Nikkei 225

Japan's Machine Tool Orders Rise 37.4% in May

Japan's machine tool orders increased 37.4% year over year in May to 176.8 billion yen, according to preliminary data from the Japan Machine Tool Builders' Association released Tuesday.The pace of increase eased from the 45.1% expansion in April, but was slightly above Trading Economics' 37% forecast.The sustained expansion in May was driven by a 37.7% rise in foreign demand to 131.8 billion yen and a 36.4% increase in domestic orders to 45 billion yen.

Fitch Assigns A Rating to Japan's Outstanding Government Bonds

Fitch Ratings has placed an A rating on Japan's previously unrated outstanding long-term local currency government bonds, according to a recent release.Following the action, all of Japan's outstanding long-term local-currency government bonds carry Fitch ratings.The bonds' rating is equivalent to Japan's long-term local currency issuer default rating and sensitive to changes in the latter.Significant shifts in the country's government debt-to-GDP ratio or real GDP growth prospects could lead to future actions on the sovereign rating, Fitch said.

Japanese Investors Sell JPY2.72 Trillion of Foreign Stocks in May

Japanese investors sold 2.72 trillion yen worth of foreign stocks net in May, according to data from the Ministry of Finance on Monday.The selloff marked the fastest pace in about five years amid the Middle East conflict and questions over a tech-driven market rally, Reuters reported separately.Investors appeared to be swapping riskier assets for foreign debt, with purchases reaching a net 2.9 trillion yen during the month, the most since May 2025, according to the report.

Japanese Stocks Open Higher as Middle East Tensions Ease

Japanese shares rose at Tuesday's open following a recovery on Wall Street, as Middle East tensions showed signs of cooling.The Nikkei 225 climbed 600.7 points or 0.9% to open at 64,625.26.Iran and Israel agreed to reduce strikes that had threatened peace talks, according to various reports, while Brent crude held steady around $94 per barrel after paring previous gains.

Market Chatter: Japanese Firms' Time Deposits Rise 22% as of March

The balance of time deposits by corporations in Japan rose 22% year over year to 76.95 trillion yen as of March, Nikkei Asia reported Tuesday, citing data from the Bank of Japan.The figure is now close to a 26-year high, the report said.The balance of term deposits in the country remained mostly steady in the 40 trillion yen to 50 trillion yen range for about two decades before 2023, but began rising sharply amid increasing interest rates, 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.)

Tech Rout Visits Asian Stock Markets

Asian stock markets joined the global tech rout on Monday, after declines last week in semiconductor shares on Wall Street, and on concerns the Federal Reserve may soon raise rates after the strong US jobs report on Friday.Investors sentiments were also undercut by media reports of fresh hostilities in the Persian Gulf.Brent crude prices rose 3.3% to $96.16 a barrel, during trading hours.Hong Kong, Shanghai and Tokyo finished in the red, as did other regional exchanges. Seoul's tech-heavy KOSPI index fell 8.3%, following on a 5.5% decline logged on Friday.In Japan, the Nikkei 225 opened lower and could not recover, finishing off 3.9% lower.The benchmark Nikkei 225 fell 2,563.52 to 64,024.60, as losing issues outnumbered losers 162 to 61.Leading the upside was entertainment-house Toho, rising 6.8%, while silicon wafer-maker Sumco declined 12.8%.In economic news, Japan's Q1 gross domestic product (GDP) expanded by an annualized real 1.8%, down from an initially reported increase of 2.1%, reported the Cabinet Office.In Hong Kong, the Hang Seng Index opened lower and waffled thereafter, closing down 1.2% as traders backed away from property and tech issues.The broad gauge Hang Seng fell 304.89 to 24,657.06 as losing issues outnumbered gainers 63 to 24. The Hang Seng TECH Index lost 2.7% on the day, while the Mainland Properties Index fell 1.7%.Leading the upside was China Mengniu Dairy, gaining 3.1%, while search-engine giant Baidu declined 7.6%.On the mainland, the Shanghai Composite fell 1.7% to 3,959.34.On the other regional exchanges, the Taiwan TWSE declined 3.5%; the Singapore Straits Times Index fell 1.7%, and the Thai Set declined 1.3%. In late trading in Mumbai, the Sensex was down 1%. Trading floors in Sydney were closed on holiday.The MSCI All Country Asia Pacific Index fell 3.2% on the day.

Asia Week Ahead: Inflation Prints; GDP Estimates; and Trade Balance

For the week ahead in Asia, inflation, trade and growth data will be in focus as investors assess the region's economic momentum.The week opens with Japan's revised first-quarter GDP figures, followed by trade data from China and Taiwan on Tuesday.Mid-week, China's consumer and producer inflation reports will dominate headlines, while Japan will release producer price data.Thursday will be led by unemployment figures from South Korea and Malaysia, before Friday brings India's inflation report.Here's what to watch in the week ahead.MONDAY, June 8The week was off to a relatively light, but notable start with Japan's first-quarter GDP growth rate.Japan's economy expanded at an annualized rate of 1.8% in the first quarter, according to final data released by the Cabinet Office. The reading was revised down from the preliminary estimate of 2.1% growth, but exceeded the market consensus forecast for a 1.3% increase, according to Trading Economics.The data comes as attention turns to the Bank of Japan's June 15-16 policy meeting, where policymakers are expected to consider another interest-rate increase. The growth figures are unlikely to derail expectations for further policy tightening.TUESDAY, June 9Data readouts will pick up Tuesday, starting with China's trade figures for May.Economists at ING said they expect China's exports to rise 19.5% year-on year and imports to gain 36.4% for a trade surplus of $86.5 billion. The surplus would be an increase from the $84.8 billion recorded in April, thanks in part to higher tech prices, which are boosting both export and import prices, ING said.Taiwan will similarly report trade figures, with ING expecting the island nation's trade surplus to rise to $15.5 billion from $14.4 billion in April. "Strong export orders from previous months suggest external demand remains robust amid the AI boom," ING said in a preview.Markets will be watching for any revisions to South Korea's first-quarter GDP growth rate when the Bank of Korea releases its final estimate on Tuesday.The central bank's advance estimate indicated that South Korea's real GDP increased 3.6% annually and 1.7% on a quarterly basis.In Australia, a pair of reports will capture business and consumer sentiment, while in the Philippines, unemployment stats will be due.Other key data scheduled for the day include Japan's machine tool orders.WEDNESDAY, June 10China's consumer and producer price inflation will dominate headlines Wednesday.Consumer prices are expected to show an uptick of 1.3% year on year in May from 1.2% a month prior, reflecting higher manufacturers' input and output prices due to the Middle East conflict, the Wall Street Journal reported.Japan will similarly report its May producer prices, with analysts expecting the PPI to accelerate to 5.5% year on year from 4.9% in April, according to a Trading Economics consensus.Indonesia will release its May consumer confidence report on the same day.THURSDAY, June 11Unemployment data from South Korea and Malaysia will be the highlight of the day.According to Trading Economics, South Korea's unemployment rate could remain unchanged at 2.80% in May. The platform similarly forecasted that Malaysia's unemployment would remain steady at 2.90%, a level it has held since November 2025.A forward-looking report on consumer inflation expectations will be due in Australia. According to Trading Economics, consumer inflation expectations could rise to 6.5% for June from the 5.6% estimated in May.Meanwhile, Indonesia will report its retail sales stats for April.FRIDAY, June 12India's May inflation data will be in the news Friday.Economists at ING said they expect consumer prices to pick up to 3.9% year on year from the 3.48% recorded in the month prior due to a rise in gasoline prices. Still, the figure would be below the Reserve Bank of India's 4% target."The key risk to the outlook lies in potential second-round effects on food inflation. Fertiliser shortages, alongside the rising probability of an El Niño event, could exert upward pressure on food prices in the coming months and warrant close monitoring," ING said in a preview.Friday will also feature industrial production reports from Japan, Malaysia, and Hong Kong, with Malaysia additionally reporting its retail sales stats for April.In Thailand, the consumer confidence report for May will be due.On the activity front, the Business NZ manufacturing purchasing managers' index report will be due in New Zealand. CommBank said it expects manufacturing activity in May to stabilize, or even lift somewhat, given a decline in fuel prices over late April and May.The Business NZ PMI previously dropped to 50.5 in April from 52.8 in March.

Japanese Shares Close Lower on Renewed Middle East Tensions

Japanese shares closed Monday's session lower amid expectations of prolonged high U.S. interest rates.The Nikkei 225 retreated 3.9%, or by 2,563.52 points, to end at 64,024.60.Investor sentiment was also dampened by the rise in oil prices on Monday, adding to concerns over inflation, after a flare-up of tensions between Iran and Israel over the weekend. The two countries exchanged strikes for the first time since a ceasefire was agreed between them in April.On the domestic front, Japan's economy expanded at an annualized rate of 1.8% in the first quarter. The reading was softer than the preliminary estimate of a 2.1% increase, and against the 0.7% growth in the previous quarter, according to Cabinet Office data released on Monday.On the corporate side, shares of Tomoe Engineering (TYO:6309) closed 5% higher after the company raised its earnings forecast for the fiscal year ending Oct. 31, with projected net income increasing to 4.4 billion yen from 4.2 billion yen.Meanwhile, Sparx (TYO:8739) said its assets under management rose 6.8% from a month earlier to 2.601 trillion yen in May. The company's shares closed down over 1%.

Japan Stocks Open Lower After Wall Street Tech Selloff

Japanese equities opened Monday's trading lower as rising expectations of prolonged high U.S. interest rates triggered Wall Street's AI selloff.The Nikkei 225 fell 640.6 points or nearly 1% to open at 65,947.56.At home, Japan's economy expanded at an annualized rate of 1.8% in the first quarter, according to Cabinet Office data released on Monday.Market participants are also raising bets on a potential interest rate increase by the Bank of Japan at its upcoming policy meeting next week, as the nation faces inflationary pressures.Elsewhere, Middle East hostilities escalated following Iran's missile launches toward Israel.

Market Chatter: Japanese Corporate Real Estate Sales Hit 18-Year High as Firms Boost Efficiency

Corporate property sales in Japan rose 9% to 1.23 trillion yen in 2025, marking the highest level in nearly two decades, as listed companies shed assets to improve profitability, Nikkei reported on Sunday.Food maker Ajinomoto (TYO:2802) sold its Tokyo headquarters and will relocate functions this summer, while Yamato Holdings (TYO:9064) offloaded four properties, including its Ginza office, the news daily said.Engineering firm IHI (TYO:7013) planned three sales in Koto ward, expected to generate 56.8 billion yen in capital gains, over 80% of which will be booked this fiscal year, the publication said.The trend reflects growing pressure on Japanese firms to streamline operations and raise return on equity, aligning with broader shareholder-driven governance reforms, 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.)

Japan Books 3.9 Trillion Yen in April Current Account Surplus

Japan booked a current account surplus of 3.908 trillion yen in April, up from 2.370 trillion yen a year earlier, the Ministry of Finance said in a Monday release.However, the latest figure was down from the record-high surplus of 4.682 trillion yen in March.The primary driver of the increase was a widening of the trade surplus in the goods account.

Market Chatter: China's Rare Earth Exports to Japan Plunge, Pushing Firms to Seek Alternatives

China's shipments of seven restricted rare earths to Japan fell 88% in March and 82% in April, following tighter export rules introduced in January, Nikkei Asia reported on Monday.Key elements like dysprosium and terbium have seen zero exports since January, while yttrium shipments dropped over 90% in the first four months of the year, the publication said.China dominates global rare earth production and refining, accounting for 70% and 90% respectively, the news agency said.In response, Japanese companies are turning to alternative sources such as Australia, where JX Advanced Metals (TYO:5016) has acquired a stake in mineral deposits, the report said.The export curbs follow geopolitical tensions related to comments by Japan's prime minister regarding Taiwan, according to Nikkei.(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 Q1 Annualized Final GDP Rises 1.8%, Missing Early Estimate

Japan's economy expanded at an annualized rate of 1.8% in the first quarter, according to Cabinet Office data released on Monday.The reading was softer than the preliminary estimate of a 2.1% increase, and against the 0.7% growth in the previous quarter.The final figure also missed the market consensus forecast of a 1.3% expansion, according to Trading Economics.

Japan's Annualized GDP Grows 1.8% in Q1

Japan Bank Lending Growth Accelerates to 5.7% in May

Japan's bank lending growth accelerated in May, with total loans and discounts at major, regional and shinkin banks rising 5.7% year over year to 670.8 trillion yen, according to preliminary data released by the Bank of Japan on Monday.The pace of growth accelerated from the 5.4% expansion in April, and was higher than the consensus forecast of 5.6%, according to Investing.com.Loans at major and regional banks alone rose 6.3% to 591.4 trillion yen in May. Major banks led the increase, with lending climbing 8.7% to 275.3 trillion yen, while regional banks posted 4.3% growth to 316 trillion yen. Foreign banks' yen-denominated lending rose 24.6% to 7.1 trillion yen.On the deposits side, deposits and certificates of deposit at city, regional and shinkin banks rose 2.1% year over year to 1,082.6 trillion yen in May.

Market Chatter: Japanese Asset Managers Tighten ROE Thresholds to Push Corporate Reforms

Sumitomo Mitsui Trust Group's (TYO:8309) and Mitsubishi UFJ Financial Group's (TYO:8306) units are raising their minimum return on equity (ROE) requirements from 5% to 8% for voting on board appointments, Nikkei Asia reported on Monday.The subsidiaries are Amova Asset Management and Mitsubishi UFJ Financial Trust and Banking, the report said.Amova will reject director nominations if a company's ROE stays below eight for three consecutive years and ranks in the sector's bottom half, unless its price-to-book ratio exceeds one, the news daily said.As of March, 43% of Prime market firms and 60% of Standard market firms remained below the 8% line, despite Topix 500 companies averaging roughly 10%, the publication said.An executive at Sumitomo Mitsui DS Asset Management noted that rising average ROE has made 8% the new baseline, the report said.The stricter standards aim to push companies toward better capital efficiency and reduced strategic shareholdings, 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.)

Tech Retreat, Persian Gulf Outlook Blunt Asian Stock Markets

Asian stock markets staged a retreat Friday, as traders warily eyed rich tech-sector valuations, overnight declines on Wall Street, and ongoing Middle East hostilities.Hong Kong, Shanghai and Tokyo finished in the red, as did other regional exchanges.Seoul's tech-centric KOSPI Index closed down 5.54%, tracking Thursday's decline in US semiconductor stocks, after US chipmaker Broadcom (AVGO) projected Q3 AI-related revenue would miss market expectations.In Japan, the Nikkei 225 opened lower and could not recover, finishing off 1.3% as traders also edged away from high-flying tech issues.The benchmark Nikkei 225 fell 882.57 to 66,588.12, although gaining issues outnumbered losers 129 to 95, as declines were concentrated in tech- and AI-related issues.Leading the upside was Japan Steel Works, up 9%, while silicon wafer-maker Sumco declined 7.4%.In economic news, average nominal wages in Japan rose 3.5% year over year in April, and gained 1.9% in real terms, reported the Ministry of Health, Labor and Welfare.In Hong Kong, the Hang Seng Index opened lower and declined thereafter, closing down 1.2%.The broad gauge Hang Seng fell 291.45 to 24,961.95, as losing issues outnumbered gainers 57 to 26. The Hang Seng TECH Index lost 1.8% on the day, while the Mainland Properties Index fell 0.9%.Leading the upside was shipping line Orient Overseas, gaining 6%, while Semiconductor Manufacturing International declined 7.2%.On the mainland, the Shanghai Composite fell 0.7% to 4,027.74.On the other regional exchanges, the Taiwan TWSE declined 1.3%; the Australian ASX 200 declined 0.7%; the Singapore Straits Times Index fell 0.4%, and the Thai Set declined 0.8%. In late trading in Mumbai, the Sensex was down 0.1%The MSCI All Country Asia Pacific Index fell 1.6% on the day.

T&D Insurance Group's Subsidiary Sale Has Limited Business, Financial Risk Impact, S&P Says

T&D Insurance Group's sale of subsidiary T&D Financial Life has a narrow impact on its business and financial risk profiles, S&P Global Ratings said in a Friday release.S&P views the subsidiary's share in the Japanese insurance group as not significant.The group, which is the holding company of Daido Life Insurance and Taiyo Life Insurance, will divest 85.1% of its shares in T&D Financial Life Insurance, with completion expected in the second half of fiscal 2027.Although the subsidiary's contribution to new business premiums is high at about 40%, its total earnings and embedded value shares are low at about 4% to 5%, the rating agency said.The subsidiary focuses on low-profitability savings-type insurance products.The sale is in line with the group's efforts to evolve its revenue structure and reallocate capital toward higher-growth areas, S&P said.