TWD: SocGen See USD/TWD Supported On Dividend Outflows

Local news wire Yomiuri has reported that Japan's LDP has decided on cash hand outs to support households. Key quotes are outlined below. Note below the quotes are translated via google. 

• "On the 9th, the Liberal Democratic Party decided to include in its campaign pledges for the summer House of Councillors election a cash handout of several tens of thousands of yen per person as a measure to combat rising prices. The government plans to use the upside of tax revenue to fund the payment. Whether or not to impose an income limit will be decided in the future."
• "Meanwhile, on the same day, Prime Minister Shinzo Ishiba (president of the Liberal Democratic Party) instructed party executives to include in the election pledges for the House of Councillors election the goal of raising Japan's nominal gross domestic product (GDP) to 1000 trillion yen by 2040." The article notes that nominal GDP was just under 617 trillion yen in 2024.
• This follows reports from late yesterday on these cash hand out plans plans, see this link.
• Our London team noted: Not the first time we've seen this policy topic recently - this seems to be reviving an old policy idea that was dropped as recently as mid-April, when the government dropped plans for tariff-tied cash handouts before the election in the upper house.

In post-Tokyo trade, JGB futures closed stronger, +12 compared to settlement levels, after US tsys finished richer on Monday, correcting from Friday's sharp post-data cheapening even as the $119bn in auctions loom.

• MNI US DATA: NY Fed: Consumers Less Pessimistic On Jobs, Finances (link) The vast majority of Labor Market and Household Finance categories in the NY Fed's Survey of Consumer Expectations (SCE) improved in May, though many remain weaker compared with late 2024/early 2025 as tariff uncertainty appears to continue in respondents' minds.
• MNI JAPAN: Govt Reportedly Considering Fresh Drive for Cash Handouts: (link) The Japanese government are reportedly mulling cash handouts as a relief measure, according to Mainichi. Not the first time we've seen this policy topic recently - this seems to be reviving an old policy idea that was dropped as recently as mid-April, when the government dropped plans for tariff-tied cash handouts before the election in the upper house.
• Bloomberg - "The BOJ will probably slow the pace of tapering its JGB purchases next fiscal year at the board's upcoming meeting to around 200 billion ($1.38 billion) per quarter, former official Eiji Maeda said. "They won't keep going with 400 billion," he said"
• Today, the local calendar will see Money Stock and Machine Tool Orders data. 

NZ Finance Minister Willis told Bloomberg News that following advice from Treasury she believes that the RBNZ should increase the number of meetings by one to 8 and thus reduce the 12-week long summer break, which she said was a concern. More scheduled meetings would allow the MPC to respond to economic developments. She noted that the RBNZ meets fewer times a year than other central banks. The RBNZ has not responded yet. 

• Willis said “I’m particularly concerned about the 12-week break over summer, which is a long time to go between meetings … The central banks of England, Canada, Australia and the United States have shorter breaks and meet more frequently. I think the Reserve Bank should return to meeting eight times a year.”
• When asked previously about the long summer holiday, the RBNZ has said that it can respond to changing economic conditions in between meetings and that it continues to monitor data and events closely over December/January even though the MPC doesn’t convene.
• Treasury advised that the RBNZ could consider the option of meeting more frequently, which initially could be discussed by the central bank and Treasury leadership. This could then be followed by the RBNZ giving its own suggestions on the issue.
• Willis told Bloomberg though that it is a decision for the RBNZ to make but Treasury believes that there will be internal discussions about it at the central bank.