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Markets anxious over Japan's risk of 'negative spiral,' top bank MUFG exec says

Markets anxious over Japan's risk of 'negative spiral,' top bank MUFG exec says

TOKYO, Dec 10 (Reuters) - Markets are increasingly worried about Japan's "tail risk" of slipping into a negative spiral, where monetary tightening lags inflation and a weak yen pushes prices higher, the markets chief at top lender Mitsubishi UFJ Financial Group said.
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US backs Japan in dispute with China over radar incident

US backs Japan in dispute with China over radar incident

By Daphne Psaledakis and John Geddie WASHINGTON/TOKYO, Dec 10 (Reuters) - The United States has for the first time criticised China for aiming radars at Japanese military aircraft during a training exercise last week, incidents that the Asian neighbours have given differing accounts of amid
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MUFG Executive Warns of Japan's Potential Economic 'Negative Spiral'

MUFG Executive Warns of Japan's Potential Economic 'Negative Spiral'

The markets are expressing growing concern over Japan's potential 'negative spiral,' a situation where monetary tightening lags behind inflation, leading to a weak yen and rising prices. Hiroyuki Seki, the head of Mitsubishi UFJ Financial Group's Global Markets Business Group, highlighted these concerns, noting that the markets have already priced in a 90% chance of a rate hike by the Bank of Japan (BOJ) this month. The focus is now on how the BOJ will signal its long-term policy path. Seki emphasized the importance of eliminating Japan's extremely low real interest rates to prevent a cycle of inflation and currency depreciation. He suggested that the BOJ should move towards monetary normalization to avoid this negative spiral. The yen's weakness, despite narrowing interest rate differentials with the United States, is partly due to market expectations that Prime Minister Sanae Takaichi's reflationary stance could limit further BOJ tightening.
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Japan's Economic Contraction Deepens Amid U.S. Tariffs and Investment Decline

Japan's Economic Contraction Deepens Amid U.S. Tariffs and Investment Decline

Japan's economy experienced a significant contraction in the July-September period, shrinking at an annual rate of 2.3%, according to a report by the Japanese government. This downturn is attributed to the impact of tariffs imposed by U.S. President Trump and a decrease in public investments. The revised data indicates a more severe contraction than initially reported, with the previous estimate showing a 1.8% annual decline. Exports fell by 1.2% during the quarter, while private residential investment dropped by 8.2%, influenced by changes in Japan's building code. The U.S. had earlier reduced tariffs on Japanese imports from 25% to 15%, but the tariffs on autos continue to pose a challenge to Japan's economy. In response, Japan has committed to investing $550 billion in the U.S. as part of the tariff negotiations.
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US stocks hang near records ahead of a Federal Reserve meeting this week on interest rates

US stocks hang near records ahead of a Federal Reserve meeting this week on interest rates

U.S. stocks are hanging at the edge of their record heights as Wall Street waits to hear from the Federal Reserve later this week on what it will do with interest rates
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Wall Street ticks modestly higher ahead of Wednesday's interest rate decision by the Federal Reserve

Wall Street ticks modestly higher ahead of Wednesday's interest rate decision by the Federal Reserve

Wall Street ticked modestly higher ahead of a highly-anticipated interest rate decision later this week by the Federal Reserve
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Japan's Economy Contracts More Than Expected in Q3, Impacting Global Markets

Japan's Economy Contracts More Than Expected in Q3, Impacting Global Markets

Japan's economy contracted at an annualized rate of 2.3% in the third quarter, according to revised government data. This is a sharper decline than the initial estimate of 1.8% and exceeds economists' forecasts of a 2.0% contraction. The quarter-on-quarter GDP fell by 0.6%, with private consumption showing a slight increase of 0.2%. However, capital expenditure, a key indicator of private demand, decreased by 0.2%, contrary to earlier expectations of growth. External demand remained a drag on growth, with exports minus imports reducing GDP by 0.2 percentage points.
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Asian shares are mixed ahead of interest rate decision by the Fed

Asian shares are mixed ahead of interest rate decision by the Fed

Shares are mixed in Europe and Asia as investors tread cautiously ahead of an interest rate decision this week by the Federal Reserve
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Asian shares are mixed ahead of Fed interest rate decision

Asian shares are mixed ahead of Fed interest rate decision

Shares are mixed in Asia as investors tread cautiously ahead of an interest rate decision this week by the Federal Reserve
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Japan revises July-September GDP contraction to 2.3% from 1.8%

Japan revises July-September GDP contraction to 2.3% from 1.8%

By Satoshi Sugiyama TOKYO, Dec 8 (Reuters) - Japan's economy contracted faster than initially reported in July-September from the previous three-month period, revised government data showed on Monday.
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President Trump Proposes $12 Billion Aid Package for Farmers Affected by Trade War with China

President Trump Proposes $12 Billion Aid Package for Farmers Affected by Trade War with China

President Donald Trump has announced a $12 billion aid package to support U.S. farmers impacted by his trade war with China. The package aims to assist farmers who have faced difficulties selling their crops due to increased tariffs and rising costs. The aid includes $11 billion for row-crop farmers and $1 billion for specialty crops. The announcement was made during a White House roundtable with Agriculture Secretary Brooke Rollins and lawmakers. The aid is intended to provide immediate relief to farmers struggling with market disruptions and to help them plan for future harvests.
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Chinese jets point radar at Japanese aircraft, Japan says

Chinese jets point radar at Japanese aircraft, Japan says

By Tim Kelly, Kiyoshi Takenaka and David Kirton TOKYO, Dec 7 (Reuters) - Japan said on Sunday that Chinese fighter jets had aimed their radar at Japanese military aircraft in two "dangerous" incidents near Japan's Okinawa islands, an account Beijing disputed.