HSBC Sees Risk Premium for Yen as Japan Fiscal Concerns Grow -- Market Talk

Dow Jones

Jan 26

0856 GMT - Concerns about Japan's fiscal sustainability amid rising inflation and political changes are putting a risk premium on the yen, says HSBC's Joey Chew. As elections loom, various parties have proposed consumption tax relief, "but we have not heard much about concrete plans for plugging the funding gap." It may take time and some effort by authorities to gain more credibility. In the meantime, FX intervention and other capital flow measures can help, says Chew. Seeing as Japan and U.S. authorities have expressed concerns about the yen, joint action seems possible near term. That said, the joint intervention seen in 1989-1990 suggests one shouldn't assume that U.S. involvement is a panacea for JPY weakness. If intervention does happen, net short positioning implies more limited negative spillover then when Japan's finance ministry last sold USD in 2024. (jason.chau@wsj.com)

(END) Dow Jones Newswires

January 26, 2026 03:56 ET (08:56 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

LOGIN / SIGN UP

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

1
2
3
4
5
6
7
8
9
10

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www-web.itiger.com/news/2606138942"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2606138942\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2606138942?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-01-26 16:56","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2606138942","market":"nz","top_or_hot":-1,"title":"HSBC Sees Risk Premium for Yen as Japan Fiscal Concerns Grow -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0856 GMT - Concerns about Japan's fiscal sustainability amid rising inflation and political changes are putting a risk premium on the yen, says <a href=\"https://laohu8.com/S/HSBC\">HSBC</a>'s Joey Chew. As elections loom, various parties have proposed consumption tax relief, \"but we have not heard much about concrete plans for plugging the funding gap.\" It may take time and some effort by authorities to gain more credibility. In the meantime, FX intervention and other capital flow measures can help, says Chew. Seeing as Japan and U.S. authorities have expressed concerns about the yen, joint action seems possible near term. That said, the joint intervention seen in 1989-1990 suggests one shouldn't assume that U.S. involvement is a panacea for JPY weakness. If intervention does happen, net short positioning implies more limited negative spillover then when Japan's finance ministry last sold USD in 2024. (jason.chau@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 26, 2026 03:56 ET (08:56 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HSBC Sees Risk Premium for Yen as Japan Fiscal Concerns Grow -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHSBC Sees Risk Premium for Yen as Japan Fiscal Concerns Grow -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-01-26 16:56</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0856 GMT - Concerns about Japan's fiscal sustainability amid rising inflation and political changes are putting a risk premium on the yen, says <a href=\"https://laohu8.com/S/HSBC\">HSBC</a>'s Joey Chew. As elections loom, various parties have proposed consumption tax relief, \"but we have not heard much about concrete plans for plugging the funding gap.\" It may take time and some effort by authorities to gain more credibility. In the meantime, FX intervention and other capital flow measures can help, says Chew. Seeing as Japan and U.S. authorities have expressed concerns about the yen, joint action seems possible near term. That said, the joint intervention seen in 1989-1990 suggests one shouldn't assume that U.S. involvement is a panacea for JPY weakness. If intervention does happen, net short positioning implies more limited negative spillover then when Japan's finance ministry last sold USD in 2024. (jason.chau@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 26, 2026 03:56 ET (08:56 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0310800965.SGD","symbol_name":"FTIF - Templeton Global Balanced A Acc SGD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2606138942","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2606138942","pubTimestamp":1769417760,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0856 GMT - Concerns about Japan's fiscal sustainability amid rising inflation and political changes are putting a risk premium on the yen, says HSBC's Joey Chew. As elections loom, various parties have proposed consumption tax relief, \"but we have not heard much about concrete plans for plugging the funding gap.\" It may take time and some effort by authorities to gain more credibility. In the meantime, FX intervention and other capital flow measures can help, says Chew. Seeing as Japan and U.S. authorities have expressed concerns about the yen, joint action seems possible near term. That said, the joint intervention seen in 1989-1990 suggests one shouldn't assume that U.S. involvement is a panacea for JPY weakness. If intervention does happen, net short positioning implies more limited negative spillover then when Japan's finance ministry last sold USD in 2024. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","HSBC":"汇丰","BK4588":"碎股","BK4585":"ETF&股票定投概念","BK4207":"综合性银行","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","BK4521":"英国银行股","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A"},"translate_title":"随着日本财政担忧加剧，汇丰银行认为日元存在风险溢价——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HSBC":1.5},"content_text":"0856 GMT - Concerns about Japan's fiscal sustainability amid rising inflation and political changes are putting a risk premium on the yen, says HSBC's Joey Chew. As elections loom, various parties have proposed consumption tax relief, \"but we have not heard much about concrete plans for plugging the funding gap.\" It may take time and some effort by authorities to gain more credibility. In the meantime, FX intervention and other capital flow measures can help, says Chew. Seeing as Japan and U.S. authorities have expressed concerns about the yen, joint action seems possible near term. That said, the joint intervention seen in 1989-1990 suggests one shouldn't assume that U.S. involvement is a panacea for JPY weakness. If intervention does happen, net short positioning implies more limited negative spillover then when Japan's finance ministry last sold USD in 2024. (jason.chau@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  January 26, 2026 03:56 ET (08:56 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}