Japan bankruptcies seen rising to seven-year high on virus hit – Bloomberg

Early Friday morning in Asia, even before the Tokyo open, Bloomberg came out with the news that conveys a major Japanese research firm’s forecast. The analysis from Tokyo-based Teikoku Databank Ltd. suggests companies declaring bankruptcy in Japan will likely climb to the most in seven years in 2020.

Key quotes

Bankruptcy protection filings jumped to 758 in April, with 123 of those caused by factors related to the pandemic, as the outbreak forced hotels and restaurants to close their doors, according to the major credit research firm that compiles Japan corporate failure data.

That’s the view of Tokyo-based Teikoku Databank Ltd., which is forecasting that such cases may exceed 10,000 this year, the highest since 2013.

FX implications

While the news failed to provide any immediate market impact, it could challenge the current risk-on sentiment and may weigh on the USD/JPY if the scheduled data from Japan comes out as negative. Against this backdrop, the yen major seesaws around 107.60/65 by the press time.