Japan Economic News ·
Nikkei Average Plunges 1,800 Yen, Yen in Upper 163 Range… Caution Ahead of Triple Decline and BOJ Meeting
On the 24th, the Tokyo market saw a "triple decline" of stocks, bonds, and currencies. The Nikkei average fell more than 1,800 points led by semiconductor shares to close at 64,611. The long-term interest rate rose to the 2.8% level, and the yen traded in the upper 163 range. Although the BOJ is expected to keep rates unchanged at its meeting next week, vigilance over upside price risks is growing, and the market remains volatile.
12 sources2 min read
Nikkei Average Plunges More Than 1,800 Points, Broad Decline on Middle East Oil Surge In addition to the sharp drop in AI and semiconductor stocks, rising oil prices due to Middle East risks heightened economic concerns. The Nikkei average closed at 64,611, down 1,811 points from the previous day, as currencies and bonds were also sold off in a broad decline. 123
BOJ to Keep Rates on Hold at Next Week's Meeting, Wary of Price Risks At the monetary policy meeting on the 30th-31st, the policy rate is almost certain to be kept at 1%. The outlook report is expected to emphasize upside price risks stemming from the weak yen and the situation in the Middle East. In the market, expectations for an October rate hike are also growing. 456
US Treasury Warns Against Yen's Decline, Requests Rare Rate Hike The US Treasury warned in its currency report that "excessive volatility of the yen is undesirable" and urged the BOJ to raise rates further. Finance Minister Katayama again stressed "decisive steps," but the market continues to see the effect of "verbal intervention" fading and proving ineffective. 789
Global Bond Sell-Off Accelerates on Middle East Oil Surge, Long-Term Yields Spike Due to heightened tensions in the Middle East, WTI crude oil temporarily rose to the $93 per barrel level, strengthening global fears of a resurgence in inflation. Long-term interest rates in the UK, Germany, and Japan broke through key levels, complicating the decisions of major central bank meetings next week. 10
Government Moving to Declare End of Deflation, Keeping Eye on Middle East Impact Minister of State for Economic and Fiscal Policy Makoto Utsumi submitted the FY2026 Economic and Fiscal White Paper to the cabinet. While praising record corporate profits and wage increases, he pointed out that the tense situation in the Middle East could cast a shadow over the decision to "declare an end to deflation." 11
Risk That Historic Yen Weakness Will Slow Overseas Buying of Japanese Stocks According to Bloomberg analysis, the historic yen weakness is squeezing foreign currency-denominated returns, and there is a growing possibility that overseas investors holding Japanese stocks without currency hedging will hold off on buying. This is attracting attention as a new risk factor capping the upside for the Nikkei average. 12
Japan Economic News
Compact morning updates on key Japanese economic news, including Nikkei, exchange rates, and monetary policy.