Japan Economic News ·
Nikkei Average Drops 1,900 Points on Semiconductor Rout; Long-Term Rates Fall but 3% Warning Persists
In the Tokyo market on the 16th, the Nikkei average sharply reversed course, dropping over 1,900 points, falling below the 67,000 yen level due to a plunge in semiconductor stocks. Long-term interest rates fell to 2.69% following comments by Finance Minister Katayama, but a former BOJ board member warned that if rates exceed 3%, government intervention is possible, and caution in the bond market persists. According to a BOJ survey, inflation expectations have reached a record high, with inflationary pressures continuing, and the dollar-yen pair remains stuck in the low 162 yen range.
14 sources2 min read
Nikkei Average Falls 1,915 Yen, Breaks Below 67,000 as Chip Stocks Plunge Against a backdrop of US tech stock declines and overheating concerns, Advantest and Kioxia plunged. The Nikkei average ended at 66,835 yen, down 1,915 yen from the previous day, with a temporary drop of over 2,200 yen. 12
Long-Term Rate Falls to 2.696%, But Concern Over Government Intervention If It Breaks 3% Foreign investors turned net buyers of Japanese government bonds for the first time in six weeks, causing the long-term yield to fall from a 30-year high. However, former BOJ policy board member Seiji Adachi pointed out in a Reuters interview that if yields exceed 3%, the government may ask the BOJ to increase its bond purchases. 34567
49% Say BOJ Rate Hike Negative for Earnings, 26% Do Not Want Further Increases In a Reuters corporate survey, 49% of respondents said the BOJ's rate hike is negative for business performance. 28% said it has already negatively impacted capital investment, and there is growing resistance to future rate increases. 89
Over 90% Expect Prices to Rise in One Year, BOJ Survey Record High In the BOJ's survey on people's living perceptions, the proportion of respondents who said prices will rise in one year reached 90.4%, a record since 2008. The average expected increase rate reached 13.1%, influenced by the Middle East situation and corporate price hikes. 10
Nvidia Announces Collaboration with Japanese Firms on 'Physical AI' CEO Jensen Huang visited Japan and announced collaborations, including GPU supply to SoftBank-led new company 'Noetra' and commercialization of factory robot control AI with Fujitsu and FANUC. The company will also provide technology to Toyota's Woven City. 11
Dollar-Yen Stuck in Low 162 Range Amid US Price Slowdown and Carry Trade In the Tokyo market, the dollar-yen pair traded in a narrow range of 162.03-162.21. While there was dollar selling pressure due to weakening US price indicators, support from the Japan-US interest rate differential and Middle East geopolitical risks left the market without a clear direction. 12
Saizeriya Shares Hit Daily Limit High on Price Hike Consideration Saizeriya, a restaurant chain, saw its shares surge to the daily limit high after reports it is considering price hikes on some menu items. The shift from its low-price strategy has generated expectations of improved profitability. 13
US June Retail Sales In Line with Expectations, Job Data Also Shows Strength US June retail sales rose 0.2% month-on-month, in line with market expectations. Initial jobless claims unexpectedly fell to 208,000, and the Philadelphia Fed Business Outlook Index surged. The resilience of the US economy was confirmed. 14
Japan Economic News
Compact morning updates on key Japanese economic news, including Nikkei, exchange rates, and monetary policy.