Japan Economic News ·
Long-term interest rate hits 29-year high of 2.87%, market turmoil with stock plunge and rising bankruptcies
On the 8th, the long-term interest rate in the Tokyo market temporarily rose to 2.87%, marking a 29-year high. This was driven by concerns over fiscal expansion sparked by the government's draft "Basic Policy on Economic and Fiscal Management" and heightened tensions in the Middle East, with the 3% level now within sight. The Nikkei average plunged by 1,437 yen, and corporate bankruptcies in the first half of 2026 exceeded 5,000 for the first time in 12 years. The government revised its description of monetary policy, but market distrust remains strong, and the upward trend in long-term interest rates continues.
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Long-term interest rate temporarily surges to 2.87%, hitting a 29-year high Driven by turmoil in the Middle East and concerns over fiscal deterioration, long-term interest rates have surged, with the 3% level now in sight. The government revised its monetary policy description in the "Basic Policy" to ease concerns over rate hike warnings, but market distrust persists. 12345
Nikkei average falls 1,437 yen to 66,819 yen, down for third straight day on Middle East concerns The Tokyo stock market saw a strong risk-off trend, with semiconductor stocks and major blue-chip shares falling across the board. Declines in South Korean stocks and worsening Middle East tensions added to the pressure. 67
Corporate bankruptcies in first half of 2026 exceed 5,000 for first time in 12 years Amid labor shortages and rising prices, bankruptcies have surged. The number of cases in the first half reached 5,346, up 7.1% year-on-year, with a particularly sharp increase in bankruptcies attributed to soaring labor costs. 7
NY crude oil briefly surges to $75 level, supply fears reignite as Iran truce ends Following U.S. President Trump's declaration ending the truce with Iran, crude oil futures surged. Concerns over rising import costs and inflation in Japan are intensifying. 8
Japan Economic News
Compact morning updates on key Japanese economic news, including Nikkei, exchange rates, and monetary policy.