Japan's Finance Minister Katsunobu Kato said on Monday that cryptocurrencies can be part of a diversified portfolio, CoinDesk.com reported. "Crypto assets have risks surrounding high volatility, but through building an appropriate investment environment, they could be part of diversified investments," Kato said. The minister added that the government has been trying to ensure that innovation isn't stifled by excessive regulation.

The pace of Japan’s consumer inflation stayed well above the Bank of Japan’s target in July even as price growth moderated, supporting market speculation that the central bank will hike its benchmark interest rate again this year, Bloomberg News reported. Consumer prices excluding fresh food rose 3.1% from a year earlier last month, slowing from a 3.3% gain in June, the Ministry of Internal Affairs and Communications reported Friday. The median estimate of economists was for a gain of 3%, with expectations there would be a drag from energy prices after they spiked a year earlier.

Japan’s exports sustained their steepest drop in more than four years in July as U.S. tariffs continued to weigh on global commerce, clouding the outlook for economic growth at a time when personal spending remains unsteady, Bloomberg News reported. Exports fell 2.6% in value from a year earlier, sliding more than the median forecast of a 2.1% decline, the Finance Ministry reported on Wednesday. The downturn, led by cars, auto parts and steel, was the biggest since February 2021. Export volumes rose by 1.2%, suggesting exporters are continuing to absorb U.S.

Japan's economy grew much faster than expected in the second quarter as export volumes held up well against new U.S. tariffs, giving the central bank some of the conditions it needs to resume interest rate hikes this year, Reuters reported. Gross domestic product (GDP) rose 1.0% on an annualised basis, government data showed on Friday, marking the fifth straight quarter of expansion after the previous quarter's contraction was revised to growth. However, analysts warn global economic uncertainties fuelled by U.S.

Japan's government on Friday brushed aside rare and explicit comments from U.S. Treasury Secretary Scott Bessent who said the Bank of Japan was "behind the curve" on policy, which appeared to be aimed at pressuring the country's central bank into raising interest rates, Reuters reported. However, some analysts saw Bessent's comments, coupled with unexpectedly solid domestic growth data, as heightening the chance of a near-term rate hike by the BOJ - a view that pushed up Japanese government bond (JGB) yields and the yen on Friday. "It's a sign from the U.S.

Pressure is mounting within the Bank of Japan to ditch a vaguely defined gauge of inflation as worries about second-round price effects prompt some board members to call for a more hawkish communication of policy and a clearer path to future rate hikes, Reuters reported. BOJ Governor Kazuo Ueda has justified going slow on rate hikes by explaining that "underlying inflation," which focuses on the strength of domestic demand and wages, remains short of the central bank's 2% target.

Japan's annual wholesale inflation slowed for the fourth straight month in July, data showed on Wednesday, underscoring the central bank's view that upward price pressure from raw material costs will dissipate, Reuters reproted. But the wholesale prices of food and agriculture goods continued to rise in a sign of broadening price pressure that will likely keep alive market expectations of an interest rate hike by the Bank of Japan (BOJ).

Former International Monetary Fund Chief Economist Maurice Obstfeld has advised Japan to strengthen its cooperation with Asian and European countries, given disruptions to the global economic and financial order caused by U.S. policies, the Japan Times reported. In a recent interview with Jiji Press, Obstfeld expressed concern that U.S. President Donald Trump's administration has taken policy measures, including high tariffs and tax laws, that expand the federal debt and unpredictability, thereby undermining confidence in the dollar.

The US is working to finalize an announcement that would end the stacking of universal tariffs on Japanese goods, a senior Trump administration official said Friday, Bloomberg News reported. The plans, detailed on the condition of anonymity, would resolve prolonged confusion over how US President Donald Trump intended to impose levies on a key trading partner after striking a deal, and match public comments made by Ryosei Akazawa, Tokyo’s top trade negotiator, after a meeting on Thursday with his counterparts in Washington.