World shares are mixed after a Japanese government bond auction falls flat
The screens show the foreign exchange rates are seen at a dealing room of Hana Bank in Seoul on May 28. (AP Photo)
World shares are mixed after a closely watched auction of 40-year Japanese government bonds fell flat as worries mount over growing levels of debt.
In early European trading, Germany's DAX gained 0.2% to 24,283.71, while the CAC 40 in Paris was up 0.3% at 7,847.20. Britain's FTSE 100 rose 0.2% to 8,794.80.
The future for the S&P 500 slipped 0.1% while that for the Dow Jones Industrial Average was down 0.2%.
In Asian trading, Japan's Nikkei 225 index was nearly unchanged at 37,722.40.
Government debt and bonds have become an increasingly important issue for markets in wealthy countries in recent weeks as yields have climbed around the world.
Wednesday's auction of about 500 billion yen (about $3.5 billion) drew a bid-to-cover ratio of just 2.21, the lowest level since July 2024. The ratio of the amount of bonds offered versus the amount of bids received is seen as a measure of demand. When demand is slack, bond prices fall and yields rise.
After years of pumping money into the economy through hefty bond purchases, Japan's central bank has been gradually cutting back, undermining demand at a time when other institutional investors also have been buying fewer JGBs.
A recent auction of 20-year JGBs also found relatively few buyers. But analysts said worries eased a bit after Japan's Finance Ministry recently sent a questionnaire to bond investors that they took as a signal of efforts to calm the market by suggesting it might issue less debt.
When yields softened earlier in the week in Japan, the bond market rallied, Thomas Matthews of Capital Economics said in a report. The 'somewhat soft 40-year JGB auction seems to have contributed to a slight souring of the global mood,' he said.
The dollar fell to 144.16 Japanese yen from 144.36 yen. The euro rose to $1.1322 from $1.1329.
Elsewhere in the region, Hong Kong's Hang Seng index lost 0.5% to 23,258.31, while the Shanghai Composite index ended flat at 3,393.93.
Australia's S&P/ASX 200 edged 0.1% higher to 8,396.90. The S&P/NZX 50 in New Zealand fell 1.8% after the central bank cut its benchmark interest rate by 0.25 percentage points, as expected, to 3.25%.
In South Korea, the Kospi jumped 1.3% to 2,670.15, helped by a global rally in technology shares. Samsung Electronics' shares climbed 3.7% while SK Hynix was up 2.7%.
In Taiwan, the Taiex added 0.1%. India's Sensex slipped 0.1%.
Oil prices rose after the U.S. authorization to Chevron to export crude from Venezuela expired Tuesday. The Trump Administration has been trying to wind down U.S. reliance on Venezuelan energy.
U.S. benchmark crude oil gained 45 cents to $61.35 per barrel. Brent crude, the international standard, was up 42 cents at $63.99 per barrel.
On Tuesday, Wall Street resumed its roller coaster ride created by U.S. President Donald Trump's trade policies after he delayed his threatened 50% tariff on imports from the European Union. U.S. markets were closed for Memorial Day on Monday, and the S&P 500 leaped 2.1% in its first trading since Trump's announcement.
The Dow Jones Industrial Average added 1.8% and the Nasdaq composite gained 2.5%.
Nvidia rallied 3.2% and was the strongest single force driving the S&P 500 higher ahead of its profit report coming on Wednesday. It's the last to report this quarter among the 'Magnificent Seven' Big Tech companies.
Talks with the EU have raised hopes the United States can reach a deal with one of its largest trading partners, helping to keep global commerce moving and avoiding a possible recession. Trump declared a similar pause on his stiff tariffs for products coming from China earlier this month, which launched an even bigger rally on Wall Street at the time.
Surveys have shown U.S. consumers are concerned over the economy's prospects and where inflation may be heading because of tariffs.
However, a report Tuesday by the Conference Board said confidence among U.S. consumers has improved more in May than economists expected.
Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.47% early Wednesday from 4.51% late Friday. It had risen last week, in part because of worries about the U.S. government's rapidly increasing debt.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
an hour ago
How Social Media Is Reshaping Politics in Japan—for Better or Worse
Social media has rapidly become a force in Japanese politics—shaping public opinion and tipping the scales in national and local elections around Japan. What does this mean for political engagement, trust in mainstream institutions, and the future of Japanese democracy? The Internet and Political Engagement Most Japanese voters rarely observe political debates or take the time to follow policymaking directly, instead relying on the media to stay informed. For decades, that meant newspapers. National surveys by the Association for Promoting Fair Elections (APFE) showed that by the early 2000s, though, TV had overtaken newspapers as the main source of political information. Today, the Internet has surpassed both. At the same time, Ikeda Ken'ichi, an expert on voting behavior, notes that political participation in Japan remains low compared to other mature democracies. Japan's stable but stagnant political environment, dominated by entrenched political interests and personal political support groups, may dampen the motivation to vote. In an APFE survey conducted in the wake of the 2024 House of Representatives election, common reasons respondents gave for abstaining included 'no interest in elections' (24.3%), 'elections don't improve politics' (17.3%), and 'my vote doesn't matter' (11.6%). Young voter turnout in particular has hovered at about half the rate of older generations, raising serious concerns about the health of Japanese democracy. Yet the Internet, especially social media, has opened new doors for political engagement, particularly among those who feel alienated from mainstream politics. People who find traditional media coverage inadequate often turn to the Internet to explore issues on their own terms. Social platforms enable them to connect with others who share their views—or push back against those who see things differently. In a phenomenon known as 'filter bubbles,' users are increasingly exposed to content that matches their beliefs and engage with like-minded users in echo chambers, reinforcing their preexisting views. The political rise of Donald Trump in the United States has been driven by this dynamic. Social media has fueled political polarization, but it has also drawn more people into the political conversation and boosted turnout. In this way, social media acts as a double-edged sword for democracy. The Rise of Social Media Campaigns in Japan Gubernatorial elections in Tokyo and Hyōgo in 2024 showcased just how transformative social media can be. For candidates lacking traditional political capital—such as local support bases, funding, or name recognition—social media offered a vital battleground for guerrilla-style campaigning. Candidates livestreamed speeches, shared campaign events in real time, and rallied support online. These tactics brought a sense of immediacy and authenticity that resonated with many voters, especially those disillusioned with establishment politics, conventional media, or vested interests. This kind of impassioned support for political candidates was sometimes likened to oshikatsu—a term describing the enthusiasm and devotion fans show for their favorite idols. Such social-media-driven campaigns tend to center around charismatic individuals rather than 'faceless' party platforms or abstract policy debates. The Democratic Party for the People made major gains in the 2024 House of Representatives election, but analysis of the seventh Japanese Election Study political survey showed that social media users were not necessarily aligned with the policies advocated by the party or its leader, Tamaki Yūichirō. Rather, disillusioned voters active on social media appear to have been drawn to Tamaki personally, irrespective of his ideology. The flip side of social media politics is its susceptibility to manipulation. Slander, rumors, fake news, and eye-catching stunts can distort the political process. Globally, Internet-based misinformation campaigns, attacks on political opponents, and foreign interference have plagued elections since the 2010s. In Romania's 2024 presidential race, for example, support for an obscure, far-right candidate surged via social media—only to be later traced to foreign influence, leading to the annulment of the election. In Japan, concerns have arisen over possible violations of the Public Offices Election Act and the role of PR firms in manipulating social media narratives, prompting calls for clearer regulations and penalties. Long-Term Shifts in Voter Behavior Given these dynamics, can the Internet fundamentally reshape how Japanese people perceive politics or vote? In the short term, the effects are likely to vary depending on the type of election and the demographics involved. Urban areas with more young people, higher social media use, and a larger share of residents born elsewhere are fertile ground for online campaigns—especially in local, personality-driven races like the gubernatorial elections that were held in Tokyo and Hyōgo. But in rural regions with older populations and limited social media penetration, or in party-centered contests like national legislative races, the impact may be more muted. That said, recent developments—rising prices, rice shortages, geopolitical tensions, major accidents, and natural disasters—have shaken public confidence and intensified political frustration. As seen during the COVID-19 pandemic, such periods are conducive to conspiracy theories and misinformation, often spread via social media. When these conditions align, even short-term shifts in social and political awareness can occur. Meanwhile, long-term transformations are also underway. The 2024 APFE survey showed that older generations still rely on newspapers, middle-aged voters favor TV, and younger people increasingly turn to the Internet for political information. As generations shift, Internet influence is likely to grow. Another major change is the decline of traditional intermediary organizations like business associations, labor unions, and religious groups that once helped shape party-centered political identity and behavior. These groups play a key role in 'political socialization,' but as their influence wanes, individuals find fewer structured ways to understand and engage with politics. Instead, the Internet and online communities are gradually taking on that role. Over time, these changes may fundamentally reshape how Japanese voters think and act politically. Social media has proven to be a powerful tool for new political movements. But established players—with deeper pockets and greater organizational reach—could eventually learn to use it just as effectively and strategically, if not more so. Political success in a democracy hinges on effectively delivering one's message to large numbers of voters, and communication tools—social media included—are likely to continue to grow and evolve. The future of democracy will hinge on how well we navigate this evolving media environment. As AI-generated deepfakes and sophisticated misinformation campaigns become harder to detect, it will be critical for news organizations, monitoring groups, and platform companies to step up their fact-checking efforts. At the individual level, information literacy must be strengthened across all generations. This includes diversifying news sources, checking facts, and fostering critical thinking through discussion with others. Understanding political dynamics requires more than reacting to sensational headlines; it demands the ability to discern the broader structures behind them. Finally, civic education must also evolve, especially since the voting age was lowered to 18. Teaching young people how politics works and how to make informed electoral choices is crucial to sustaining a healthy democracy. (Originally published in Japanese. Banner photo: Saitō Motohiko, ousted as Hyōgo governor in a no-confidence vote, addresses a crowd of voters holding up smartphones on the final day of his reelection campaign, November 16, 2024. © Kyōdō.)
2 hours ago
Chinese Premier Urges Japan to Stand against Trump Tariffs
News from Japan World Jun 3, 2025 23:11 (JST) Beijing, June 3 (Jiji Press)--Chinese Premier Li Qiang on Tuesday urged Japan to deepen cooperation with China to stand against high U.S. tariffs. In a meeting in Beijing with a delegation from the Japanese Association for the Promotion of International Trade, Li said that the tariffs imposed by U.S. President Donald Trump's administration are a defiant challenge to nations around the world. According to sources with access to discussions at the meeting, Li said that the recent agreement between the United States and China to reduce their tariffs was based on the Chinese side's views. He also voiced hopes for expansion of Japanese companies' investments in China. Former House of Representatives Speaker Yohei Kono, who heads the delegation, said he is concerned that Japan-China relations may be rocked by outside influences. [Copyright The Jiji Press, Ltd.] Jiji Press
The Mainichi
2 hours ago
- The Mainichi
Basketball: Japan guard Tominaga joins Hokkaido in B-League
TOKYO (Kyodo) -- Sharpshooting Japanese guard Keisei Tominaga has signed a contract with Levanga Hokkaido for the 2025-2026 season, the B-League club announced Tuesday. The 24-year-old former U.S. college standout saw limited game time the past season playing for the Indiana Mad Ants in the NBA's developmental G League. "I'll use my ability behind the three-point line and give all I have to contribute to the team winning the B-League for the first time," Tominaga, who will wear No. 30 for Hokkaido, said in a statement. The Aichi Prefecture native played for Ranger College in Texas and the University of Nebraska-Lincoln. Tominaga represented Japan both at the 2023 FIBA World Cup and the 2024 Paris Olympics, while he also represented his country in 3x3 basketball at the Tokyo Olympics in 2021.
