Japan's exports rose more than expected in October for a second straight monthly gain, government data showed on Friday, underpinned by a milder fall in U.S.-bound shipments, resilient demand in other key markets and a weaker yen, Reuters reported. "Although the outlook of exports to the U.S. remains uncertain, it can be interpreted that the impact of U.S. tariffs has been limited," said Takeshi Minami, chief economist at Norinchukin Research.
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Bank of Japan board member Junko Koeda signaled that there could be a rate hike as soon as next month by pointing to the need for normalization, after the yen hit its lowest level in roughly 10 months, Bloomberg News reported. "Given that real interest rates are currently at significantly low levels, I believe that the bank needs to proceed with interest rate normalization,” Koeda said Thursday in a speech to local business leaders in Niigata Prefecture.
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China escalated its retaliation against Japan, suspending imports of Japanese seafood and halting approvals for new films — the latest signs that their diplomatic spat is far from over, Bloomberg News reported. Chinese Foreign Ministry spokeswoman Mao Ning told reporters on Wednesday that Japan had not met the conditions for resuming seafood shipments, effectively confirming earlier Japanese media reports that imports would be suspended. The move comes just months after Beijing lifted a similar ban.
Japan’s economy contracted at a 1.8% annual pace in July-September as President Donald Trump’s tariffs hit exports and private residential investment plunged, the Associated Press reported. Data released by the government Monday showed that on a quarter-by-quarter basis, Japan’s gross domestic product, the sum value of its goods and services, slipped 0.4%, the first contraction in six quarters. The annualized rate shows what the economy would have done if the same rate were to continue for a year.
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Japan's Financial Services Agency (FSA) is considering regulations that would define cryptocurrency as financial products subject to insider trading rules and reduce the tax rate on profits, the Asahi newspaper reported on Sunday, according to Reuters. The regulations will apply to 105 types of cryptocurrencies available in Japan such as bitcoin and ethereum, and would require exchange service providers to disclose information such as the risk of price fluctuations, the paper said.
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Prime Minister Sanae Takaichi on Friday instructed her Cabinet to look into revising the Economic Security Promotion Act given the changing geopolitical situation and rising economic threats, the Japan Times reported. “It’s been three years since the enactment of the Economic Security Promotion Act. Global affairs have continued to change with unprecedented speed and complexity,” Takaichi told a panel on promoting economic security.
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Japanese automakers warned that President Trump’s trade tariffs will cost them billions in lost profits, describing the import duties as a “new normal” that the industry will be forced to endure for the foreseeable future, the New York Times reported. The cautionary message came two months after a trade agreement that Japan negotiated with the United States took effect. Under the deal, Tokyo agreed to invest $550 billion in the United States in exchange for a 15 percent across-the-board tariff on its exports. Mr.
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Nidec Corp. secured a ¥600 billion ($3.9 billion) credit line from MUFG Bank Ltd. and SMBC, easing concerns about potential liquidity strains at the maker of precision motors amid an ongoing probe into accounting issues, Bloomberg News reported. The commitment line agreement comprises two bilateral contracts of ¥300 billion each, unsecured and unguaranteed, with a contract period valid for one year from Nov. 7. Nidec’s stock rose as much as 5% early Wednesday.
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From the launch of new products and services in Japan to facilitating leveraged trading bets, crypto exchanges and some financial firms are rushing to cash in on rising investor enthusiasm for digital assets amid hopes of easing regulations, Reuters reported. The recent surge underscores a higher appetite for riskier investments in Japan as inflation outpaces wage growth and overrides a wariness around crypto investments that followed serious security breaches at exchanges in 2014 and 2018.
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The Bank of Japan held rates steady again, narrowing the window of opportunity to hike before year’s end as it waits for clarity on the impact of tariffs and a political leadership change in Tokyo, the Wall Street Journal reported. In a widely expected move, the central bank maintained its overnight call rate target at 0.5%, extending a pause since its last hike in January. That leaves one more chance to resume tightening this year: at the bank’s final meeting in December. BOJ Gov.
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