Trade Tensions Putting Downward Pressure on Japan Exports, Says Continuum Economics’s Lu

The video discusses Japan's economic situation, highlighting a 1.6% contraction in exports for July, while domestic demand remains supportive. Trade tensions, particularly the US-China trade war and Japan-South Korea dispute, are impacting exports. The Japanese government plans a sales tax hike in October, aiming to restore fiscal balance despite potential economic drawbacks. The Bank of Japan faces limited options for further easing due to its massive stimulus program, with potential measures including cutting negative interest rates, expanding bond purchases, or allowing a wider trading band for the JGB yield.

What are the implications of the US-China trade war on Japanese exports?

In what ways might the Bank of Japan adjust its bond purchasing strategy?