BOJ Deputy Governor Himino signals continued rate hikes including September meeting, warns of upside price risks

Deputy Governor Himino to consider rate hikes including September meeting, wary of upside price risks BOJ Deputy Governor Ryozo Himino said in a speech in Saitama on the 27th, 'We will continue to raise the policy interest rate and adjust the degree of monetary easing.' At a press conference, he emphasized that 'we need to be more aware of upside risks to prices than ever before,' and indicated that the bank would consider additional rate hikes at every meeting, including the policy meeting on September 17-18. 1234

Nvidia net profit 2.3 times higher at 9.5 trillion yen, revenue also record quarterly high Nvidia's results for the May-July 2026 period, announced on the 26th, showed net profit of $59.688 billion (about 9.5 trillion yen), roughly 2.3 times the same period a year earlier, and revenue of $96.221 billion, about 2.1 times higher, both setting records for a quarter. Data center revenue rose about 2.2 times to $89 billion, accounting for over 90% of the total, and the company expects around $108 billion for the August-October period. 56

Nikkei average falls to 66,131 on profit-taking despite Nvidia optimism On the Tokyo stock market on the 27th, the Nikkei average fell 130.18 points from the previous day to 66,131.98. Buying in semiconductor and AI-related stocks led on Nvidia's strong earnings, but profit-taking dominated toward the close, while the TOPIX rose 0.15% to 4,117.22, extending its winning streak to six days. With the Fed chair's speech at the Jackson Hole symposium approaching, a wait-and-see mood also strengthened. 678910

Yen in lower 159 range, flat as BOJ deputy governor remarks lack fresh cues In the New York foreign exchange market on the 26th, the yen stood at 159.28-38 yen per dollar as of 5 p.m., down 11 sen from the previous day, with the dollar stronger. In the Tokyo market on the 27th, it was almost flat at around 159.36 yen as of 3 p.m. With the view that Deputy Governor Himino's remarks did not confirm a September rate hike, dollar buying and yen selling strengthened temporarily. 4811

August monthly economic report keeps recovery assessment, watches earthquakes and heavy rain The government released the August Monthly Economic Report on the 27th, keeping its baseline assessment that the economy 'is recovering moderately' unchanged from the previous month. While saying it needs to watch the impact of Middle East tensions, the Kumamoto earthquake, and heavy rain in Chiba, it upgraded corporate profits to 'improving' and housing construction to 'generally flat.' 12

July machine tool orders rise 50% to 193 billion yen on strong semiconductors and data centers July machine tool orders (final figures) rose 50% from a year earlier to 193 billion yen. Demand for semiconductor manufacturing equipment and data centers continued to be strong, showing the strength of capital investment. 13

10-year JGB yield rises to 2.869% as U.S. yields climb In the domestic bond market on the 27th, the September long-term government bond futures contract closed at 126.40 yen, and the 10-year JGB yield rose 0.005 percentage point from the previous day to 2.869%. The rise in U.S. long-term yields spilled over, with selling also dominating domestic bonds. 14