Nikkei 225

Japan Core Inflation Quickens to 1.8% in March

Rising Crude Prices Lower Asian Stock Markets

Asian stock markets largely tracked lower Thursday as traders weighed rising crude oil prices and awaited clarity on Persian Gulf hostilities.Hong Kong, Shanghai, and Tokyo finished in the red, as did most other regional exchanges.Brent crude prices continued to climb during market hours, striking $103.80 a barrel, up 1.9%.In Japan, the Nikkei 225 opened higher but lost momentum, finishing off 0.7% despite continued strength in tech- and AI-connected shares.The benchmark Nikkei 225 fell 445.63 to 59,140.23, as losing issues outnumbered gainers 173 to 48.Leading the upside was semiconductor maker Socionext, gaining 7.1%, while camera house Nikon declined 10.4%.In economic news, Japan's flash composite purchasing manager index (PMI), a combination of the nation's factory and service sectors, logged at 52.4 in April, down from 53.0 in March, but still striking above the 50-mark that separates growth from contraction, reported S&P Global.In Hong Kong, the Hang Seng Index opened lower and could not recover, closing down 1% as traders monitored reports on the still-closed Strait of Hormuz.The broad gauge Hang Seng fell 248.04 to 25,915.20, as losing issues outnumbered gainers 63 to 25. The Hang Seng TECH Index lost 2% on the day, while the Mainland Properties Index fell 0.6%.Leading the upside was PetroChina, gaining 4.2%, while Innovent Biologics declined 5.9%.On the mainland, the Shanghai Composite fell 0.3% to 4,049.25.On the other regional exchanges, the South Korean KOSPI rose 0.9%; the Taiwan TWSE declined 0.4%; the Australian ASX 200 declined 0.6%; the Singapore Straits Times Index fell 1.2%, and the Thai Set declined 1.2%. In late trading in Mumbai, the Sensex was down 1.2%The MSCI All Country Asia Pacific Index fell 0.6% on the day.In other news, India's flash seasonally adjusted composite purchasing manager index (PMI) for output, a combination of the nation's factory and service sectors, logged at 58.3 in April, up from 57.0 in March, reported S&P Global.

Market Chatter: Japan Draws International Interest in Retired Military Gear After Exports Rule Change

Japan is drawing foreign interest in its retired defense gear after a landmark relaxation of export rules, Nikkei Asia reported Thursday, citing chief cabinet secretary Minoru Kihara, Prime Minister Sanae Takaichi's top spokesperson.On Tuesday, Takaichi's cabinet and the National Security Council approved amendments to the government's "three principles on transfer of defense equipment and technology," permitting lethal weapon exports for the first time since World War II, the news daily said.Kihara, in a Nikkei Asia interview, said that while Japan remains dedicated to its peaceful principles, transferring such equipment will help strengthen regional deterrence and response capabilities.Previously restricted to five non-combat areas-rescue, transport, warning, surveillance, and minesweeping-the revised policy now allows exports of military hardware, including missiles and destroyers, 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.)

Japan Manufacturing Up, Services Slow In April: PMI Report

Providing an early window into Japan's economy since Persian Gulf hostilities, Japan's private sector sustained an expansion in April, led by manufacturing, reported S&P Global on Thursday.Japan's flash composite purchasing manager index (PMI) for output, a combination of the nation's factory and service sectors, logged at 52.4 in April, down from 53.0 in March, but still striking above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.Japan's flash manufacturing PMI rose to 54.9 in April, up from 51.6 in March, while the nation's services PMI registered at 51.2 in April, off from 53.4 in the previous month, added S&P Global."While (Japan's) services companies reported weaker growth of both activity and sales at the start of the second quarter, manufacturers signaled the steepest rise in output in over 12 years amid a solid uptick in new work," said S&P Global.Japan's private enterprises again added to payrolls in April, but had trouble keeping up with orders."In line with the trends seen for output and new work, Japanese companies expanded their head-counts modestly in April. Overall employment has now risen consistently for just over two-and-a-half years," advised S&P Global. "Signs of capacity pressure persisted, however, as levels of outstanding business increased for the fifth straight month."Japan's business managers also reported higher costs of operation in April.Surveyed companies "often highlighted higher prices for staff, raw materials, fuel and energy. The latter were in turn linked to developments in the Middle East and a weak yen exchange rate," said S&P Global.The Middle East outlook also clouded Japan's business manager optimism in April."Business confidence regarding future output weakened for the second successive month in April, with overall optimism the lowest recorded since August 2020 during the COVID-19 pandemic," said S&P Global. "While Japanese firms were generally hopeful that demand conditions will strengthen globally, uncertainty and disruption to markets due to the war in the Middle East dampened forecasts at some firms."The flash Japan PMI report was is compiled by S&P Global from survey sent to 400 manufacturers and 400 service providers from April 9 through April 21.

Japan Stocks Close Lower After Nikkei Briefly Tops 60,000

Japanese equities closed in negative territory on Monday, reversing early gains after the benchmark briefly crossed the 60,000 level, as profit-taking set in following a tech-led rally and easing geopolitical risk tied to the extended Iran-U.S. ceasefire.The Nikkei 225 ended 0.75% lower, or fell 445.63 points, to close at 59,140.23.The decline came as investors reassessed geopolitical risks and tracked softer U.S. futures, despite no further escalation in the Middle East.The Nikkei 225 briefly hit a record 60,013.98, with early gains supported by an extended Iran-U.S. ceasefire. While the ceasefire was prolonged following mediation efforts, tensions persisted as a U.S. naval blockade remained in place and Iran seized two vessels in the Strait of Hormuz.In economic news, Japan's private sector growth slowed to a four-month low in April as a surge in manufacturing-driven by supply concerns-was offset by softer services activity, with the S&P Global Flash Japan PMI Composite Output Index easing to 52.4 from 53.Rising input costs linked to energy and a weak yen pushed prices higher, while business confidence fell to its lowest level since August 2020 amid Middle East uncertainty.On the corporate front, Japan Petroleum Exploration (TYO:1662) rose 9% after outlining plans to boost oil and gas output to 180,000 bpd by 2035 with a 1.16 trillion yen investment, shifting focus toward energy security.Toyota Motor (TYO:7203) fell 2% after a report said it is reviewing a potential data breach involving seconded staff from insurers under Tokio Marine (TYO:8766) and MS&AD Insurance Group (TYO:8725).Note (TYO:5243) dropped 8% after its founder sold 2.8% of outstanding shares in a move aimed at improving stock liquidity.

Market Chatter: Japan Retailers Step Up Cost Cuts as Energy Prices Rise

Japanese retailers are tightening operations to manage rising fuel and electricity costs, even as the government works to secure energy supplies, Nikkei reported Thursday.Itochu (TYO:8001) unit FamilyMart is weighing a reduction in store deliveries to cut transport expenses, while Lawson plans a gradual shift to hybrid and electric vehicles. Both chains are also investing in energy-efficient equipment to limit cost pressures, according to the report.Aeon (TYO:8267) is bringing forward investments in solar panels and efficient air-conditioning, and accelerating a transition to lower-power refrigeration systems across stores, the report said.The moves come as utilities prepare to pass on higher fuel costs to electricity bills from June, alongside seasonal demand for cooling. Government fuel subsidies have offered some relief, but their duration remains uncertain, according to the report.(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: Prudential Life Extends Sales Halt in Japan Amid Probe

Prudential Life Insurance extended its suspension of new policy sales in Japan by 180 days to early November as it works to address misconduct involving employees, Nikkei reported Thursday.The insurer said more than 100 current and former staff received about 3.1 billion yen from customers through improper means. The halt on sales has been in place since early February, according to the report.Japan's Financial Services Agency has started an on-site inspection of the group's local holding company, reviewing governance and compliance, the report said.Prudential Life plans changes, including clearer roles for executives and branch managers and a shift away from commission-based pay for sales staff. Compensation will be linked more closely to factors such as policy retention and compliance, according to the report.Complaints are also being reviewed at affiliate Gibraltar Life Insurance, with groupwide cases reaching roughly 700. The parent company expects the extended suspension in Japan to reduce pre-tax adjusted operating income by as much as $575 million this year, 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's Manufacturing Output Growth Hits 12-Year High; Service Sector Expansion Slows

Japanese manufacturing output rose at its steepest rate since February 2014, although this rebound was tempered by a slower expansion in service sector activity, pulling overall private sector growth to its weakest pace in four months during April.The S&P Global Flash Japan PMI Composite Output Index dipped to 52.4 in April from 53.0 in March, remaining above the 50.0 threshold that separates expansion from contraction.While total activity has now expanded for 13 consecutive months, the latest reading marked the softest rate of growth seen so far in 2026.Some manufacturers raised output due to concerns over future supply shortages linked to the Middle East war, contributing to the sharp manufacturing uptick.In contrast, service sector activity grew at its mildest pace in 11 months, while new export business at the composite level rose at the slowest rate in four months.Employment continued its steady rise for over 2.5 years, though capacity pressures persisted as outstanding business levels increased for the fifth straight month.Average input costs surged at the sharpest rate since January 2023, driven by higher prices for staff, raw materials, fuel, and energy-often tied to Middle East developments and a weak yen.Goods producers experienced notably steeper cost inflation than service providers, pushing average output charges to rise at the quickest pace since composite data began in late 2007.Business confidence regarding future output weakened for the second consecutive month, falling to its lowest level since August 2020 due to uncertainty and market disruption from the Middle East war.

Market Chatter: Japan to Unveil New Indo-Pacific Plan in Vietnam

Japan is preparing to roll out a revised Indo-Pacific strategy that places supply chain resilience and economic security at its core, with Prime Minister Sanae Takaichi set to present the plan during a visit to Vietnam, Nikkei reported Thursday.The trip, which also includes Australia, will focus on strengthening regional cooperation, particularly with Southeast Asian economies. The updated framework reshapes the approach first introduced in 2016 to reflect intensifying rivalry over critical technologies and resources, according to the report.At the center of the plan are efforts to secure key materials such as rare earths, diversify energy sourcing, and reduce exposure to disruptions seen during recent global crises. Japan also aims to expand collaboration in areas such as artificial intelligence, semiconductors and quantum technology through greater public and private investment, the report said.Security ties will be reinforced through expanded use of defense assistance programs that supply equipment to partner countries, alongside development aid to deepen economic links, according to the report.(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 Equities Rise at Open on Wall Street Record Gains, Indefinite Iran Ceasefire

Japanese stocks rose at Thursday's open, following Wall Street's record climb fueled by strong earnings and U.S. President Donald Trump's statement that the Iran ceasefire would continue indefinitely.The Nikkei gained 172.8 points or 0.3% to open higher at 59,758.64, with the S&P 500 jumping 1.1% to a record the night prior, marking its best month since 2020.Investors' risk appetite was further supported by robust U.S. company results, including a jump in Boeing's shares following solid first-quarter delivery figures.Market sentiment was further boosted after Trump extended the Iran truce, stepping back from earlier threats of resuming bombing Iran if no deal was reached by Wednesday's deadline.Attention now shifts to whether diplomatic talks can restart and eventually lead to an agreement between the two sides.

Persian Gulf Outlook Roils Asian Stock Markets

Asian stock markets turned in a choppy Wednesday as traders weighed a unilateral extension of a Persian Gulf ceasefire by US President Donald Trump, but also the ongoing closure of the Strait of Hormuz, through which the Asian Pacific receives much of its crude and LNG.Shanghai and Tokyo finished in the green, while Hong Kong fell back. Other regional exchanges were also uneven.In Japan, the Nikkei 225 opened lower, but rose to the close, finishing up 0.4% and striking a fresh all-time zenith, as tech issues rallied.The benchmark Nikkei 225 rose 236.69 to 59,585.86, though losing issues outnumbered gainers 181 to 41, as the rally was concentrated shares exposed to AI-outlooks.Leading the upside was tech-financier SoftBank, up 8.5%, while beverage house Sapporo declined 5.2%.In economic news, Japan logged an international trade deficit of $10.7 billion in the fiscal year ended March 31, remaining in the red for the fifth straight year, reported the Ministry of Finance.In Hong Kong, the Hang Seng Index opened lower and declined in trading, closing down 1.2% on weakness in tech shares.The broad gauge Hang Seng fell 324.24 to 26,163.24, as losing issues outnumbered gainers 70 to 20. The Hang Seng TECH Index lost 1.9% on the day, while the Mainland Properties Index fell 0.2%.Leading the upside was computer-maker Lenovo, gaining 5.7%, while Contemporary Amperex Technology dropped 5%.On the mainland, the Shanghai Composite rose 0.5% to 4,106.26.On the other regional exchanges, the S. Korean KOSPI rose 0.5%; the Taiwan TWSE inclined 0.7%; the Australian ASX 200 declined 1.2%; the Singapore Straits Times Index fell 0.2%, and the Thai Set declined 0.2%. In late trading in Mumbai, the Sensex was down 1%.The MSCI All Country Asia Pacific Index fell 0.6% on the day.

S&P Sees Growth Among Japan's Real Estate Majors to Continue

Japan's major real estate companies will continue to grow amid a further increase in office rents, especially in major cities, S&P Global Ratings said in a recent release.A robust domestic market and competitive portfolios will support steady growth for the real estate majors over the next few years, S&P said.The majors will have slightly better interest coverage compared to peers abroad, given their diversified debt maturity profiles and solid funding bases, the rating agency said.However, new supply in central Tokyo, a core market, will continue to be relatively narrow within the next few years, S&P said.The majors' ability to further raise rents to balance increasing interest costs will be crucial for their creditworthiness, the rating agency said.

Japan Equities Advance on Stronger Outlook, Export Growth

Japanese equities closed higher on Wednesday, with the Nikkei 225 gaining after J.P. Morgan raised its year-end target for the benchmark to 70,000 from 61,000, citing momentum in AI and a weaker yen.On Wednesday, the Nikkei 225 rose 0.4%, or 236.69 points, to close at 59,585.86.Analysts at J.P. Morgan said concerns about overheating in the Nikkei 225 outweigh improving long-term growth prospects for Japanese equities, even as crude prices stay elevated.The benchmark index climbed to a record on Wednesday, nearing the 60,000 mark, as it recovered from a broad global selloff linked to tensions in the Middle East.In economic news, Japan's trade surplus widened to 667 billion yen in March as exports grew faster than imports, with shipments to China and the U.S. offsetting a sharp slump in Middle East trade amid the Iran conflict, data from the Ministry of Finance Japan showed.The Bank of Japan said the financial system remains stable but flagged rising risks from geopolitical tensions, higher oil costs, and exposures to real estate, foreign funds and leveraged market activity.On the corporate front, Mitsubishi UFJ Financial (TYO:8306) fell over 1% after a report said it is considering offering higher deposit rates for a planned digital bank to compete on speed and cost.Tokyo Electric Power (TYO:9501) rose about 4% after securing 4.7 billion yen in fresh grants to support ongoing nuclear compensation payouts.Advantest Corporation (TYO:6857) gained around 3% after joining Applied Materials' EPIC platform and opening a Silicon Valley research center to advance chip development.

Market Chatter: Japan Policy Shift on Arms Exports to Drive Capacity Push

Japan has relaxed restrictions on defense equipment exports, paving the way for overseas sales and prompting companies, including IHI (TYO:7013) and Mitsubishi Heavy Industries (TYO:7011), to expand capacity, Nikkei reported Tuesday.The changes, cleared by the cabinet of Prime Minister Sanae Takaichi, remove limits that confined shipments to noncombat roles, according to the report.Manufacturers are stepping up investment as global demand rises, particularly for missiles and air defense systems. Japanese companies are also seeking to fill supply gaps faced by the U.S. and other producers amid heightened geopolitical tensions, the report said.The shift signals stronger growth prospects for the sector, though constraints around labor, supply chains and limited combat track records remain, according to the report.(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 Stocks Open Lower as Investors Weigh Iran Risks After Ceasefire Extension

Japanese stocks edged lower at Wednesday's open as investors balanced cautious optimism with renewed anxieties about the Middle East.The Nikkei fell 245.1 points, or 0.4%, to open at 59,104.11.U.S. President Donald Trump extended the Iran ceasefire indefinitely a day before its expiration despite collapsed talks, saying the U.S. would refrain from new strikes but keep its blockade of the strategic Strait of Hormuz, various reports said.At home, Japan's trade surplus widened to nearly 667 billion yen in March from 529.8 billion yen a year earlier, driven by a jump in exports to its two largest trading partners - the U.S. and China.Meanwhile, exports to the Middle East plunged 45.9% and imports from the region fell 10.7%, as the Iran war effectively closed the Strait of Hormuz, a critical route for Japan's oil imports.

Japan's Trade Surplus Expands in March as Exports to China, US Jump

Japan's trade surplus expanded to nearly 667 billion yen in March from 529.8 billion yen a year earlier as exports outpaced imports, data from the Ministry of Finance on Wednesday showed.Exports during the month climbed 11.7% to 11.003 trillion yen from 9.852 trillion yen, after shipments to its two largest trading partners, China and the US, rose 17.7% and 3.4%, respectively.This March export reading is triple that of the export growth of 4% the month prior.Exports to the Middle East plunged 45.9% while imports fell 10.7%, as the Iran war effectively shut the Strait of Hormuz, a vital waterway for Japan's oil imports from the region.Overall imports, meanwhile, grew 10.9% on year to 10.336 trillion yen from 9.322 trillion yen, boosted mostly by imports from Asian nations.

Market Chatter: BOJ Likely to Delay Rate Hike to June Amid Iran War Shocks, Survey Shows

The Bank of Japan is anticipated to maintain its policy rate at 0.75% when its two-day meeting concludes on April 28, Bloomberg News reported Wednesday, citing its recent poll.Approximately 80% of 51 economists polled expect the policy rate to be kept, and the remainder forecast an immediate hike, down from 37% in early March, as the Middle East conflict drives up energy costs for import-dependent Japan, the poll showed.The poll also showed that 57% of surveyed economists now predict the next rate hike will occur in June, and people familiar with the situation have indicated that authorities are inclined to hold the benchmark rate steady on April 28, the news wire said.Governor Kazuo Ueda said last week the April decision is difficult as the BOJ must balance inflation risks, though roughly three-quarters of economists surveyed believe upside risks currently dominate.As the yen hovers near the 160 intervention level, analysts expect hawkish language with any hold, despite the year-end rate forecast rising to 1.25% from 1%.(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, Mexico Agree to Boost Energy and Trade Cooperation Amid Iran War

Japan's Prime Minister Sanae Takaichi and Mexico's President Claudia Sheinbaum pledged to strengthen energy cooperation amid global oil and gas disruptions caused by the Iran war over a phone call on Tuesday, Reuters reported on the same day.Takaichi proposed creating a new dialogue framework with Mexico that encompasses economic security, Mexico's abundant mineral resources, the publication said.The premier also requested Mexico's support in fostering a favorable environment for Japanese businesses operating there, the news wire said.The two leaders also concurred on deepening trade ties, the report said, citing Japan's foreign ministry.President Sheinbaum described the conversation as "very productive" on X, emphasizing the importance of enhancing bilateral relations in investment, trade and cooperation, 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.)

Bank of Japan Flags Middle East Risks to Financial System, Corporate Cash Flow, Non-Bank Lenders

The Bank of Japan assesses that the nation's financial system remains broadly stable, but it must remain vigilant due to heightened geopolitical risks, particularly the ongoing tensions in the Middle East, according to the central bank's latest financial system report released Tuesday.The surge in crude oil prices following the escalation in the Middle East could elevate companies' commodity procurement costs and disrupt supply chains, increasing the risk of corporate defaults, the BOJ said.Such developments necessitate close attention to the possibility that prolonged tensions could adversely impact firms' financial positions and their cash-flow management, according to the report.Regarding lending exposure, Japanese banks have sufficient capital and stable funding bases, but their real estate-related lending has grown faster than overall loans, warranting careful monitoring, the report said.In overseas lending, banks have increased their exposure to foreign investment funds (including private equity and private credit funds) and data centers, which carry unique risk characteristics, the central bank said.While loans to these foreign funds and data centers currently maintain favorable credit ratings, their creditworthiness could change significantly due to shifts in asset valuations or technological innovations, according to the report.The report highlights growing concerns about non-bank financial intermediaries (NBFIs), including hedge funds, whose high-leverage activities in global bond markets could transmit stress to Japan's financial system.Foreign hedge funds have increased their presence in Japan's government bond market using repos and derivatives, and a sudden unwinding of their positions could reduce market liquidity.Additionally, the report flags risks from private credit funds, where recent investor redemptions have occurred, and notes that the relaxation of lending terms (such as payment-in-kind loans) may be delaying the recognition of credit defaults.

Easing Crude Oil Prices Lift Asian Stock Markets

Asian stock markets gained ground on Wednesday, as traders noted easing global crude prices and weighed prospects for US-Iran peace negotiations.Hong Kong, Shanghai, and Tokyo finished in the green, as did most other regional exchanges.Brent crude traded for $94.68 during trading hours, off 0.8% on the day.In Japan, the Nikkei 225 opened higher and held ground, finishing up 0.9% as bank and tech issues advanced on earnings results and outlooks.The benchmark Nikkei 225 rose 524.28 points to 59,349.17, marking the fourth straight trading day in the green, although losing issues outnumbered gainers 144 to 79.Leading the upside was tech goods manufacturer Ibiden, up 10.3%, while software tester Shift declined 6.3%.In Hong Kong, the Hang Seng Index closed up 0.4% on easing oil prices.The broad-gauge Hang Seng rose 126.41 points to 26,487.48 as gainers outnumbered losers 59 to 30. The Hang Seng TECH Index lost 0.1% on the day, while the Mainland Properties Index rose 1.3%.Leading the upside was Contemporary Amperex Technology, gaining 4.8%, while smartphone components maker Sunny Optical Technology declined 2.4%.On the mainland, the Shanghai Composite rose 0.1% to 4,085.08.On the other regional exchanges, the South Korean KOSPI rose 2.7%; the Taiwan TWSE gained 1.8%; the Australian ASX 200 was steady; the Singapore Straits Times Index rose 0.2%, and the Thai Set advanced 0.1%. In late trading in Mumbai, the Sensex was up 1%The MSCI All Country Asia Pacific Index rose 0.7% on the day.