Latest news with #HajimeTakata


The Mainichi
18 hours ago
- Business
- The Mainichi
Tokyo stocks end slightly higher amid caution over US jobs data
TOKYO (Kyodo) -- Tokyo stocks ended slightly higher Thursday after directionless trading as many investors took to the sidelines ahead of the release of U.S. jobs data. The 225-issue Nikkei Stock Average ended up 23.42 points, or 0.06 percent, from Wednesday at 39,785.90. The broader Topix index finished 2.95 points, or 0.10 percent, higher at 2,828.99. On the top-tier Prime Market, gainers were led by iron and steel, nonferrous metal and transportation equipment issues. The U.S. dollar briefly declined to around the mid-143 yen line in Tokyo as investors grew cautious ahead of the release of key U.S. jobs data later in the day after U.S. employment data from payroll processor ADP turned out weaker than expected, raising uncertainty about the world's largest economy. But the U.S. currency later rebounded to the upper 143 yen zone, as the Japanese currency was sold on eased expectations for an early interest rate hike by the Bank of Japan after Hajime Takata, its hawkish member, said the central bank is pausing to raise the rate for now, dealers said. Stocks moved in and out of positive territory as investors grew wary of taking bold positions after the ADP report for June showed that private payrolls unexpectedly fell for the first time in about two years, brokers said. "Investors who have so far perceived the labor market is solid are focused on whether they can maintain the view" when the U.S. jobs data for June comes out, said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co. The market found some support from buying of heavyweight semiconductor-related issues following an overnight advance by the tech-heavy U.S. Nasdaq index. However, persistent worries about tariff negotiations dampened sentiment, with a Japan-U.S. trade deal looking uncertain after other countries already reached agreements with Washington.


The Mainichi
20 hours ago
- Business
- The Mainichi
BOJ policymaker suggests rate hike pause amid tariff uncertainties
TSU, Japan (Kyodo) -- A Bank of Japan board member said on Thursday the central bank is pausing interest rate hikes for now but should resume them after monitoring the situation amid heightening uncertainties due to higher U.S. tariffs. "I believe that the bank is currently only pausing its policy interest rate hike cycle and should continue to make a gear shift after a certain period of 'wait and see,'" Hajime Takata, a hawkish member, said in a speech in Tsu, Mie Prefecture. Takata's remarks came days after U.S. President Donald Trump threatened to impose even higher tariffs on Japanese products, with bilateral trade negotiations stalled. With Trump's trade policy expected to weigh on Japan's export-driven economy, the BOJ kept its benchmark interest rate unchanged at around 0.5 percent in the latest policy meeting last month, marking the third straight gathering without an adjustment. Given that uncertainties "remain high," Takata said, the BOJ may need to "nimbly" shift back to rate hikes depending on policy changes in the United States and take action if there is increased downward pressure on the economy. The BOJ has raised its key rate three times since March last year, when it carried out its first hike in 17 years as part of normalization efforts following a decade of unorthodox easing. Takata also said the central bank should "gradually and cautiously" normalize monetary policy, based on the recognition that it has finally reached the point of returning from unconventional measures to policy conduct for normal times.


Japan Times
21 hours ago
- Business
- Japan Times
BOJ rate hikes to resume after temporary pause, policy board member says
The Bank of Japan's rate hike cycle will resume after "only' a temporary pause, policy board member Hajime Takata warned, keeping his hawkish tone even after U.S. President Donald Trump clouded the economic outlook by threatening to impose tariffs on Japanese goods higher than those previously touted. "I believe that the bank is currently only pausing its policy interest rate hike cycle and should continue to make a gear shift after a certain period of 'wait and see,'' Takata said Thursday in a speech to local business leaders in Mie Prefecture. Takata's remarks made it clear that the BOJ is continuing to look for further opportunities to raise rates even after the prospects for a trade deal with the U.S. appeared to recede after Trump floated the idea of increasing tariffs to 35%, compared with a previous plan to hike an across-the-board duty to 24% starting next week. Takata, considered a hawkish member of the central bank's board, said authorities "may need to nimbly shift back to the rate hike cycle in response to policy changes' in the U.S. His remarks indicate there's still a chance of another hike this year depending on the effects of the levies. Given high uncertainties regarding U.S. policies, "the bank is required to conduct monetary policy in a more flexible manner without being too pessimistic,' he said. Takata was speaking as Japan's pace of inflation has stayed elevated at the highest level among Group of Seven major industrial nations. A key measure for the cost of living hit a fresh two-year high in May, and a record of the BOJ's meeting last month reflected a shared awareness among officials that price growth is a little stronger than expected. "Japan's economy is at a stage where the price stability target is close to being achieved,' Takata said. "The key to a further gear shift in monetary policy is the sustainability of positive corporate behavior.' BOJ Gov. Kazuo Ueda has repeatedly said underlying inflation remains below the bank's 2% target and he wants to see the trend rise before raising rates again. He also wants to confirm the likely magnitude of the economic impact from U.S. trade policies. In previous speeches, Takata, a veteran economist and former bond analyst, has noted the need to raise borrowing costs as economic activity improves. Remarks of that nature in the weeks running up to the BOJ's historic end of its massive monetary easing program in March 2024 helped investors prepare for the coming shift. "Even if the economy remains robust at the moment, the longer concerns about tariffs remain, the greater the downward pressure on economic activity could become,' Takata said Thursday. The BOJ will deliver its next policy decision on July 31, with more than 90% of BOJ watchers surveyed last month expecting the benchmark rate to be left at 0.5%.


Reuters
a day ago
- Business
- Reuters
BOJ policymaker calls for resuming rate hikes after temporary pause
TOKYO, July 3 (Reuters) - The Bank of Japan should resume interest rate hikes following a temporary pause to evaluate the impact of U.S. tariffs, board member Hajime Takata said, signalling optimism the country was on track to durably achieve the central bank's price goal. While the BOJ must take its time scrutinising the fallout from U.S. tariffs, it may need to "nimbly" shift back to rate hikes in response to any changes to U.S. policies, he said. "My view is that the BOJ is currently only pausing its policy interest rate hike cycle, and should continue to make a gear shift (from ultra-loose monetary policy) after a certain period of 'wait and see'", Takata said in a speech on Thursday. "Given uncertainties regarding various U.S. policies remain high, the BOJ must conduct monetary policy in a more flexible manner without being too pessimistic," he said. The remarks by Takata, who is viewed by markets as taking a neutral to slightly hawkish stance on monetary policy, highlight the BOJ's resolve to resume rate hikes once there is more clarity on whether the economy can weather the hit from U.S. tariffs. The BOJ ended a massive stimulus last year and in January raised short-term rates to 0.5%. While the central bank has signalled readiness to raise rates further, the expected impact of U.S. levies forced it to cut its growth forecasts in May. Takata said Japan was close to achieving the BOJ's 2% inflation target with robust corporate profits and labour shortages driving up wages and building price pressures. Medium- and long-term inflation expectations also continue to heighten steadily due not just to rising raw material costs but wage hikes, he said, adding that Japan is finally seeing signs of home-made inflation - a prerequisite for rate hikes. While predicting that such an assessment will remain "broadly" unchanged despite Trump's April 1 announcement of sweeping reciprocal tariffs, Takata said he wanted to scrutinise whether U.S. duties would not derail the economy's momentum towards achieving the BOJ's price target. Specifically, the BOJ must assess whether U.S. tariffs could hurt exports, capital expenditure and corporate appetite to continue wage hikes, he said. If the U.S. Federal Reserve were to cut interest rates to support the economy, the divergence between the BOJ's rate-hike bias and the Fed's easing could push up the yen and hit corporate profits, he added. Takata, however, said the hit to Japan's economy from U.S. tariffs will likely be limited compared with the bilateral trade friction in the 1990s as Trump's levies target a wide range of countries - not just Japan. Japanese companies' robust profits and financial buffers also make its economy more resilient to external shocks than in the 1990s, he added. With firms now more keen to raise prices and wages, Japan is breaking free from a long-held view among society that inflation and wage growth will remain stagnant, Takata said. "Japan's economy ended up experiencing several 'false dawns,' or temporary economic recoveries, interrupted by global demand shocks. My expectation is that Japan will see a 'true dawn' this time," Takata said. "I believe the BOJ should gradually and cautiously shift gears in its monetary policy," based on the view the economy was ready for a full withdrawal of an unconventional easing programme.
Yahoo
a day ago
- Business
- Yahoo
BOJ policymaker calls for resuming rate hikes after temporary pause
By Leika Kihara TOKYO (Reuters) -The Bank of Japan should resume interest rate hikes following a temporary pause to evaluate the impact of U.S. tariffs, board member Hajime Takata said, signalling optimism the country was on track to durably achieve the central bank's price goal. While the BOJ must take its time scrutinising the fallout from U.S. tariffs, it may need to "nimbly" shift back to rate hikes in response to any changes to U.S. policies, he said. "My view is that the BOJ is currently only pausing its policy interest rate hike cycle, and should continue to make a gear shift (from ultra-loose monetary policy) after a certain period of 'wait and see'", Takata said in a speech on Thursday. "Given uncertainties regarding various U.S. policies remain high, the BOJ must conduct monetary policy in a more flexible manner without being too pessimistic," he said. The remarks by Takata, who is viewed by markets as taking a neutral to slightly hawkish stance on monetary policy, highlight the BOJ's resolve to resume rate hikes once there is more clarity on whether the economy can weather the hit from U.S. tariffs. The BOJ ended a massive stimulus last year and in January raised short-term rates to 0.5%. While the central bank has signalled readiness to raise rates further, the expected impact of U.S. levies forced it to cut its growth forecasts in May. Takata said Japan was close to achieving the BOJ's 2% inflation target with robust corporate profits and labour shortages driving up wages and building price pressures. Medium- and long-term inflation expectations also continue to heighten steadily due not just to rising raw material costs but wage hikes, he said, adding that Japan is finally seeing signs of home-made inflation - a prerequisite for rate hikes. While predicting that such an assessment will remain "broadly" unchanged despite Trump's April 1 announcement of sweeping reciprocal tariffs, Takata said he wanted to scrutinise whether U.S. duties would not derail the economy's momentum towards achieving the BOJ's price target. Specifically, the BOJ must assess whether U.S. tariffs could hurt exports, capital expenditure and corporate appetite to continue wage hikes, he said. If the U.S. Federal Reserve were to cut interest rates to support the economy, the divergence between the BOJ's rate-hike bias and the Fed's easing could push up the yen and hit corporate profits, he added. Takata, however, said the hit to Japan's economy from U.S. tariffs will likely be limited compared with the bilateral trade friction in the 1990s as Trump's levies target a wide range of countries - not just Japan. Japanese companies' robust profits and financial buffers also make its economy more resilient to external shocks than in the 1990s, he added. With firms now more keen to raise prices and wages, Japan is breaking free from a long-held view among society that inflation and wage growth will remain stagnant, Takata said. "Japan's economy ended up experiencing several 'false dawns,' or temporary economic recoveries, interrupted by global demand shocks. My expectation is that Japan will see a 'true dawn' this time," Takata said. "I believe the BOJ should gradually and cautiously shift gears in its monetary policy," based on the view the economy was ready for a full withdrawal of an unconventional easing programme. Sign in to access your portfolio