
Asian private equity firm MBK wins first-negotiation rights for Makino
TOKYO -- Asian private equity firm MBK Partners has been granted the right of first refusal in negotiations to purchase Japan's Makino Milling Machine, Nikkei has learned.
Multiple funds have shown interest in the Tokyo-listed machine tool manufacturer. Earlier this month, Japan's Nidec withdrew an unsolicited takeover bid after Makino threatened to mount a "poison pill" takeover defense.

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Japan Times
2 hours ago
- Japan Times
Japan confirms GDP contraction, backing BOJ's cautious stance
Japan's economy contracted in the first quarter, a revised estimate confirmed Monday, weakness that supports the Bank of Japan's cautious stance and keeps political pressure on Prime Minister Shigeru Ishiba ahead of a key election. Gross domestic product (GDP) shrank at an annualized pace of 0.2% in the three months through March, according to the Cabinet Office, a less severe drop than the initial estimate of a 0.7% decline. Economists had expected that initial figure to stand. The improvement was driven by better-than-expected inventory and consumption figures. Inventories contributed 0.6 percentage points to growth, double the preliminary estimate, while personal consumption managed to eke out growth of 0.1%, versus a prior flat reading. The inventory gain is an indication of greater output, but also points to unsold goods and components, a potential sign of weak demand. Business spending gained 1.1%, a little weaker than first forecasts, while net exports, the main factor pushing the figures into the red, posted a drag of 0.8 percentage points. The revised data confirms Japan's economy shrank even before U.S. President Donald Trump amped up tariff pressure in April, deepening uncertainty for policymakers. The BOJ, which slashed its growth forecast for this year at its last policy meeting, is widely expected to maintain its wait-and-see stance when it next meets on June 17. "Looking at the GDP results alone, it's hard for the BOJ to justify a rate hike,' said Kazutaka Maeda, economist at Meiji Yasuda Research Institute. "The bank doesn't need a rate cut, but it needs to wait and see how things unfold. Overall, today's data is more of a factor that pushes back the rate hike timing.' BOJ officials remain on alert over the tariff impact, with Gov. Kazuo Ueda calling uncertainties "extremely high.' He warned last week that tariffs could affect Japan's economy through multiple channels, pledging to evaluate economic and price developments through a broad array of indicators. Most economists expect the central bank to delay further rate hikes, with a majority anticipating no change in coming months. Japan is contending with a barrage of U.S. tariffs, including a blanket 10% duty on its goods that will rise to 24% in early July barring a trade deal. Sector-specific levies are proving especially burdensome, most notably the 25% duties on automobiles and auto parts, which are eroding exporters' profit margins. Japan's exports fell in the first 20 days of May as the Trump administration's sweeping tariffs continued to disrupt trade. Meanwhile, domestic demand remains fragile, offering limited support for the economy. Private consumption growth in the first quarter remained weak, as sustained inflation continued to weigh on household confidence. The nation's key inflation gauge has been at or above 3% since December, driven by surging food and energy prices. With consumption accounting for about 60% of the country's GDP, its weakness is a serious concern for policymakers seeking to achieve a virtuous economic growth cycle. With the economy lacking clear growth drivers, many economists expect a tepid performance in the second quarter, raising the risk of the economy entering a technical recession. The fragile domestic economy and precarious trade diplomacy pose a major challenge for Ishiba, who faces a key Upper House election next month. Ishiba's approval rating remains under pressure in local polls, hitting the lowest level of his premiership last month before recovering slightly this month. To alleviate public frustration over rising prices, Ishiba recently introduced relief measures for households that included the resumption of utility subsidies and the release of government rice stockpiles into the retail market. "Behind weak consumer spending is people's sense that prices are too high,' said Meiji Yasuda's Maeda. "Compared to opposition parties the government's policies are lacking impact, so there's a risk that people get the impression they're not doing anything.' At the same time, Ishiba's government is engaged in negotiations with Washington as several critical deadlines approach in July, including Japan's vote and the expiration of a 90-day grace period that temporarily reduced Trump's so-called reciprocal tariffs. Japan, which was quick to initiate talks, now appears to be lagging behind other nations, as the U.S. has already reached an agreement with the United Kingdom and a temporary truce with China. Japan's lead trade negotiator Ryosei Akazawa said that progress is being made but Japan and the U.S. haven't been able to come to an agreement, following his fifth round of talks with U.S. counterparts. Trump and Ishiba are expected to hold talks on the sidelines of the Group of Seven summit gathering later this month.


Japan Times
2 hours ago
- Japan Times
Online brokerage account hijackings continue in Japan
Online brokerage accounts in Japan continue to be hijacked in significant numbers, according to the Financial Services Agency. In May, 2,289 unauthorized transactions were logged, and ¥200 billion of fraudulent trades were made, the FSA said in a report released last week. That's down from April's 2,910 illicit transactions and about ¥290 billion in fraudulent trading but still high by historical standards. Alleged fraudsters are still taking advantage of possible security loopholes to hijack user accounts and invest the assets to their advantage. Since March, the number of online brokerage hacking cases has skyrocketed in Japan. The total number of illicit transactions between March and May reached 5,886, while the value of unauthorized trading was more than ¥500 billion. Only 72 unauthorized transactions were reported for January and February. The Japan Securities Dealers Association has confirmed hijacking cases at 16 brokerages, including some of the largest, and warned that alleged cyber crooks are now targeting accounts at smaller securities companies as well. They use phishing techniques, malware and other illicit means to gain access to user accounts. Securities are then sold, and the proceeds are used to buy shares held by the hackers to prop up the prices of these shares. Cybersecurity experts have pointed out that hijacking incidences have increased significantly in recent months as hackers have found that many brokerages have security holes, such as a lack of multifactor authentication. Multifactor authentication adds an extra layer of security by requiring a second step, such as a fingerprint or a passcode sent by text or generated by an app or a separate device. A number of brokerages offer multifactor authentication, but whether to use it or not is up to the customer in many cases. To strengthen security, 76 brokerages have said they will make multifactor authentication mandatory for trading procedures, but it will take time for some brokerages to implement the extra security step. The FSA warns that users should not reuse the same password for different accounts. To protect from malware, it is also important to update operating systems, while installing an anti-malware service can be effective.


Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Japan's Nikkei Stock Average Jumps as Chip Stocks Rally Ahead of Sino-US Talks
Yomiuri Shimbun file photo The Tokyo Stock Exchange TOKYO, June 9 (Reuters) – Japan's Nikkei share average advanced 1% on Monday ahead of trade talks between the U.S. and China in London later in the day, with investors watching for any easing of restrictions over semiconductor shipments. Both countries are under pressure to relieve tensions, with China dominating global exports of rare earth minerals needed for chips and other advanced technologies, while the U.S. has curtailed exports of chip-design software to China. A phone call between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Thursday led to the Monday talks, with Trump later saying rare earth supply would no longer be a problem for the United States. The Nikkei .N225 rose 1.05% to 38,137.09 as of the midday trading recess. The broader Topix .TOPX rose 0.63%. A sub-index of growth shares .TOPXG rallied 0.8%, outpacing a 0.47% rise in value shares .TOPXV. Chip-testing equipment maker and Nvidia supplier Advantest 6857.T was Nikkei's biggest gainer in index-point terms with a 5.17% climb. 'The trade talks in London are at the very least a step in the direction of easing restrictions on chip shipments between the U.S. and China,' buoying the sector on Monday, said Yunosuke Ikeda, chief macro strategist at Nomura. Artificial intelligence-focused startup investor SoftBank Group 9984.T jumped 4.03%. Chip-sector stocks Disco 6146.T and Lasertec 6920.T rose about 3% each. Otsuka Holdings 4578.T, the Nikkei's biggest percentage gainer, soared 8.65% after the drugmaker said its experimental therapy for a potentially life-threatening kidney disease more than halved severe levels of protein in the urine of patients. On the other end, iSpace 9348.T was poised to fall by the daily limit for the second straight session after its second failed attempt to put a lunar lander on the moon last week. The stock was set to slide 20%, with offers to sell outnumbering bids by 9-to-1.