Japan Banks (Joint FX intervention), Taiwan Banks (IRB and CET1)

Research evidence excerpt

Japan Banks (Joint FX intervention), Taiwan Banks (IRB and CET1)

Specialist Sales

APAC Specialist Sales J P M O R G A N

02 August 2026

Japan Banks (Joint FX intervention), Taiwan Banks (IRB and

CET1)

Ayano Tsunoda

+81 3 6736 7628

ayano.tsunoda@jpmorgan.com

Key topics in today’s daily:

• Japan Banks: Joint FX intervention (Japan likely asked for help), Govt may be buying time for BoJ hikes but limited

cards left, the BoJ made themselves ready to accelerate depending on FX (forward guidance updated), Resona’s (8308

JT) earnings power outshines

• Taiwan Banks: IRB adoption (last week), immediate benefits to CET1 were much smaller than expected, Some

disappointment for Fubon and Cathay

Today - Earnings: MFUG, Daiwa Macro: PMI (Australia, China, Japan, Korea, HK, Indonesia, Philippines, Malaysia, Taiwan,

Thailand, Vietnam), CPI (Indonesia, Vietnam)

Good morning,

What a morning to begin a new month. Price action post-joint intervention (crisis time only rare event) suggests that the big

picture hasn’t really changed. Questions over Japan’s fiscal credibility remain as the funding source for the consumption tax cut

(estimated Y5trill/yr needed, tax cut effective next Apr) remains unclear. (Econ & Fiscal Minister Kiuchi yesterday said the govt

aims to secure funding during the FY27 budget drafting process. Link) Govt may be buying time as they don’t want to see

accelerated rate hikes, but they have limited cards left after using GPIF (Link) and the US help. (The US intervened via EUR,

instead of USD, suggesting that the action was made due to Japan’s request, not Plaza Accord 2.0. Link) Our FX strategist Junya

Tanase (ex MOF intervention dept) is keeping his year-end 164 forecast unchanged and reminds us that that 1) MoF has limited