Nikkei 225

Nikkei 225TYO:9039TYO:9984

Japanese Shares Close Higher as Cabinet OKs 3.1 Trillion Yen Energy Package

Japanese shares extended their opening gains to close stronger on Wednesday, crossing the 68,000 level, driven by the positive movement in the broader Asian markets and the local government's initiatives to uplift the economy.The Nikkei 225 index surged 1,667.89 points, or 2.5%, to finish at a record 68,402.13.Japan's cabinet authorized a 3.1 trillion yen additional budget aimed at shielding households from inflation worsened by the Middle East conflict, Bloomberg News reported Wednesday.As per the report, the supplementary package establishes a 2.5 trillion yen reserve fund to offer subsidies for countering higher commodity prices, including gasoline.Investors are also keenly eyeing Bank of Japan Governor Kazuo Ueda's planned speech for hints on the outlook for interest rates.Media reports quoted Finance Minister Satsuki Katayama as saying that the government "will respond appropriately at any time as necessary" on the falling value of the yen.On the corporate side, SoftBank Group's (TYO:9984) telecom unit SoftBank Corp. has been shortlisted for a potential bid on Blackstone's payments services provider SP.LINKS Inc., Bloomberg reported Wednesday, citing sources.Also, Sakai Moving Service's (TYO:9039) May sales rose 4.7% from a year earlier to 8.12 billion yen, according to a Wednesday filing on the Tokyo Stock Exchange.

Nippon Life Insurance Enters Investment Management Deal With Blackstone

Nippon Life Insurance, Japan's largest life insurer, said it entered a preliminary agreement with Blackstone for investment management services in the private credit and real estate sectors, according to a statement Wednesday.Under the memorandum of understanding, Nippon Life Insurance will access "high-quality investment opportunities" to enhance value to its policyholders, it said.

Market Chatter: Japan's Cabinet Approves 3.1 Trillion Yen Supplementary Budget to Ease Middle East Woes

Japan's cabinet authorized a 3.1 trillion yen additional budget aimed at shielding households from inflation worsened by the Middle East conflict, Bloomberg News reported Wednesday.The supplementary package establishes a 2.5 trillion yen reserve fund to offer subsidies for countering higher commodity prices, including gasoline, the report said.Aside from the primary inflation fund, the budget dedicates 513 billion yen to replenish current fiscal year reserve pools and 100 billion yen for regional grants, the report said.The government will keep its calendar-based market bond issuance unchanged at 168.5 trillion yen by canceling existing debt from the previous fiscal year, according to the report.This move looks to soothe investor worries regarding national debt, the report said.The cabinet will submit the fiscal measure to parliament, with approval expected as early as Friday, Bloomberg said.The 10-year government bond yield ticked up 2.5 basis points to 2.595% during morning trading, 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.)

ASX 200^BSE^HNX^HOSEHang Seng^JKSEKOSPINikkei 225^NSENifty 50^SETShanghai Composite^SZSETaiwan Weighted

US Markets64d ago

Asian Banking Sector Surges Past Automobiles to Lead May Activity Growth, S&P Global Survey Finds

Most Asian business sectors expanded in May, with banking overtaking the automobile industry, according to the S&P Global Asia Sector PMI released on Wednesday.Leading the upturn for the first time in seven months, the banking sector expanded at its second-steepest rate in over five and a half years. The growth follows a previous S&P Global forecast warning that credit losses in the Asia-Pacific banking sector could surge by approximately $180 billion due to the ongoing conflict in the Middle East.The automobile sector, last month's top performer, slipped to second place, though its pace of growth remained historically high.Of the 18 sectors monitored, only forestry and paper products, alongside construction materials, recorded a contraction in new orders; however, these declines were softer than in the previous month. In contrast, the transportation sector posted the strongest surge in new orders, despite looming concerns over U.S.-Iran negotiations.Volatility persists in the energy and oil industries due to the precarious state of U.S.-Iran talks aimed at ending the Middle East conflict."Oil prices received a boost yesterday as talks between the US and Iran appeared to break down -- again. This has become a common pattern in recent months, and there are still plenty of mixed messages," ING'S Warren Patterson and Ewa Manthey said in a Tuesday note. "As a result, oil prices continue to be whipsawed by quickly changing headlines."Operating expenses increased across all 18 sectors. S&P Global highlighted that real estate recorded a renewed rise in input prices, while the chemicals sector posted the sharpest cost inflation rate.All sectors increased their selling prices except for the consumer services sector.

US Markets64d ago

Japan's Service Sector Stagnates in May on Surging Costs

Japan's service sector stagnated in May as supplier costs surged amid the ongoing conflict in the Middle East.The S&P Global Japan Services Business Activity Index fell to the neutral 50.0 mark from 51.0 in April, ending a 13-month streak of expansion. A reading of 50.0 indicates no change in business activity from the previous month."The ongoing war in the Middle East continued to exert pressure on the economy, most notably by driving a substantial increase in costs for businesses," Annabel Fiddes, S&P Global Market Intelligence's economics associate director, said. "Price indicators in May pointed to a record rise in selling prices for goods and services amid a near unprecedented increase in business costs, largely due to widespread supplier price hikes and supply chain disruption, but also higher labor costs."Average input prices rose to a 43-month high as the war in Iran triggered a spike in fuel, energy and raw material prices.In April, Japan's inflation slowed down, with the consumer price index decelerating to a 1.4% rise from the prior month's 1.8% growth, according to data from the Statistics Bureau.Some survey participants said activity levels rose because of higher sales and new business lines, while others said demand was weak and the growth of new orders slowed down, S&P Global said.Government data showed that firms' spending during the first quarter was flat. Capital spending dropped 2%, a far cry from the 6.5% growth in the previous quarter, reflecting cautiousness in spending amid the Middle East war, which brought disruption in the global supply chain.Meanwhile, employment grew at the slowest rate in nine months, S&P Global said. Government data showed that the number of employed people in April rose to 68.8 million from 68.2 million in March, while the unemployment rate eased month on month to 2.5% from 2.7%.Business sentiment stayed weaker than the post-pandemic trend despite slightly improving for the second straight month, as businesses are concerned over geopolitical uncertainty, rising costs and the ageing population, according to the ratings firm.Overall, the S&P Global Japan Composite PMI Output Index fell to 51.1 in May from 52.2 in April, pointing to only modest growth in broader private sector business activity.

Market Chatter: Regional Japanese Banks Retreat from China as Costs Rise and Client Needs Shift

Rising labor costs and softening demand from Japanese manufacturers are driving Japan's regional banks to shift from China to Southeast Asia and India, creating hurdles for suppliers tied to the Chinese market, Nikkei Asia reported Wednesday.According to Nikkei's analysis of 61 regional lenders, China's share of overseas offices fell from 50 in April 2021 to just 40 by the end of March, despite still representing nearly half of all foreign locations.Hokkaido Bank shuttered its Shenyang outpost in May 2025 after nearly two decades, relocating operations back to Japan, while Bank of Kyoto closed its Dalian office last year and merged functions into its Shanghai branch, the news agency said.Citing mounting maintenance burdens and declining customer demand, the Bank of Kyoto noted that downsizing became the logical response to falling client needs, the publication 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.)

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International64d ago

Banking Sector Growth Fastest Among 18 Broader Asian Sectors in May, S&P Data Shows

Banking sector growth was the fastest among the 18 broader Asian sectors in May, with activity expanding at the strongest pace in seven months, S&P Global said in a Wednesday release.Output growth was recorded across 16 of the 18 monitored Asian sectors last month, which was unchanged from April. Only the forestry and paper products, and construction materials sectors incurred declines from April, along with lower new orders received, S&P said.New orders rose across the remaining 16 sectors last month, led by the transportation sector.Employment increased in 10 of 18 sectors, with software & services and technology equipment experiencing the strongest hiring, while insurance witnessed a cutdown in employed staff.

Market Chatter: Japan Plans Advanced AUV by 2028 to Accelerate Deep-Sea Rare-Earth Exploration

Japan's marine research agency, JAMSTEC, aims to develop a more efficient autonomous underwater vehicle by fiscal 2028 to search for seabed resources such as rare-earth elements, Nikkei Asia reported on Wednesday.The agency, which operates the Chikyu drilling vessel, conducted trial mining this year near Minamitorishima, where large rare-earth deposits are believed to lie in seafloor mud, the news daily said.The new AUV will combine cruising and hovering capabilities to improve survey efficiency and reduce exploration time, with domestic technologies prioritized given the economic security implications of such work, the publication said.The development is part of the Cabinet Office's K Program, with trial outings planned for fiscal 2028, involving the National Maritime Research Institute and Idea Consultants, 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.)

International64d ago

Japan's Private Sector Activity Slows in May, Final PMI Shows

Japanese private sector activity slowed in May, with a stagnation in the services sector, S&P Global showed Wednesday.The seasonally adjusted S&P Global Japan Composite PMI Output Index slipped to 51.1, compared with 52.2 from the previous month, and was in line with the flash estimate issued on May 21.The latest print also met the consensus estimate, according to Investing.com.Meanwhile, the services PMI slipped to a neutral reading of 50.0 in May, compared with 51.0 in April. It was in line with the consensus forecast of 50.0.On the manufacturing side, the PMI stood at 54.5, lower than the previous month's 51-month high of 55.1, and the consensus estimate of 54.5.

Market Chatter: Japan Approves 3.1 Trillion Yen Extra Budget to Curb Inflation Amid Iran Crisis

Japan's cabinet approved a 3.1 trillion yen supplementary budget to protect households from Middle East-driven inflation, including a 2.5 trillion yen reserve fund to cap gasoline costs, Bloomberg News reported Wednesday.To finance the package, the government will rely on new debt while keeping total bond issuance unchanged by canceling some previously authorized borrowing from the last fiscal year, the news wire said.The extra budget, set to be submitted to parliament on Wednesday with passage expected by Friday, comes just weeks after the annual budget was approved, potentially heightening investor worries about Japan's spending trajectory, the publication said.These fiscal anxieties have rattled the bond market, where benchmark 10-year yields recently touched a three-decade high and super-long yields hit record levels amid inflation and monetary policy concerns, the report said.The package also highlights the deepening economic toll of prolonged Middle East turmoil on resource-poor Japan, which depends heavily on the region for crude oil imports used in fuel, plastics, and other petroleum-based goods, 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.)

Market Chatter: Japan May Cut Food Consumption Tax to 1% to Accelerate Relief

Japanese Prime Minister Sanae Takaichi will decide this month on cutting the food consumption tax to 1% from 8% by April 2027, a faster alternative to full elimination, Nikkei Asia reported Wednesday, citing a draft ministry document.On Wednesday, the Ministry of Economy, Trade and Industry will present findings to a government panel regarding how much lead time retailers need to implement the change, with the panel set to issue a report on the reduction shortly thereafter, the news agency said.Based on surveys of retail groups and regional supermarkets, most businesses can adjust to a 1% tax within six months, the publication said, citing the draft.In contrast, reducing the rate to zero, as the ruling Liberal Democratic Party promised during February's lower house election, would require cash register upgrades taking "up to around 10 months to one year," along with additional system studies, 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.)

Japanese Shares Rise as AI Optimism Fuels US Markets Rally

Japanese equities advanced, fueled by renewed enthusiasm for artificial intelligence that propelled the S&P 500 to its ninth consecutive session of gains.The Nikkei 225 gained 504.3 points or 0.8% to open at 67,238.53Meanwhile, US President Donald Trump expressed confidence in reaching an interim peace deal with Iran soon, according to various reports.Domestically, investors are awaiting a planned speech from Bank of Japan Governor Kazuo Ueda for clues regarding the future path of interest rates.

Hang SengNikkei 225Shanghai Composite

International65d ago

Tech Bulls Shrug Off Geopolitics on Asian Stock Markets

Asian stock markets largely gained on Tuesday as traders shrugged off geopolitics and rallied around AI and tech shares.Hong Kong and Shanghai finished in the green, although Tokyo lagged. Other regional exchanges were mixed on the upside, with fresh all-time zeniths set on equity indices in Seoul and Taiwan.In Japan, the Nikkei 225 opened lower and could not recover, finishing off 0.3% as traders booked profits from recent record-shattering rallies.The benchmark Nikkei 225 fell 200.09 to 66,734.24, as losing issues outnumbered gainers 144 to 77.Leading the upside was glassmaker AGC, up 9.1%, while Nippon Electric Glass declined 10%.In Hong Kong, the Hang Seng Index opened evenly and rose to the close, concluding up 2.5% on AI-sector optimism.The broad gauge Hang Seng rose 640.14 to 26,038.32, as gaining issues outnumbered losers 60 to 30. The Hang Seng TECH Index gained 4.7% on the day, while the Mainland Properties Index rose 0.7%.Leading the upside was WeChat operator Tencent, gaining 10.5% on reports it is testing an AI agent for its social-media platform. Laopu Gold declined 3%.On the mainland, the Shanghai Composite rose 0.4% to 4,075.10.On the other regional exchanges, the S. Korean KOSPI rose 0.2%; the Taiwan TWSE inclined 0.5%; the Australian ASX 200 declined 0.1%; the Singapore Straits Times Index rose 1.2%, and the Thai Set inclined 1.3%. In late trading in Mumbai, the Sensex was up 0.5%.The MSCI All Country Asia Pacific Index rose 0.6% on the day.

Market Chatter: Osaka Condo Rents Outpace New York with Fastest Growth Among Major Global Cities

Osaka's condominium rents climbed by just over 3% in the half year to April, growing at the fastest rate among major cities in the world and outpacing New York, Nikkei Asia reported on Tuesday, citing a Japan Real Estate Institute (JREI) poll.Rent for condominiums in Japan's third-largest city grew at 3.1% over the six-month period, according to the survey, said the news agency.The next largest increases in the rent index were seen in Mumbai and Sydney, both at 2.8%, while rents rose by 2.4% in New York, 1.4% in Tokyo and 1.2% in London, the publication said.The poll compiles rents and purchase prices for condominiums and offices in April and October each year, covering 16 major cities across Asia, Europe and the US, with rents calculated based on the cost of a new lease in three sample locations per city, 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: Japan's 10-year Bond Yield Drops After Strong Auction Demand

Japan's 10-year government bond yield dropped 11 basis points to 2.57% after an auction drew firm demand, with a bid-to-cover ratio of 3.53 exceeding the 12-month average of 3.35, Bloomberg News reported on Tuesday, citing senior strategists.The result provided a soothing sign to watchers of the Japanese government bond market, which had seen yields reach multi-year highs recently on concerns over inflation and fiscal policy stoked by the US-Iran war, the news wire.Investors are betting that the Bank of Japan may need to raise rates soon to combat inflation and curb the yen's weakness, as the currency edges closer to 160 against the dollar, the publication said.While yields have eased, oil prices remain elevated as the US struggles to revive peace efforts, and BOJ Governor Ueda has flagged vigilance over oil price spikes on inflation, 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.)

Japan65d ago

Japanese Shares Close Lower as Heightened Middle East Conflict Spooks Asian Markets

Japanese shares shed their previous session's gains to close in the red following a weak trading session on Tuesday.The Nikkei 225 closed down 200.09 points or 0.3% at 66,734.24.The decline tracked losses among Asian peers amid escalating tensions in Iran.According to media reports, the US bombed radar and drone sites in Iran after the latter shot down an American drone over the weekend.It is also reported that Iran has suspended communication with the US regarding ending the war, due to Israel's escalating military strikes in Lebanon.On the corporate front, Sumitomo Metal Mining's (TYO:5713) profit attributable to owners of the parent surged 969.3% to 176.29 billion yen in the fiscal year 2025 ended March 31, from 16.48 billion yen a year ago.Ricoh (TYO:7752) and its Asia-Pacific subsidiary have closed the acquisition of Global Vision Multimedia, a specialized AV and multimedia integration firm, following strategic partnership talks that began in January, according to a statement on Ricoh's website on Tuesday.

Nikkei 225TYO:2432TYO:4324TYO:7203TYO:9433

Market Chatter: BlackRock Eyes 15% Stake in Go Ahead of Taxi App's June 16 Listing

BlackRock plans to acquire a 15.2% stake in Japanese taxi app Go for roughly 28 billion yen as part of the company's upcoming initial public offering, Nikkei Asia reported Tuesday.The purchase amounts to 11.81 million shares, the report said.Go detailed its secondary offering in a Monday statement, announcing plans to sell up to 36.9 million shares at an indicative price range of 2,350 to 2,400 yen per share, plus an overallotment option of up to 3.55 million shares managed by Nomura Securities.Major existing shareholders selling down their stakes include DeNA(TYO:2432), NTT DOCOMO, and Toyota (TYO:7203), along with domestic sellers such as Aioi Nissin Dowa Insurance, SMBC Trust Bank, KDDI (TYO:9433), and Dentsu Group (TYO:4324).(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: Japanese Automakers to Standardize Defective Parts Criteria

Toyota Motor (TYO:7203) and other Japanese automakers will adopt a unified industry policy for identifying defective components, aiming to reduce waste and secure stable parts supplies as Middle East tensions disrupt the flow of essential materials, Nikkei Asia reported on Tuesday.The Japan Automobile Manufacturers Association and the Japan Auto Parts Industries Association will develop the common standards, which will be rolled out gradually for parts procurement through the end of the year, the news agency said.Previously, suppliers discarded components due to minor cosmetic flaws such as dark specks or small scratches that did not affect performance. The new standards will allow manufacturers to accept parts that meet national requirements and have no functional or appearance-related issues.The move is expected to correct excessive quality control measures and improve production yields, 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.)

Nikkei 225TYO:7203

Market Chatter: Japan, US to Jointly Invest $1 Billion in AI, Advanced Tech Under Genesis Mission

Japan and the United States will jointly invest $1 billion over five years in artificial intelligence and other advanced fields under the Trump administration's Genesis Mission, Nikkei Asia reported Monday.Launched in 2025, the Genesis Mission aims to build a new AI platform by integrating federal scientific databases and national laboratory supercomputers. The project accelerates scientific research by using AI-driven hypothesis testing and automated processes.Under the agreement, Japan will contribute $500 million to collaborate on priority areas including biotechnology, nuclear fusion, and quantum information science, while senior Japanese officials plan to visit the US in early June for a joint announcement with the Department of Energy, the newswire said.Major tech companies, including Microsoft, Google, and Nvidia, will also participate by supplying advanced AI models and expanding supercomputing capacity, the report 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.)