KUALA LUMPUR, June 10 (Bernama) -- The yen's decline over the past few months should be positive for the rest of Asia, at least at the macro level, says Standard & Poor's Ratings Services.
It said most regional economies were net importers from Japan, so a weaker yen meant cheaper imports.
In a report titled, "Is A Weak Japanese Yen A Problem For The Rest of Asia?", S & P Chief Economist Paul Gruenwald said although the yen's steep decline had negative connotations for the export competitiveness of neighbouring economies, the recent weakness of the yen was seen as retracing the sharp gains noted during the 2008 global financial crisis.
He said any portfolio effects of a weak yen on the rest of Asia appeared to be minor currently.
"Japan has mostly seen net inflows from foreign equity investors and historically most outflows from Japan have travelled outside Asia," he said.
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