JPY flows: JPY weak as wage growth slows, but...

The JPY has been weak again overnight, helped by weaker than expected Japanese wage data and continued resilience in equities, most of which, China excepted, managed modest gains in Asia in the futures markets after a sell off on Friday. The weakness of the Japanese wage data suggests last week’s strong household spending numbers are likely a flash in the pan, although the wage data itself was affected by weak bonuses and may bounce back. Even so, Japanese 10 year yields have held near 1.45%, and both yields spreads and equity risk premia suggest JPY weakness is overdone here.