A Sense of Apathy over Moody’s Japan Downgrade

Investors shrugged off Moody’s downgrade of Japan’s sovereign debt rating, maintaining their bullish outlook on the market despite headwinds facing the world’s third-largest economy.

The benchmark Nikkei 225 traded was up 0.1 percent on Tuesday, one day after the U.S. ratings agency cut Japan’s credit rating by one notch to A1 from Aa3, citing increased uncertainty over whether Japan Prime Minister Shinzo Abe can achieve his deficit.

In comparison, Standard & Poor’s has an AA- rating on Japan, equivalent to the Aa3 level that Moody’s had before the downgrade. Fitch Ratings has Japan at A+, on par with Moody’s new rating.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.