having inflationary rate stable at 2%. Market watchers worry that the weak yen will increased Import Prices, Stagnant wages which could worsen the japanese economy. However we will focus on the short term reaction, the NIKKEI 225 jumped past the 13,000 points market which is seen as a bullish sign for ASIAN stock market.
In the local Singapore market, we expect the Straits Times Index to trade range bound between 3290-3310. Penny stocks will be in favourite again as Tokyo join global central bankers to stimulate the economy. This will bold well for companies with plan to expand into new profitable business as more money will be available to them.
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