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Nikkei index slumps for fourth straight day as yen strengthens, export stocks hit hard

The Tokyo market was notably unsettled ahead of the August U.S. employment statistics, which are anticipated to be a key determinant for future U.S. interest rate adjustments. The ADP National Employment Report released on September 5 revealed job growth that fell short of market expectations, amplifying concerns about the upcoming data. Analysts predict that weak employment figures could prompt a stronger yen and weaken the dollar, potentially driving the Nikkei below the 36,000 yen mark early next week. Yamaguchi Masahiro, head of investment research at SMBC Trust Bank, warned of significant market reactions if the employment report disappoints.

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Japanese companies reevaluate strategies amid China’s economic slump

The impact of the economic downturn is increasingly evident in the performance of Japanese firms operating in China. Many are encountering intensified competition from local Chinese enterprises and are now contemplating strategic withdrawals from the market. This shift marks a significant development, as it reflects a broader recalibration of business strategies in the face of an increasingly challenging environment.

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Nikkei hits lowest point since August as yen surges amid U.S. economic worries

The Nikkei Stock Average and the Tokyo Stock Price Index (TOPIX) both recorded their largest declines since August 5, a day marked by significant global market volatility. This latest selloff was precipitated by the Institute for Supply Management’s (ISM) report on August’s manufacturing activity, which revealed a contraction for the fifth consecutive month, falling short of market expectations. Particularly hard-hit were technology stocks in the U.S., including Nvidia, which saw its shares plummet, erasing $278.9 billion in market value—an unprecedented drop for a single U.S. stock.

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Dollar/Yen exchange rate hits 145.95 amid weakening Dollar; European currencies show mixed response

The temporary low of 145.95 for the dollar/yen pair highlights ongoing selling pressure on the dollar. This decline is attributed to a combination of factors, including shifting investor sentiment and adjustments in currency positions. The yen's rise against the dollar reflects a market reaction to various economic indicators and geopolitical developments impacting currency valuations.

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Nikkei dips, TOPIX gains for sixth day; semiconductor stocks decline

The Nikkei 225, a key benchmark of Japan’s stock market, closed marginally lower, reflecting investor caution amid ongoing concerns over global economic conditions and sector-specific challenges. Semiconductor stocks, which have been a major focus for investors due to their pivotal role in the global supply chain, were notably weaker. The sector's decline was attributed to a combination of factors, including persistent supply chain issues and reduced demand forecasts, which have led to a sell-off in related stocks.

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China threatens economic retaliation against Japan over semiconductor restrictions

According to sources cited by Bloomberg, Toyota is apprehensive that Beijing might retaliate by limiting Japan’s access to critical minerals essential for automotive production. This concern stems from Japan's stringent controls on chip manufacturing equipment, which are part of a broader strategy endorsed by the U.S. to curtail China's advancements in semiconductor technology. Toyota's strategic investments in Taiwan Semiconductor Manufacturing Company's (TSMC) Kumamoto plant have further heightened fears of becoming a target of Chinese economic measures.

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Japan’s lost generation: struggling with stagnant wages and career stagnation

The employment ice age of Japan created a tough environment for young people during this period. Many who managed to secure jobs found it difficult to climb the career ladder, as older employees, hired during the economic boom, were entrenched in their positions. This situation has been compounded by rising retirement ages, further limiting opportunities for advancement among the lost generation.

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