North American investors quadruple Japan stock purchases in 1st half
AKIRA INUJIMA
TOKYO -- Value-hunting North American investors sharply raised their bets on the Japanese stock market in the first half of the year as they sought to diversify their portfolios away from the U.S.
North American investors bought 835.4 billion yen ($5.62 billion) worth of Japanese equities on a net basis from January to June, four times the year-earlier level, according to data released by the Tokyo Stock Exchange on Friday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
15 minutes ago
- Japan Today
Nepal to finally open pavilion at Osaka expo
Nepal will open its pavilion at the World Exposition in Osaka on Saturday, becoming the last participant to do so more than three months after the event began, a source familiar with the matter said Friday. The pavilion will be the last to open among the 158 participating countries and regions. Construction of the self-built Type A pavilion had been suspended due to delays by the Nepalese side in paying its Japanese builder, with work resuming on June 16. Organizers gave the green light on Friday for the pavilion to open to visitors, according to the source. The selection process for builders of the overseas pavilions, particularly those categorized as Type A constructions, proved difficult due to their complicated design and lack of coordination by the Japan Association for the 2025 World Exposition. Delays in preparation were noted even before the exhibition began, while unpaid construction fees to subcontractors were an issue for several other pavilions as well. Angola's pavilion, whose operation had been suspended since the day after the expo kicked off on April 13, was reopened on June 26. © KYODO
Yomiuri Shimbun
15 minutes ago
- Yomiuri Shimbun
Value of Auto Exports to U.S. Dives as Japanese Manufacturers Eat Tariff Costs to Maintain Current Prices
Three months after the administration of U.S. President Donald Trump slapped additional tariffs of 25% on imported automobiles, the value of Japanese vehicle exports to the United States is plunging as Japanese automakers slash prices of their models in order to avoid increasing prices in the U.S. These automakers are absorbing the tariff costs and trying to preserve sales volume. However, if the high tariffs remain in place, the auto industry – the backbone of the Japanese economy – will inevitably suffer a punishing blow. According to June trade statistics released by the Finance Ministry on Thursday, the volume of Japanese vehicles exported to the United States increased 3.4% from the same month the previous year, but the value of these exports dropped 26.7%. The unit price per vehicle has become nearly 30% cheaper compared to the figure for June 2024. Many major automakers have made concerted efforts to lower the cost of vehicles exported to their U.S. subsidiaries, which in turn pay lower tariff duties to the U.S. government. According to U.S. market research company Cox Automotive, the average price of a new vehicle in the United States as of the end of June had risen 3% to about $49,000 (about ¥7.2 million) compared to June last year. Some automakers had slightly increased their prices, but the average price was similar to before the tariffs kicked in. While automakers are holding consumer prices largely unchanged, they are reducing costs and trying to squeeze out at least a small profit. 'We'll have no option but to implement some steps to address this issue, even if they are stopgap measures,' a senior official of a major carmaker told The Yomiuri Shimbun. Core element The U.S. auto tariffs are also having an impact on Japanese automakers' production networks. Nissan Motor Co. President Ivan Espinosa cited tariffs as one of the reasons, in addition to sluggish sales, for deciding to cease vehicle production at its Oppama plant in Yokosuka, Kanagawa Prefecture. 'Given the unpredictable nature of the U.S. tariff policies and other external factors, export operations face considerable uncertainty,' Espinosa said Tuesday. 'It is imperative to establish a production capacity that is … supported by a flexible manufacturing system capable of adapting swiftly to external changes.' In 2024, Japan's exports to the United States totaled about ¥21.29 trillion. Auto exports reached about ¥6.26 trillion and accounted for a hefty 30% of the total. About 20,000 to 30,000 components are used for each vehicle, so if auto manufacturers cut production, there also will be a significant impact on parts makers, materials suppliers and other companies involved in the process. The most straightforward method for automakers to lock in profits and maintain supply chains would be to pass on tariff costs through higher consumer prices. However, if one automaker hikes its prices while others do not, that automaker would inevitably face a slump in sales. 'Pricing strategy is a core element of our operations,' a senior official at a Japanese automaker said. 'In this business, quickly adding the full amount of the tariffs onto the price isn't easy to do.' Weaker yen U.S. inflation and fluctuations in foreign exchange markets make it challenging for companies to shift production to the United States to avoid the tariffs. Labor costs are surging in the United States, and investing in plants and equipment to boost production there would come with a huge price tag. As the yen against the U.S. dollar is about ¥40 weaker than it was in 2019 during the first Trump administration, many market observers believe exporting vehicles from Japan is more efficient, even when shipping costs are factored in. However, there are limits to what extent companies can continue to swallow the extra costs inflicted by the tariffs. Honda Motor Co. projects the tariffs will push down its operating profit in the fiscal year ending in March 2026 by ¥650 billion. According to figures released Tuesday by the U.S. Labor Department, the consumer price index in June rose 2.7% from the same month in the previous year. This was higher than May, when 2.4% was logged. The seasonally adjusted CPI for new vehicles dipped 0.3% from the previous month, but industry insiders do not expect this to continue. 'The time for price hikes isn't far away,' a senior official at a Japanese automaker said.
Japan Today
an hour ago
- Japan Today
Japan, EU to hold summit on Wednesday in Tokyo
The leaders of Japan and the European Union are slated to hold a summit in Tokyo on Wednesday to further strengthen their relationship, the government said. Prime Minister Shigeru Ishiba plans to discuss cooperation in a range of areas, including security and the economy, with European Council President Antonio Costa and European Commission President Ursula von der Leyen, the Japanese government said on Friday. The EU is an important strategic partner for maintaining and promoting a free and open international order based on the rule of law, and for working together to tackle challenges in the international community, the government added. At the talks, they are expected to announce the creation of a "Japan-EU Competitiveness Alliance" to bolster their industries by advancing trade and economic security cooperation, diplomatic sources said, as they face higher U.S. tariffs. Sharing concerns over China's military buildup in the Indo-Pacific region and Russia's invasion of Ukraine, the two sides are also considering negotiations on an accord to facilitate the exchange of classified security information, an EU source said. © KYODO
