The Topix, Japan’s stock index, posted its largest two-day decline this month amid delays to Japan’s sales tax increase. The turn to fiscal policy has led to stimulus for the yen, which is inadvertently having a negative effect on the Topix due to the increased export cost of Japanese products and services. There has been very little data out from the Japanese this last week, barring some impressive household spending figures that boosted the yen early Tuesday. Next week’s current account and grow figures are likely to have more of an effect on the Japanese currency.
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