Peiqian Liu discusses BOJ decision and Asia economic outlook. Robert Lea talks about impact of AI on big tech earnings. Jill Disis explores Secretary Blinken's visit to China.
BOJ focuses on inflation forecasts above 2% for next 3 years.
Big tech earnings emphasize AI as a crucial multi-year trend.
Deep dives
The Bank of Japan's Monetary Policy Expectations
Expectations for the Bank of Japan's monetary policy indicate an unchanged policy rate and setting. Recent actions saw the exit from negative interest rates. Focus is on inflation revisions with forecasts anchored around or above 2% for the next three years.
Impact of Weak Yen and Imported Inflation on Japan's Economy
The weakening Japanese yen, driven by a strong dollar rally, contributes to rising imported inflation, aiding in the BOJ's objectives for economic reflation. Despite discomfort in the stock market, interventions might not happen due to observing the pace of depreciation rather than specific levels.
Tech Earnings and AI Trends in the Semiconductor Industry
Tech earnings from companies like Alphabet, Microsoft, and Meta show a focus on AI as a multi-year trend with potential benefits. Nvidia's AI accelerators and memory chip makers are crucial in the AI ecosystem. Samsung's upcoming results will reveal how it navigates advancements in AI tech and narrows the technology gap with competitors.