Consumer inflation in the Tokyo metropolitan area eased in June but remained firmly above the Bank of Japan’s 2% target, leaving the central bank balancing on a policy tightrope, the Wall Street Journal reported. Core consumer prices in Tokyo—excluding fresh food—climbed 3.1% in June from a year earlier, compared with May’s 3.6% increase, government data showed Friday. That was lower than the 3.3% rise expected in a poll of economists by data provider Quick. Tokyo figures are considered an early indicator of nationwide trends.
Read more
Japan is driving Asia's M&A rebound in 2025 with a record $232 billion worth of deals in the first half, and bankers expect the trend to sustain fuelled by multi-billion dollar take-private arrangements, outbound investments and private equity activity, Reuters reported. Management reforms to tackle chronic low valuations among Japanese firms are spurring a flurry of foreign and activist investor interest, while Japan's low interest rates - which support deals - mean the appetite for more deals remains strong, bankers say.
Read more
Japan’s chief trade negotiator Ryosei Akazawa said the country can’t accept the U.S.’ 25% tariffs on cars, adding that the Asian nation’s automakers produce far more cars in the U.S. than they export to America, the Japan Times reported. Japanese automakers make roughly 3.3 million cars in the U.S. a year, a number that’s far larger than the 1.37 million that they ship there, Akazawa told reporters on Thursday before he left for Washington, D.C. to hold his seventh round of trade negotiations with U.S. counterparts. The companies have invested more than $60 billion in the U.S.
Read more
The Bank of Japan should consider additional interest-rate hikes without delay, board member Naoki Tamura said, as it could hit its inflation target sooner than expected, the Wall Street Journal reported. “My basic thinking is that the bank will analyze the data and various information without preconceptions, and will accordingly raise the policy interest rate and adjust the degree of monetary accommodation in a timely and appropriate manner in line with improvements in economic activity and prices, without haste or delay,” he said Wednesday.
Read more
Bento shops have been hit hard by inflation and a weak economy as stagflation takes hold in Japan and makes business difficult for even the most humble of establishments, the Japan Times reported. According to Teikoku Databank, 22 bento shops went bankrupt from January to May, compared to 21 in the same period last year. Bentos — set lunches normally served in box-like containers — are popular in Japan with students, workers and businesspeople on the go and others looking for a quick and cheap meal. They are available at supermarkets, convenience stores and dedicated bento shops.
Read more
Japan's government plans to cut sales of super-long bonds by about 10% from its original plan in a rare revision to its bond programme for the current fiscal year, trimming overall bond issuance as a result, a draft document seen by Reuters showed, Reuters reported. The move aims to soothe market oversupply concerns, after weak demand at recent auctions and a surge in super-long yields to record highs last month rattled the bond market.
Japan’s exports fell in May as shipments of autos to the U.S. dropped nearly 25% from a year earlier due to higher tariffs imposed by President Donald Trump, the Associated Press reported. Exports fell 1.7% year-on-year, which was less than the decline analysts had forecast, the Finance Ministry reported Wednesday. Imports sank 7.7%, reflecting weakening domestic demand and worse than the 2% fall recorded in April. The trade deficit in May was 637.6 billion yen, or $4.4 billion.
The Bank of Japan unveiled a plan to step back from the bond market at a slower pace from next year to ensure market stability while sticking to a path of normalization that includes the possibility of more rate hikes, Bloomberg reported. Governor Kazuo Ueda’s policy board stood pat on its benchmark policy rate of 0.5% at the end of a two-day meeting Tuesday. In a widely expected move the central bank said it would ease the pace of its cuts to monthly bond purchases from the next fiscal year to quarterly reductions of ¥200 billion ($1.34 billion) from the current ¥400 billion.
The Bank of Japan on Tuesday left its policy settings unchanged amid ongoing trade uncertainty and announced that it would slow the pace of its bond-buying reduction after April 2026, the Wall Street Journal reported. The Japanese central bank held its policy rate steady at 0.5%, where it has remained since its last hike in January. BOJ Gov. Kazuo Ueda has said the bank will continue to consider further interest rate increases, depending on economic conditions.
The recent bankruptcy of Marelli, a supplier of automotive components, has sent shockwaves through the global automotive industry, MSN.com reported. This event marks one of the first major corporate failures triggered by the new tariffs imposed by Donald Trump's administration. Marelli's collapse directly impacts Stellantis and its renowned brands, including Jeep, Chrysler and Dodge. Marelli, known for its expertise in vehicle lighting and electronic components, had been grappling with financial difficulties for years.