Nikkei 225

Japanese Stocks Rise as US-Iran Talks Fuel Optimism; Core Inflation Slows

Japanese equities extended gains at the start of Friday's session, mirroring a modest uptick in U.S. equity-index futures as ongoing negotiations between the U.S. and Iran boosted market sentiment.The Nikkei 225 gained 229.2 points or 0.4% to open higher at 61,913.36.At home, Japan's core inflation slowed more than expected in April, rising 1.4% year-on-year, as government measures to lower living costs offset pressures from a weak yen and high energy prices.On the geopolitical front, Iran said Washington's latest proposal partly bridged gaps, but the Supreme Leader's remarks on uranium stockpiles and a dispute over Hormuz tolls dimmed hopes for a swift breakthrough.Tehran is discussing a permanent toll system with Oman to formalize control over Hormuz shipping, while President Donald Trump insists the strait must remain open and toll-free, and Iranian President Pezeshkian vowed not to back down in talks.

Japan's Core Inflation Cools to 1.4% in April

Japan's core consumer prices eased in April, registering a year-on-year increase of 1.4%, compared with 1.8% in March, according to government data on Friday.The print, which excludes perishable items, is still well below the Bank of Japan's inflation target of 2% and market consensus of 1.8%.Excluding fresh food and energy, the reading was at 1.9% in April, down from 2.4% the month prior.Including all items, headline CPI rose 1.4% in April, a tad lower than the 1.5% increase in March.The slower pace of increase over the past year is attributed to moderating effects on energy costs as the government intervenes to ease the cost of living.Although the increase in fresh food prices accelerated to 0.3% from a contraction of 4.8% month prior.

Japan's Core Inflation Eases to 1.4% in April; Headline Inflation Also Slows to 1.4%

Oil, Tech Outlooks Roil Asian Stock Markets

Asian stock markets turned in a mixed Thursday with powerful rallies in Tokyo and Seoul on tech strength and lower oil prices, while Hong Kong and Shanghai lagged on mainland China's uncertain macroeconomic outlook.The tech-centric South Korean KOSPI index rose 8.4% on the day, after semiconductor powerhouse Samsung Electronics sealed a labor deal, and following an upbeat earnings report from peer enterprise and chip colossus Nvidia (NVDA).Brent oil futures, after topping $110 a barrel on Wednesday, eased to near $104 on Thursday.In Japan, the Nikkei 225 opened higher and rose to the close, finishing up 3.1%, after US President Donald Trump on Wednesday again posited that a peace deal was possible in the Persian Gulf.The benchmark Nikkei 225 rose 1,879.73 to 61,684.14, as gaining issues outnumbered losers 139 to 85.Leading the upside was tech financier SoftBank, up 19.9% after reports that client OpenAI may file an initial public offering. The insurer Sompo declined 10.7% after reporting earnings.In economic news, the flash Japan composite purchasing managers index (PMI), a combination of the nation's manufacturing and services sectors, fell to 51.1 in May from 52.2 in April, marking the slowest pace of expansion this year, though still striking above the 50 threshold that separates growth from contraction.In Hong Kong, the Hang Seng Index opened evenly but lost ground, closing down 1% as traders mulled recent tempered economic releases from Beijing.The broad gauge Hang Seng fell 264.60 to 25,386.52, as losing issues outnumbered gainers 59 to 30. The Hang Seng TECH Index lost 2.1% on the day, while the Mainland Properties Index fell 1.1%.Leading the upside was smartphone components supplier Sunny Optical Technology, gaining 9.3%, while search engine giant Baidu declined 5.7%.On the mainland, the Shanghai Composite fell 2% to 4,077.28.On the other regional exchanges, the Taiwan TWSE rose 3.4%; the Australian ASX 200 advanced 1.5%; the Singapore Straits Times Index was flat, and the Thai Set gained 0.3%. In late trading in Mumbai, the Sensex was down 0.2%MSCI All Country Asia Pacific Index rose 2.2% on the day.

Japanese Shares Close Higher on Hopes of Iran War Resolution

Japanese shares extended their gains on Thursday to close higher, tracking global optimism fueled by the hopes that the Middle East crisis may be resolved soon.The Nikkei 225 closed up 1,879.73 points or 3.1% to close at 61,684.14.Globally, investors were enthused when President Donald Trump announced that the U.S. and Iran are in the "final stages" of negotiating a peace deal to end the conflict.Iran, in response, said it had received the American points of view and was currently examining them. Iranian President Masoud Pezeshkian said on X that his country has "explored every avenue to avert war," adding that "all paths remain open from our side".On the domestic front, Japan reported an unadjusted trade surplus of 301.91 billion yen for April as the value of exports climbed 14.8% year-on-year, while the import value increased by 9.7%, as energy imports plunged in the month.Meanwhile, the country's core machinery orders received by the private sector fell seasonally adjusted 9.4% in March from the previous month.On the corporate side, shares of Orix (TYO:8591) closed up over 3% in Thursday's trade, after the company said it expects a 70 billion yen increase in attributable net income for the fiscal first quarter ended June 30, after incorporating investment gains and losses tied to Toshiba.Also, SOMPO Holdings' (TYO:8630) shares plunged nearly 11%, even as net income attributable to owners of the parent soared 163% to 640.1 billion yen in the fiscal year 2025 from 243.1 billion yen a year earlier.

Japan Core Machinery Orders Down 9.4% in March

Japan's core machinery orders received by the private sector fell seasonally adjusted 9.4% in March from the previous month, the Cabinet Office reported Thursday.Including volatile orders of ships and electric power companies, total orders by the private sector dropped 5.3%.The total country's machinery orders by 280 manufacturers increased on a seasonally adjusted 4.3% in March.Meanwhile, orders from manufacturing companies plummeted more than 14% in March, while non-manufacturing orders declined 6%, the report said.

Japan Private Sector Growth Hits Five-Month Low in May as Services Stagnate

Japan's private sector business activity expanded in May, though at the slowest rate observed in the past five months, according to the latest S&P Global Flash PMI data.The overall growth was driven exclusively by the manufacturing segment, as services activity showed no growth for the first time in over a year.Stockpiling due to the ongoing Middle East conflict-which continues to disrupt supply chains and drive up prices-partly explained the sustained rise in manufacturing output.At the composite level, average input costs climbed more sharply than at any point since October 2022, prompting businesses to raise their selling prices by the largest margin on record.Business confidence regarding output over the coming year stayed low, largely because of persistent geopolitical uncertainties.The seasonally adjusted S&P Global Flash Japan PMI Composite Output Index dropped from 52.2 in April to 51.1 in May, marking the 14th consecutive month of expansion but the weakest increase so far in 2026.Meanwhile, the flash Japan Services PMI Business Activity Index slipped to 50.0 from 51.0 in April.Total new business also rose at the slowest pace in five months, with modest gains in new orders across both manufacturing and services, while export business grew only slightly as stronger foreign demand for goods offset a sharp drop in overseas services sales.Intense cost pressures persisted in May, with input costs rising at the fastest pace since late 2022 due to Middle East-driven supply disruptions and raw material shortages, hitting manufacturers harder than service providers.In response, Japanese companies raised their selling prices again, resulting in the steepest rate of charge inflation in nearly 19 years of data collection, though the increase remained slower than that of input costs.The flash Manufacturing PMI for Japan dipped to 54.5 in May from April's 55.1, while the Output Index within that sector also fell to 54.1 compared to the previous month's reading of 55.1.Job growth slowed to a seven-month low and stayed modest, while backlogs rose slightly faster-particularly in manufacturing due to higher sales and supplier shortages.Optimism edged up to a three-month high, though concerns over the Middle East conflict and its inflationary impact remained historically subdued.

Japan's Trade Surplus Steady in April as Energy Imports Plummet

Japan maintains a trade surplus as energy imports plunged in April, according to the Finance Ministry's Thursday provisional report.The nation posted an unadjusted trade surplus of 301.91 billion yen for April as the value of exports climbed 14.8% year-on-year, while the import value increased by 9.7%.Imports of petroleum declined nearly 50% in April, contributing to a 19.3% decline in overall mineral fuel imports, as Japan, heavily reliant on Middle Eastern oil, reduced its energy purchases following the effective shutdown of the Strait of Hormuz.Meanwhile, exports to Japan's two largest trading partners, China and the U.S., grew 15.5% and 9.5%, respectively. Imports from the two countries also posted double-digit growth.

Japanese Stocks Climb as Middle East Fears Ease

Japanese shares rose at Thursday's market open as optimism surrounding U.S.-Iran negotiations reduced fears over Middle East instability.The Nikkei 225 gained 570.4 points or 1% to open at 60,374.84.Iran is currently reviewing a new draft from the U.S., with President Masoud Pezeshkian saying on X that his country has "explored every avenue to avert war," adding that "all paths remain open from our side."The world's most valuable stock, Nvidia, unveiled a forecast of $91 billion in sales for the quarter ending in July, better than analysts had anticipated.At home, Japan maintains a trade surplus as energy imports plummet in April.According to the Finance Ministry's Thursday report, Japan posted an unadjusted trade surplus of 301.9 billion yen for April as the value of exports climbed 14.8% year-on-year while import value increased by 9.7%.

Market Chatter: Japan Sees Sufficient Summer Power Supply; Expects No Conservation Requests

Japan is expected to have sufficient electricity to handle peak summer demand, Bloomberg News reported Thursday, citing the government's latest assessment of the power supply situation.Documents from a trade ministry meeting scheduled for Wednesday indicate that no power conservation requests will be issued to households or businesses, as all regions are projected to have ample supply, the news wire said.Japan measures spare electricity capacity using the power reserve ratio, with a 3% buffer considered the minimum requirement, and the Tokyo area is forecast to see its lowest ratio of 3.5% during the first half of August, the publication said.Authorities plan to keep a close watch on conditions and introduce additional measures on the supply side if necessary, 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.)

Oil, Interest Rates, Geopolitics Undercut Asian Stock Markets

Asian stock markets largely declined Wednesday as tech issues again waffled, and traders weighed prospects for peace in the Persian Gulf.Hong Kong, Shanghai, and Tokyo finished in the red, as did most other regional exchanges.In Japan, the Nikkei 225 opened lower and declined thereafter, closing down 1.2%, marking the fifth-straight trading day in the red.The benchmark Nikkei 225 fell 746.18 to 59,804.41, as losing issues outnumbered gainers 181 to 42.Leading the upside was industrial conglomerate UBE, up 20.9% after disclosing plans to boost dividends, while machine tool manufacturer Okuma declined 10%.In Hong Kong, the Hang Seng Index opened lower and could not recover, closing down 0.6% on the uncertain Middle East outlook, and as interest rates edged up.The broad gauge Hang Seng fell 146.73 to 25,651.12, as losing issues outnumbered gainers 60 to 30. The Hang Seng TECH Index gained 0.3 % on the day, while the Mainland Properties Index fell 1.3%.Leading the upside was Semiconductor Manufacturing International, gaining 9.7%, while Laopu Gold declined 6.9%.On the mainland, the Shanghai Composite fell 0.2% to 4,162.18.On the other regional exchanges, the South Korean KOSPI fell 0.9%; the Taiwan TWSE declined 0.4%; the Australian ASX 200 declined 1.3%; the Singapore Straits Times Index fell 0.5%, and the Thai Set advanced 0.8%. In late trading in Mumbai, the Sensex was up 0.1%The MSCI All Country Asia Pacific Index fell 0.7% on the day.In other news, Bank Indonesia raised its benchmark interest rate by 0.50% to 5.25%, citing a need to strengthen the rupiah, the nation's currency.

Japanese Shares Extend Losses to Close Lower on Wednesday On Weak Global Sentiment

Japanese equities closed in the red after a weak trading session on Wednesday, tracking the negative sentiment in the global markets over concerns about rising inflation, extended a selloff in U.S. government bonds, and pushed yields to multi-year highs.The Nikkei 225 closed down 795.20 points or 1.3%, at 59,755.39.According to media reports, on Tuesday, yields on the 30-year Treasuries hit levels last seen in 2007, as investors are spooked that energy costs may lead to the US Federal Reserve hiking interest rates.To boost the domestic economy, the Japanese government is poised to issue guidelines encouraging startups to see acquisitions as a viable alternative to IPOs, according to a Nikkei Asia report on Wednesday.Also, sentiment among Japanese factory managers improved slightly in May, driven by a recovery in commodity-linked industries from a contraction the previous month caused by the Iran war.However, weakness in the automotive sector and several other industries prevented a stronger rebound, according to the Reuters Tankan poll.On the corporate side, Daiwa Securities Group (TYO:8601) closed down over 1%, after the news that it is acquiring a 10% voting interest in Ireland-based aircraft lessor Airborne Capital by buying common shares from existing shareholders, subscribing for subordinated notes, and obtaining warrants that could allow it to increase its interest to 20%.Also, TDK (TYO:6762)'s shares closed lower by 1%, after its subsidiary Amperex Technology (Singapore) agreed to acquire a 100% stake in Malaysia's Linergy Power for $241.1 million.

Market Chatter: Japan to Urge Startups to Consider M&As as Alternative For IPOs

The Japanese government will soon issue guidelines encouraging startups to see acquisitions as a viable alternative to IPOs, Nikkei Asia reported Wednesday.The Ministry of Economy, Trade and Industry developed these guidelines based on expert discussions that began in 2025, and while they are not legally binding, they are expected to become industry standard practice, the news daily said.The guidelines recommend that startups develop strategies open to both early-stage acquisitions and IPOs, including paying attention to veto power granted during equity fundraising, the publication said.The guidelines caution against granting certain shareholders veto rights, warning that concentrated veto power could stall or derail acquisition negotiations, 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 Factory Sentiment Improves Modestly in May but Auto Sector Weakness Caps Rebound, Reuters Tankan Shows

Sentiment among Japanese factory managers improved slightly in May, driven by a recovery in commodity-linked industries from a contraction the previous month caused by the Iran war.However, weakness in the automotive sector and several other industries prevented a stronger rebound, according to the Reuters Tankan poll.The monthly survey, which serves as a leading indicator for the Bank of Japan's quarterly Tankan, showed manufacturers' sentiment edging up to plus 8 in May from April's plus 7, though this remained well below March's four-year high of plus 18.Materials industries showed improvement, with their index rising to plus 5 from minus 3, while chemicals recovered to plus 6 from minus 8 and steel and nonferrous metals climbed to a zero reading from minus 25.A chemicals company manager attributed the optimistic outlook to "front-loaded demand due to the Middle East situation," and a ceramics firm respondent noted a similar pattern.The transport machinery sector, encompassing Japan's automakers and their extensive supplier network, saw its confidence halve to plus 10 from plus 20, extending a sharp decline from plus 36 in March.Food processors remained the weakest manufacturing segment, with their index falling to a six-year low of minus 40 from minus 25, while the textiles, paper and pulp index dropped to minus 22 from zero.Non-manufacturing sentiment slipped to plus 29 in May from plus 31 in April, weighed down by a 10-point decline in real estate and construction and a 6-point drop in general services, though retailers grew more optimistic while wholesalers soured.Looking ahead, manufacturers expect sentiment to weaken further to plus 5 by August, reflecting growing uncertainty over the Iran war's trajectory and supply chain fallout, while non-manufacturers also forecast a decline to plus 18.The poll, conducted from May 1 to 15, surveyed 492 major non-financial firms with 220 anonymous responses, with indexes calculated by subtracting the percentage of pessimistic respondents from optimistic ones, where positive figures indicate net optimism.

Japanese Stocks Open Lower Amid Renewed Inflation Fears, Geopolitical Tensions

Japanese equities showed little movement at the start of trading on Wednesday, as escalating concerns over inflation extended a selloff in U.S. government bonds and pushed yields to multi-year highs.The Nikkei 225 opened marginally lower with a negative bias at 60,567.27.On the geopolitical front, US President Donald Trump threatened to resume strikes on Iran within days as part of efforts to secure a deal to end the war, while NATO is discussing potential assistance for ships transiting the Strait of Hormuz if the strategic waterway remains closed beyond early July.Finance Minister Satsuki Katayama told reporters in Paris on Tuesday that her G-7 counterparts understand Japan's position, pledging to take bold action as necessary to support the yen.Separately, Bank of Japan Governor Kazuo Ueda reiterated at the same press conference that he will continue conducting monetary policy aimed at achieving stable inflation while closely monitoring upside risks.

Market Chatter: Development Bank of Japan Targets to Provide 3 Trillion Yen in Risk Capital

The state-backed Development Bank of Japan aims to provide 3 trillion yen in risk capital over five years to fund supply chain shifts and industry consolidation, Nikkei reported Wednesday, citing President Seiji Jige.The medium-term plan through fiscal 2030, released Tuesday, includes equity, real estate, infrastructure, and mezzanine financing-a debt-equity hybrid, the news portal said.Compared to the previous plan spanning fiscal 2023 to 2025, this represents an increase of just over 10% in average annual investment, the publication said.Seiji Jige told Nikkei that while the bank's investments have traditionally targeted exits in roughly five years, it may now need to hold them for a decade or more at companies' request.(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 Vows Bold Intervention to Support Yen As Needed

Finance Minister Satsuki Katayama told reporters in Paris that her G-7 counterparts understand Japan's stance and that she will take bold action as needed to support the yen, Bloomberg News reported Wednesday.Her remarks followed the first G-7 meeting since Japan's suspected yen-buying interventions began late last month, with the communique reaffirming that excess currency volatility can harm economies, the news wire said.Following Katayama's remarks, the yen strengthened to around 158.82 against the dollar, recovering from its weakest level since the government last intervened on April 30, the publication said.Separately, Bank of Japan Governor Kazuo Ueda reiterated at the same press conference that he will continue conducting monetary policy to secure stable inflation while watching for upside risks, 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.)