Nikkei 225

Market Chatter: Weak Yen Drives Record Japanese Used Car Exports, But Domestic Affordability Worsens

Japan shipped a record number of used cars overseas last year, fueled by strong demand linked to the weak yen, Nikkei Asia reported on Tuesday, citing a regional purchasing manager at a used car dealer Nextage (TYO:3186).Rising procurement costs for used cars have pushed a growing number of Japanese dealerships into bankruptcy, the news daily said.Consequently, domestic buyers are left with very few options in the 1 million to 2 million yen range, which is generally seen as affordable, the publication said.A regional purchasing manager at major used car dealer Nextage noted that prices have surged dramatically over the last three years, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Carlyle Plans Larger Japan Fund; Commits to Working Within Local Priorities

Carlyle Group intends to make its next Japan investment fund larger than its current one, Nikkei reported on Tuesday, citing Chief Executive Officer Harvey Schwartz.Schwartz praised Japan's relatively low interest rates and its success in attracting global capital, noting that investment opportunities exist in succession planning, carve-outs, and take-privates, the publication said.The firm raised 430 billion yen or $2.71 billion for its fifth Japan-focused fund in 2024 and has been actively pursuing new deals, the news daily said.The deals include acquisitions of KFC Holdings Japan (TYO:9873), Hogy Medical (TYO:3593), and Omron's (TYO:6645) electronic components arm, the report said.Most recently, Carlyle announced it would acquire fire extinguisher maker Nippon Dry-Chemical (TYO:1909) in partnership with security firm Alsok, it added.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Japanese Shares Rise as Trump Halts Iran Strikes, While GDP Beat Supports BOJ Rate Hike Prospects

Japanese stocks advanced at the opening bell on Tuesday following President Donald Trump's decision to call off fresh military strikes against Iran, which raised hopes for a peace deal and reopening of the Strait of Hormuz.The Nikkei 225 rose 386.9 points or 0.6% to open at 61,202.84.Meanwhile, Japan's economy grew faster than expected in the first quarter, supporting further rate hikes by the Bank of Japan.According to a Cabinet Office report released Tuesday, real GDP grew at an annualized rate of 2.1% in the January-March period - before the full effects of the war in Iran began to materialize.

Japan's Economy Grows 2.1% in Q1, Beating Estimates

Japan's economy grew an annualized 2.1% in the first quarter, according to the first preliminary figures from the Cabinet Office.The latest print beat market expectations for a 1.7% increase, according to a Reuters poll.The world's fourth-largest economy grew 0.5% on a seasonally adjusted basis during the quarter, better than the revised 0.2% increase in the previous quarter.Domestic demand saw an annualized rise of 1%, with private demand, accounting for over half of Japan's GDP, increasing by 0.8%.Exports of goods and services rose 7.1%, while imports edged up 1.9%.

Market Chatter: Japan Rules Out Selling US Treasuries to Boost Yen, Citing Risks of Backfire

A senior Japanese Finance Ministry official has cast doubt on using U.S. Treasury sales to support the yen, warning that such a move could prove counterproductive, Bloomberg News reported on Tuesday.The official explained that selling U.S. bonds might push American yields higher, which in turn could weaken the yen further, the news wire said.While noting that Japan has ample cash and deposits for intervention, the official made these remarks in Paris on Monday following U.S. Treasury Secretary Bessent's visit to Tokyo, the publication said.Japan, the largest foreign holder of U.S. Treasuries with $1.19 trillion in combined official and private holdings, likely intervened in currency markets for the first time since 2024 late last month, yet the yen remains under pressure, it added.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Japan's Annualized GDP Growth Accelerates to 2.1% in Q1

Oil, China Economic Reports Damp Asian Stock Markets

Asian stock markets sagged on Monday, as the Strait of Hormuz remained closed to oil-tanker traffic, and after Beijing released a slate of tempered economic reports.Brent crude futures traded up 0.9% to $110.29 a barrel during Asian trading hours.Hong Kong, Shanghai, and Tokyo finished in the red, while other regional exchanges were choppy.In Japan, the Nikkei 225 opened lower on Wall Street cues and could not recover, finishing off 0.9% as traders weighed rising petroleum prices, higher domestic inflation, and the outlook for rate hikes from the Bank of Japan.The benchmark Nikkei 225 fell 593.34 to 60,815.95, as losing issues outnumbered gainers 159 to 62.Leading the upside was medical device maker Terumo, up 18.6%, while department store chain Marui declined 8.5%, with both moves following earnings releases.In Hong Kong, the Hang Seng Index closed down 1.1% after Beijing issued a slate of downbeat economic reports. Real estate shares were pummeled.The broad gauge Hang Seng fell 287.55 to 25,675.18, as losing issues outnumbered gainers 77 to 11. The Hang Seng TECH Index lost 2% on the day, while the Mainland Properties Index fell 4.7%.Leading the upside was China Telecom, gaining 6%, while Li Auto declined 14.1%.On the mainland, the Shanghai Composite fell 0.1% to 4,131.53.In economic news, mainland China retail sales in April rose a scant 0.2% on year, reported the National Bureau of Statistics (NBS).The nation's industrial output rose 4.1% on-year in April, but slowed from the 5.7% gain logged in March, added the NBS.Fixed-asset investment declined 1.6% on year in the first four months of 2026, while house prices in the 70-city sample slipped 0.19% on-month in April, according to official figures.On the other regional exchanges, the S. Korean KOSPI rose 0.3%; the Taiwan TWSE declined 0.7%; the Australian ASX 200 declined 1.5%; the Singapore Straits Times Index rose 0.1%, and the Thai Set was steady. In late trading in Mumbai, the Sensex was up 0.1%The MSCI All Country Asia Pacific Index fell 0.7% on the day.

Market Chatter: Japan to Issue New Cybersecurity Rules Leveraging Advanced AI for Vulnerability Detection

Japan plans to issue new cybersecurity guidelines requiring software developers to use powerful AI tools like Anthropic's Claude Mythos for vulnerability scanning, Nikkei Asia reported on Monday.The government, in collaboration with the Japan AI Safety Institute (AISI), will outline procedures for identifying and addressing system flaws using high-performance AI capable of autonomously detecting code weaknesses, the publication said.Digital Transformation Minister Hisashi Matsumoto is scheduled to hold a meeting on Monday with senior officials from key ministries, including the Ministry of Economy, Trade and Industry and the Financial Services Agency, to advance this initiative, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Asia Week Ahead: Central Bank Moves, Inflation Data, Trade Numbers and GDP Reports

For this week in Asia, the economic calendar features a busy slate of macro releases across the region.The week begins with a slew of closely watched indicators from China, including industrial production and unemployment data.On Tuesday, markets turn to Japan's first-quarter GDP estimates and Malaysia's April inflation print.Wednesday features policy decisions in Indonesia and China, along with trade data from Taiwan.Thursday brings Japan's latest trade figures and Australia's closely watched labor market report. On Friday, Japan returns to the spotlight with its April inflation print.Here's what to watch in the week ahead.MONDAY, May 18The week kicked off with a flurry of macro releases from China.Industrial production: A 4.1% year-over-year expansion was recorded in April, sharply slowing from the 5.7% growth in March and way below expectations of a 5.9% rise.Retail sales: Growth decelerated to 0.2% year on year in April, versus 1.7% a month prior.Unemployment: The rate eased to 5.2% in April from 5.4% a month earlier.Meanwhile, prices of new residential properties in China's first-tier cities grew 0.1% month on month in April, decelerating from the 0.2% expansion in March.Chinese investments in real estate development fell 13.7% year on year to 2.397 trillion yuan between January and April.Outside China, Thailand reported that its gross domestic product grew at a faster rate of 2.8% in the first quarter of 2026 from 2.5% in the last three months of 2025.In Singapore, April trade showed a 24.5% year on year rise in non-oil domestic exports, extending the 15.3% increase in the previous month.Elsewhere, New Zealand's services sector showed a modest improvement in April but remained in contraction, with persistent cost pressures and global shipping disruptions continuing to weigh on sentiment, according to BusinessNZ.The BusinessNZ Performance of Services Index rose to 48.9 in April from 46.2 in March. A reading below the 50-point mark points to contraction.TUESDAY, May 19Markets will turn their attention to Japan's preliminary first-quarter GDP.Economists at ING said they expect the economy to grow at a similar rate as the previous quarter's 0.3% on a seasonally adjusted basis. "The war's impact on GDP should be minimal in 1Q26," the bank said in a preview.Meanwhile, Malaysia will disclose its April inflation print, with Trading Economics expecting prices to rise at a faster pace than the 1.7% year over year growth seen in March. According to the data platform, Malaysia's CPI could rise at a rate of 2.7%.In Australia, the Reserve Bank of Australia's meeting minutes will add color to the central bank's recent decision to increase the official cash rate by 25 basis points to 4.35%.CommBank said the minutes may provide more details on the board's discussion and how members were assessing the impact of the conflict around Iran.A consumer confidence report, due for release the same day, will capture sentiment over the most recent RBA rate hike and the ongoing conflict in the Middle East.Lastly, Hong Kong will report April unemployment stats on the same day.WEDNESDAY, May 20Bank Indonesia will meet for its monetary policy meeting and could raise rates by 25 basis points to 5% amid a depreciation of the local currency and a shift in expectations for Federal Reserve rate cuts, which bodes unfavorably for the Indonesian rupiah, ING forecasted.China will similarly set its one-year and five-year loan prime rates, with markets expecting no change in the prevailing rates of 3% and 3.5%, respectively.Trade data from Taiwan and Malaysia will be due.Taiwan is once again expected to show a "strong reading" when it releases April export orders data, with growth topping 54% year on year, ING said in a preview.The island nation started the year "quite strongly" amid external demand for its main high-tech products, which is expected to continue, according to the note.Meanwhile, Malaysia's trade surplus is expected to narrow to 10.5 billion ringgit from 24.6 billion ringgit in the month prior, Trading Economics forecasted.The Reuters Tankan Index for May, a key gauge of Japanese business confidence, will be due the same day.THURSDAY, May 21Japan will release several economic indicators on Thursday, including April trade data and March machinery orders.The country is expected to report a trade deficit of 29.7 billion yen for the month, reversing from a surplus of 667 billion yen in March, according to a Trading Economics consensus.New Zealand will similarly report its April trade balance, with analysts forecasting a trade surplus of around NZ$840 million, according to a Trading Economics consensus.Neighboring Australia will report labor data for April. Westpac expects unemployment to remain at 4.3%.Elsewhere, Hong Kong will report April inflation data while Macau will disclose first-quarter retail sales stats. In South Korea, the April producer price inflation data will be due.On the activity front, S&P Global will release flash purchasing managers' index reports covering May manufacturing, services, and composite activity in India, Australia and Japan.FRIDAY, May 22Japan's April inflation print will capture headlines on Friday, giving markets a look into how the energy shock from the Middle East conflict is impacting the economy.Economists at ING said energy effects may have a limited impact on growth but a greater impact on inflation, which is expected to clock in at 1.8% year on year in April -- up from 1.5% in March."Higher energy costs are expected to increase overall inflation. The impact, though, will likely be still less significant than that observed in other Asian and developed countries," ING said in a note.Inflation data will also be due in Macau.Meanwhile, Taiwan could see a marginal drop in its unemployment when it releases April labor stats. According to Trading Economics, Taiwan's jobless rate could go down to 3.3% from 3.35%.New Zealand is expected to see a "muted" rise in real retail sales when reporting its Q1 data, Westpac said in a preview. The bank expects a rise of 0.2% for the first three months of the year, versus the 0.9% growth recorded in the previous quarter. "The latter part of March saw fuel prices rising sharply, and that has been a drag on spending," Westpac said.Lastly, South Korea will release a report capturing consumer confidence for May. ING said it expects consumer sentiment to deteriorate further amid inflation hikes and energy headwinds.

Japanese Shares Fall as Oil Prices Climb on US-Iran Deadlock

Japanese equities closed lower on Monday, in line with its Asian peers, amid mounting pressure from rising oil prices as the negotiations in the Iran conflict stall.The Nikkei 225 closed down 593.34 points, or 1.0%, at 60,815.95.Fresh drone attacks in the Gulf regions pushed oil prices and bond yields higher on Monday, according to a Reuters report.Brent crude rose to over $111 per barrel, as the talks for the restoration of the passage through the strategic Strait of Hormuz remain unresolved.Investor sentiment was further dampened by U.S. President Donald Trump, warning that the "clock is ticking" before the U.S. launches harder strikes.A report by Nikkei Asia also indicated that yields on 10-year Japanese government bonds hit their highest in 29 years at 2.8% on Monday, amid investor concerns over inflation and the fiscal situation.On the corporate side, shares of Japan Post Insurance's (TYO:7181) slumped over 11% on Monday, even as its net income attributable jumped 37% to 168.80 billion yen for the fiscal year 2025 from 123.47 billion yen a year earlier.

Japanese Shares Decline at Open as Oil Prices Surge on Iran Stalemate

Japanese equities opened lower on Monday as deadlocked negotiations over the Iran conflict drove oil prices higher and intensified a rout in global bond markets.The Nikkei 225 dropped 109.4 points, or 0.2%, to start the trading session at 61,299.87.Brent crude advanced to above $110 per barrel, amid a lack of progress in talks to restore passage through the strategic Strait of Hormuz and following U.S. President Donald Trump's warning that Iran faces a "ticking clock" to reach an agreement.Meanwhile, the White House announced that Beijing has committed to purchasing at least $17 billion in U.S. agricultural products each year through 2028 after Trump's two-day summit in China.Monday's Group of Seven meeting coincides with the anticipated swearing-in of Kevin Warsh, Trump's nominee, as the new chair of the U.S. Federal Reserve.

Market Chatter: Bain Capital Earmarks Half of $10.5 Billion Asia Fund to Japan

Bain Capital allocated half of the capital from its newly established $10.5 billion Asia-focused private equity fund to Japan, representing the firm's largest-ever regional fund, Nikkei Asia reported on Monday.The firm plans to use the new fund for major Japanese deals, including take-private transactions and divestitures of non-core operations, the news daily said.Bain's recent deals include the 510 billion yen acquisition of Tanabe Mitsubishi Pharma (now Tanabe Pharma) from Mitsubishi Chemical (TYO:4188) in July 2025, followed by the 810 billion yen purchase of Seven & i's (TYO:3382) supermarket and restaurant subsidiary York Holdings.By the end of 2025, Bain's global AUM reached 225 billion, with Japan the second-largest market after the U.S.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Japan's Machine Tool Orders Jump 45% in April

Japan's machine tool orders recorded a substantial year-over-year increase of 45.1%, reaching nearly 188.97 billion yen in April, according to the Japan Machine Tool Builders' Association.This growth exceeded the 28.1% rise seen in the previous month, driven by advances in both external and internal demand.Export orders rose by 45.7%, while domestic orders climbed 43.4%.On a month-over-month basis, however, orders slipped 2.3% in April.Looking at the first four months of the year, total machine tool orders grew 30.9% compared to the same period in 2025, reaching 674.76 billion yen, with overseas demand up 37.9% and domestic orders rising 13.5%.

Tech Sell-Off Batters Asian Stock Markets

Asian stock markets retreated Friday as traders weighed geopolitical concerns, inflation, labor issues, and booked profits in regional equity indices that recently struck record highsHong Kong, Shanghai, and Tokyo finished in the red, while Seoul's KOSPI index declined 6%, including an 8.6% tumble in bellwether Samsung Electronics shares after reports of a possible work stoppage at the semiconductor giant.The Samsung Electronics labor union plans an 18-day strike, involving 50,000 employees, from May 21 to June 7, reported The Chosun Daily news organization.In Japan, the Nikkei 225 opened evenly on Wall Street cues but declined in trading, finishing off 2% after Tokyo reported that producer prices had jumped higher in April.The benchmark Nikkei 225 eased 1,244.76 to 61,409.29, as losing issues outnumbered gainers 120 to 99.Leading the upside was industrial engineering and metal melting enterprise Dowa, up 16.1%, while printing outfit Toppan declined 16.6%.In economic news, Japan's producer price index rose 4.9% year-on-year in April, rising from the 2.9% gain logged in March and triggering concerns that the Bank of Japan will soon raise interest rates.In Hong Kong, the Hang Seng Index opened lower and declined steadily, closing down 1.6% after the recent Beijing-Washington summit concluded without any major trade agreements announced. Tech issues led the decline.The broad gauge Hang Seng fell 426.31 to 25,962.73, as losing issues outnumbered losers 76 to 13. The Hang Seng TECH Index lost 2.7% on the day, while the Mainland Properties Index fell 1.2%.Leading the upside was Wuxi Biologics, gaining 3.2%, while JD Health International declined 6.6%.On the mainland, the Shanghai Composite fell 1% to 4,135.39.On the other regional exchanges, the Taiwan TWSE declined 1.4%; the Australian ASX 200 declined 0.1%; the Singapore Straits Times Index fell 0.1%, and the Thai Set declined 1.4%. In late trading in Mumbai, the Sensex was down 0.2%The MSCI All Country Asia Pacific Index fell 2.1% on the day.

Japan Shares Tumble After BOJ Warns of Broader Summer Price Increases

Japanese shares ended sharply lower on Friday following the Bank of Japan warned that rising energy costs linked to the Middle East conflict could trigger another broad-based round of price increases around summer, raising concerns that persistent inflation may weigh on consumer spending and corporate margins.The Nikkei 225 fell 1.99%, or 1,244.76 points, to close at 61,409.29.Japanese service-sector firms are accelerating price increases as rising raw material, labour and energy costs squeeze margins, with some companies planning further hikes around summer, the Bank of Japan said in a regional survey report, according to Reuters.The BOJ said food makers, restaurants and hot spring operators were among firms moving more quickly to pass on higher costs linked partly to the Middle East conflict.Japan's producer price index rose 4.9% on year in April, the fastest pace in three years, and gained 2.3% from March, driven by higher chemical prices, up 9.2%, as well as beverages and food prices, up 4.1%.The central bank also said companies are raising prices faster than during the 2022 cost surge following the Ukraine war, as firms have become more accustomed to passing on higher expenses.On the corporate front, Dainichiseika Color & Chemicals Mfg (TYO:4116) rose 1% after saying it will carry out a group-wide restructuring to improve profitability and growth potential, including reviewing non-core businesses, streamlining operations and reorganising production sites, while targeting ROE of 9% and ROA of 5% over the longer term.Key Coffee (TYO:2594) fell 1% after outlining plans to raise ROE to 3% in fiscal 2027 and 5% by fiscal 2030, even as fiscal 2025 net income attributable to owners of parent climbed to 988 million yen from 214 million yen and net sales rose to 93.07 billion yen from 77.78 billion yen.Remixpoint (TYO:3825) slipped 1% after saying it will transfer its electricity retail business to a wholly owned subsidiary through an absorption-type company split effective Oct. 1, aiming to strengthen risk management and speed up decision-making amid volatile energy markets.

Japan Earnings Wrap: Hamamatsu and Square Enix Soar, Nexon Slides

Japanese stocks reporting earnings traded mixed on Friday, with gains led by semiconductor equipment makers and game developers, while some publishers and entertainment firms came under pressure.Hamamatsu Photonics K.K. (TYO:6965) rose 23% after reporting first-half results. Profit attributable to owners of parent fell 7.2% to 9.22 billion yen, while net sales increased 5.4% to 112.50 billion yen. Earnings per share came to 31.30 yen, down from 32.95 yen.The company forecast profit attributable to owners of parent of 16.4 billion yen, up 15.5%, and net sales of 232 billion yen, up 9.4%, for the fiscal year ending September 2026. Basic earnings per share are expected at 56.33 yen.Square Enix (TYO:9684) rose over 5% after reporting full-year results. Profit attributable to owners of parent rose 21.3% to 29.62 billion yen, while net sales fell 8.3% to 297.66 billion yen. Earnings per share came to 82.08 yen, up from 67.79 yen.The company forecast profit attributable to owners of parent of 31 billion yen, up 4.7%, and net sales of 298 billion yen, up 0.1%, for the fiscal year ending March 2027. It expects basic earnings per share of 85.99 yen.Nexon (TYO:3659) dropped 12% after reporting first-quarter results. Profit attributable to owners of parent rose 118% to 57.23 billion yen, while revenue increased 33.6% to 152.23 billion yen. Earnings per share came to 72.02 yen, up from 32.07 yen.For the six months ending June 2026, Nexon forecasts profit attributable to owners of parent of 73.31 billion to 80.40 billion yen, revenue of 259.19 billion to 271.91 billion yen, and earnings per share of 92.64 yen to 101.60 yen.

Japan's Producer Price Index Rises 2.3% in April

Japan's producer price index (PPI) rose 4.9% on year in April and gained 2.3% from March, according to a preliminary report released by the Bank of Japan on Friday.The PPI had risen by a revised 2.9% on-year in April.Pushing up the PPI in April were chemicals up 9.2% on year, beverages and foods, up 4.1%, and transportation inched up 1.6%, among other items.In contrast, electric power, gas and water bills slipped 1.3% on year in April.The PPI measures prices at the factory gate, or those charged to businesses and distributors.It is distinct from the consumer price index (CPI), which measures prices in retail locations. The PPI is considered a precursor to future movements in the CPI, as retailers try to recoup costs.The Bank of Japan targets 2% annual CPI. Japan's March 2026 national CPI was 1.5%, up from 1.3% previously, while the Tokyo Core CPI - a leading indicator - softened to 1.5% in April.

Market Chatter: Japan Banks Ramp Up Cyber Defenses Over Anthropic-Highlighted Risks

Japan's three largest banks are stepping up cybersecurity measures following warnings that Anthropic's Claude Mythos artificial intelligence model could expose vulnerabilities in financial systems, Nikkei reported Friday.The banks are expected to gain access to the model as early as this month to help identify software flaws that developers may have overlooked, according to the report.Mitsubishi UFJ Financial Group (TYO:8306) plans to establish a dedicated cybersecurity team, while Mizuho Financial Group (TYO:8411) has formed a cyberattack task force. Sumitomo Mitsui Financial Group (TYO:8316) has also created a working group to review systems across the company, the report said.The International Monetary Fund warned this month that cyberattacks using advanced AI models such as Mythos could threaten financial stability if multiple institutions are targeted simultaneously, potentially disrupting settlements and triggering liquidity stress, according to the report.Japan's Financial Services Agency has launched a public-private working group involving major banks, technology companies and industry bodies to discuss countermeasures, including stronger management involvement and increased cybersecurity investment, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)