Latest news with #Japan-U.S.
The Mainichi
9 hours ago
- Business
- The Mainichi
Tokyo stocks end mixed before outcome of Fed, BOJ policy meetings
TOKYO (Kyodo) -- Tokyo stocks ended mixed after directionless trading Wednesday as investors awaited the outcome of monetary policy meetings being held in the United States and Japan. The 225-issue Nikkei Stock Average fell 19.85 points, or 0.05 percent, from Tuesday to 40,654.70. The broader Topix index finished 11.54 points, or 0.40 percent, higher at 2,920.18. On the top-tier Prime Market, gainers were led by nonferrous metal and textile and apparel issues, while air transportation and service shares were the main decliners. The U.S. dollar weakened to the upper 147 yen range in Tokyo after U.S. Treasury yields declined ahead of the outcome of the Federal Reserve policy meeting. On the stock market, investors refrained from trading actively as they waited for clues about further interest rate increases from the Bank of Japan, although it is widely expected to keep intact the benchmark rate this time, brokers said. "Market participants are paying close attention to possible remarks (from the BOJ chief) about an additional rate hike within the year" following a Japan-U.S. trade deal reached last week, said Yuta Okamoto, market analyst at Tokai Tokyo Intelligence Laboratory Co. The Nikkei benchmark dropped for the fourth straight trading day as heavyweight Advantest erased earlier gains and ended lower as investors locked in gains after the chip testing equipment maker released Tuesday solid earnings for the April-June period. Meanwhile, the market was supported by bargain-hunting after the Nikkei index lost more than 1,100 points over the past three trading days.
Yomiuri Shimbun
9 hours ago
- Business
- Yomiuri Shimbun
Lack of Japan-U.S. Trade Deal Document Causes Worry; 2 Govts Put Differing Spins on Details of Agreement
Concerns are mounting after it became apparent that there is no joint document outlining the tariff agreement between Japan and the United States that was reached in negotiations with the administration of U.S. President Donald Trump. The Japanese government has stated that it does not plan to create such a document in the future. However, the absence of such a document has already revealed discrepancies in explanations and perceptions between Japan and the United States, potentially fueling future disputes. At a press conference on Tuesday, economic revitalization minister Ryosei Akazawa, who led the Japanese delegation in the Japan-U.S. trade negotiations, emphasized, 'We want to see tariff reductions implemented quickly, rather than focusing on creating an agreement document.' His comment stems from concerns that a lengthy process to create a formal agreement document could delay the implementation of the Japan-U.S. accord. Fearing the agreement's terms could be overturned — particularly the auto tariff reductions Trump had already approved — a Japanese government official stated: 'If we were to create a document, we would need President Trump's approval. Japan might also face new demands, and that would open a whole new can of worms.' However, the United States has agreed to a trade deal with the United Kingdom and is expected to issue a joint statement over trade agreements with the European Union. In contrast, with no formal agreement document, Japan and the United States each released their own summaries, which revealed discrepancies in their explanations and understandings of the agreement. Trump asserted that Japan would invest $550 billion (about ¥81 trillion) in the United States, and the United States would retain 90% of the profits from this investment. Meanwhile, Japan clarified that this sum represents merely a 'framework' encompassing investments, loans and loan guarantees by government-affiliated financial institutions. Akazawa further specified that direct equity investment would account for only 'about 1%-2% of the $550 billion,' suggesting that the investment risk for Japan is minimal. Regarding auto tariffs, a key Japanese priority in the tariff negotiations, Japan emphasizes the reduction from 25% to 15%. However, this reduction is not explicitly stated in the public documents released by the United States. The United States also explicitly stated that Japan would purchase 100 Boeing aircraft, as well as make additional annual purchases of U.S. defense equipment, totaling billions of dollars. However, a Japanese government official countered, 'Many of these purchases are already planned, so there are almost no new ones.' 'We plan to introduce them, taking into account the airlines' existing purchase plans,' said Land, Infrastructure, Transport and Tourism Minister Hiromasa Nakano at a press conference after the Cabinet meeting on Tuesday. In reality, both Japan and the United States are offering explanations that favor their own countries, which has raised concerns among observers about the absence of a formal document. 'It is unthinkable not to create a document during negotiations,' asserted Meisei University Prof. Masahiko Hosokawa. The former Economy, Trade and Industry Ministry official, who has experience with U.S. negotiations, added: 'If Japan leaves the U.S. side's self-serving interpretations, such as those concerning investment in the United States, unchallenged, it will be taken as tacit acceptance, which could lead to future friction and risks.' Takahide Kiuchi, an executive economist at Nomura Research Institute Ltd., emphasized the importance of a formal document for transparency, citing the risk of compromising national interests. 'Even if clarifying the detailed framework reveals discrepancies between the two countries that could lead to the collapse of the agreement, a formal document should still be created,' he said.
The Mainichi
11 hours ago
- Business
- The Mainichi
BOJ likely to raise inflation outlook for FY 2025, keep rate steady
TOKYO (Kyodo) -- The Bank of Japan is likely to raise its inflation projection for the current fiscal year from April amid surging food prices while maintaining its benchmark interest rate at around 0.5 percent at its two-day policy meeting that started Wednesday. The gathering of the central bank's board members comes about a week after Japan and the United States struck a trade deal that will lower tariffs on U.S.-bound shipments, including automobiles, from the rates proposed earlier by Washington. The BOJ is carefully assessing the effects of U.S. trade policy under President Donald Trump, as uncertainties persist over the impact on both the global and Japanese economies, sources close to the matter said. While acknowledging the Japan-U.S. deal provided some relief for Japanese companies, BOJ Deputy Governor Shinichi Uchida warned in a news conference last week that "uncertainties for both the global and Japanese economies remain elevated." Under the bilateral agreement, the U.S. auto tariff of 27.5 percent and the "reciprocal" tariff on Japanese goods of 25 percent were both lowered to 15 percent, reducing the potential impact on Japan's export-reliant economy. Concluding the policy meeting on Thursday, the central bank will release its latest growth and inflation outlooks for the three years from fiscal 2025. In its previous quarterly report unveiled on May 1, core consumer prices, excluding volatile fresh food, were projected to rise 2.2 percent in the current business year. But the inflation forecast is expected to be revised upward, reflecting higher prices for rice and other food items, the sources said, as government data showed that Japan's core CPI remained at or above 3 percent for the seventh straight month through June. Under the leadership of Governor Kazuo Ueda, the BOJ has shifted from a decade of unorthodox monetary easing, raising its short-term interest rate three times since March last year. The central bank has maintained that it will continue to raise interest rates in line with economic activity and prices. However, the BOJ left its key interest rate unchanged at around 0.5 percent at its June meeting, the third consecutive gathering without an adjustment, as it continued to scrutinize the impact of tariff-related developments.
The Mainichi
a day ago
- Business
- The Mainichi
Tokyo stocks drop for 3rd day amid Japan political uncertainty
TOKYO (Kyodo) -- Tokyo stocks ended lower Tuesday for a third consecutive trading day on selling amid political uncertainty in Japan and ahead of a U.S. monetary policy meeting and other key events. The 225-issue Nikkei Stock Average fell 323.72 points, or 0.79 percent, from Monday at 40,674.55. The broader Topix index finished 22.09 points, or 0.75 percent, lower at 2,908.64. On the top-tier Prime Market, decliners were led by transportation equipment, machinery and securities house issues. The U.S. dollar fluctuated in the 148 yen range in Tokyo without clear direction, amid a lack of new incentives. The stock market continued to face selling pressure by investors locking in gains after last week's surge on a Japan-U.S. trade agreement, with auto shares and heavyweight semiconductor-related issues notably falling. "Stocks fell as investors regained calmness about the trade deal that resulted in a 15 percent U.S. tariff (on Japanese imports) and political situations remaining very unclear" in Japan, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. Prime Minister Shigeru Ishiba insists on remaining in office despite calls within his party for him to step down following the ruling coalition's major setback in the latest national election. Investors were also cautious before major economic events later this week, including policy meetings of the U.S. and Japanese central banks as well as releases of earnings results and U.S. jobs data, brokers said.
Yomiuri Shimbun
2 days ago
- Politics
- Yomiuri Shimbun
LDP Lawmakers Meeting: Does The Prime Minister Want To See Trust in The Party Plunge?
If internal strife continues, the Liberal Democratic Party as a whole could be abandoned by the people. Is this what its president wants? The only way to settle the confusion would be for Prime Minister Shigeru Ishiba to announce as quickly as possible his intention to resign. At an informal meeting of LDP lawmakers from both the House of Representatives and the House of Councillors, Ishiba said, 'I will face the future with the resolve to dedicate myself to the nation and the people,' emphasizing his determination to continue to run the government. He explained his reasoning by citing the need to address issues such as U.S. tariff measures, rice policy and debates over social security and taxes. In response, a succession of lawmakers expressed their view that it was unreasonable for the prime minister not to take responsibility for the series of defeats — in the lower house election last year, the Tokyo Metropolitan Assembly election in June and the recent upper house election. Many also called for a general meeting of the party's lawmakers from both houses of the Diet, which is the party's formal decision-making organ, unlike the informal meeting. The Japan-U.S. tariff negotiations have concluded, although there are still outstanding issues such as the lack of a written agreement. Agricultural policy and social security reform will be important issues for any future cabinet. The prime minister's arguments do not justify his resolve to stay on. Respecting the will of the people that has been repeatedly expressed is a prerequisite for tackling policy matters. If the leader who is responsible for national politics acts as if the election never happened, trust in politics will continue to plunge. Will the LDP, which calls itself a party of the people, survive? It is being tested on its ability to cleanse itself. Within the LDP, moves to bring Ishiba down are accelerating. It is said that more than the one-third of party members in the Diet required to convene a general meeting have already signed a petition demanding one. Lawmakers critical of the prime minister are aiming to use the meeting to bring forward the LDP presidential election. There have been fierce internal party struggles in the past. A campaign to oust then Prime Minister Takeo Miki by major party factions and the '40-Day Strife' among factions during the administration of then Prime Minister Masayoshi Ohira are well-known examples. However, with difficult issues such as population decline and the deteriorating security environment, there is no room for a power struggle. The prime minister has already made up his mind to step down. However, he has not decided when to announce his intention to do so. Meanwhile, demonstrations demanding the prime minister's continued tenure have been held outside the Prime Minister's Office following the upper house election. Posts such as 'Ishiba, don't resign,' have also appeared on social media. Some within the party view these activities as being conducted by forces trying to tarnish the party's reputation by stirring up internal strife, not by LDP supporters. It would be a mistake to interpret such moves as public opinion being in favor of the prime minister remaining in office. (From The Yomiuri Shimbun, July 29, 2025)
