Japanese Economy

Japan commits $10 million to build schools in Afghanistan

The $10 million aid package will also fund the provision of educational materials, such as textbooks and learning aids, which are crucial for effective teaching and learning.

Nikkei closes higher as BOJ Governor moderates Hawkish stance

Morning sessions saw Ueda adopt a hawkish tone, signaling a potential for further interest rate hikes should inflation trends meet expectations. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, noted that Ueda’s initial remarks reinforced the possibility of tighter monetary policy if inflationary pressures persist.

Bank of Japan Governor vows vigilance amid market turmoil, hints at future rate hikes

Ueda's comments were delivered during a session of the Diet, which is currently out of session, to clarify the BOJ’s response to recent market fluctuations. The policy adjustment led to heightened volatility in both the stock and currency markets, with the Nikkei Stock Average witnessing its largest-ever single-day drop, followed by a notable recovery. Concurrently, the yen experienced fluctuations, briefly strengthening to the ¥141 range against the dollar before stabilizing.

Japan sets record for foreign visitors for second consecutive month amid yen weakness

The remarkable increase in visitor numbers was notably influenced by school holidays in East Asia and Europe, which contributed to a notable rise in arrivals from these regions. The influx of tourists comes as Japan continues to recover from the pandemic's impact on global travel. As of July, Japan has seen over 21 million visitors this year, placing it on track to exceed the pre-pandemic annual record of 31.9 million set in 2019.

Nikkei stock average dips as yen strengthens ahead of US jobs data

A stronger yen typically undermines exporter shares by reducing the value of overseas profits when converted back to yen. At market close, the yen was trading at approximately 145.74 per dollar, having peaked at 144.945 earlier in the day.

Japan’s summer heatwave boosts sales of cooling products and alters retail strategies

Among the standout performers are portable air conditioners, or spot coolers, which have seen a 26% rise in sales at Cainz hardware stores compared to last July. These compact units, which are favored for their ease of use and lack of installation requirements, are particularly popular in areas like kitchens and dressing rooms, which often lack fixed air conditioning systems. Additionally, Cainz has reported a 250% increase in sales of multifunctional umbrellas that double as parasols, with those marketed toward men experiencing a staggering 300% rise.

Nikkei stock average rebounds on weaker yen and technology boost

During the trading session, the Nikkei surged by over 2% before settling at its final figure. The broader Topix index also experienced gains, rising 1.1% to end the day at 2,670.54. The upward movement in the Nikkei was driven by domestic tech stocks tracking their U.S. counterparts higher, contributing to the overall positive performance of the benchmark index.

Japan may shift focus to yen selling amid currency volatility

Historical patterns suggest that after periods of yen-buying interventions, the BOJ has occasionally turned to yen-selling interventions to counteract excessive appreciation. Nomura, Japan’s largest brokerage, recently highlighted this possibility, noting that while it isn’t yet their primary scenario, future Ministry of Finance (MOF) interventions to curb yen strength could be on the table.

Nikkei rallies on U.S. retail sales data, marks best week in over four years

The Nikkei closed the day at 38,062.67, marking a 3.6% increase and its second-largest daily gain of the year. The broader Topix index also saw a notable rise, finishing approximately 3% higher at 2,678.60. For the week, the Nikkei enjoyed a remarkable gain of over 8%, its strongest weekly performance since April 2020. This upturn was fueled by a combination of easing recession fears in the U.S., a halt in the yen’s rapid appreciation, and signs of improved economic growth in Japan.

Nikkei gains as Kishida announces resignation; market anticipates U.S. inflation data