Week in FX Asia Oct: Japanese Car Industry Stalls

October 5, 2012 Share Print 0

Japanese car makers sales are set to plunge, more so now after public protesting and calls for boycotting Japanese products broke out across China a fortnight ago. Violent outbreaks have occurred on the back of Japan buying a group of disputed islands in the East China Sea from private owners. Already Toyota Motor Corp Chinese sales have fallen approximately -40% to around +50k unitâ€™s last month on a y/y basis.

Prolonged sales losses are expected to affect upcoming profit forecasts for Japanese companies like Toyota and Nissan who rely on China to fulfill the biggest portion of their global sales. For every loser there is a winner. Expect neighboring South Korea to harvest the fruits of Japans efforts.

Already Hyundai Corporation has noticed its sales volumes increase dramatically, jumping +15% last month. The JPY is waging a war on its own, appreciating initially on rate differentials, however, the long Yen positions have been tested after a surprisingly strong employment report Friday.

WEEK AHEAD

EUR German Trade Balance (euros)
USD Fed Releases Beige Book Economic Survey
JPY Machine Orders (YoY)
CNY New Yuan Loans
AUD Unemployment Rate
JPY Consumer Confidence
EUR German Consumer Price Index (YoY)
EUR ECB Publishes Oct. Monthly Report
USD Trade Balance
JPY IMF, World Bank Group Annual and Spring Meetings
USD Producer Price Index Ex Food & Energy (YoY)
USD U. of Michigan Confidence

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Dean Popplewell

Vice-President of Market Analysis at MarketPulse

Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.