Comments from adiser to Japanese PM Abe, Koichi Hamada:
- Japan can offset yuan devaluation by monetary easing
- BOJ may ease if China move hits external demand too much
- China's FX move will tend to boost yen
- China's yuan move is a step to free or substantial float
Headlines on Bloomberg
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Hamada will need to tread carefully here. Japan Inc. has insisted BOJ easing isn't about currency depreciation (that's an unintended side effect ... ;-) ) but some of these comments are getting awfully close to suggesting Japan may move to depreciate the yen ...
