Barron’s (May 23)
“It’s time to worry about Japan and the yen carry trade again.” Rising yields in Japan could spell potential trouble in the U.S. The latest sale of Japan Government Bonds (JGBs) “was met with much less interest than anticipated,” selling at lower-than-expected prices and higher yields. “Those higher yields are trouble for the yen carry trade, which is a bad sign for U.S. Treasuries. Money borrowed in Japan often goes to buy U.S. debt, leading to a potential domino effect.”
Tags: Carry trade, Domino effect, Japan, JGBs, Prices, Rising yields, Treasuries. Debt, Trouble, U.S., Yen
CNN (May 1)
“Another day, another piece of evidence that President Donald Trump’s escalating trade war with friends and foes is hurting the global economy. Today: Japan’s central bank cut its economic growth forecast for the country in half.” The Bank of Japan “lowered its expectations for 2025 gross domestic product growth to an anemic 0.5%, down from the previous projection of +1.1%, made in January.”
Tags: 0.5%, 2025, Anemic, BOJ, Economic growth, Escalating, Evidence, Expectations, Foes, Forecast, Friends, GDP, Global economy, Hurting, Japan, Trade war, Trump
South China Morning Post (April 18)
Japan is viewed as “Southeast Asia’s most trusted partner.” Extending stability, “amid global uncertainty, Japan’s ‘diplomatic consistency’ and pacifist stance solidified its position as the most trusted major power.”
Tags: Diplomatic consistency, Global uncertainty, Japan, Major power, Most trusted partner, Pacifist stance, Southeast Asia, Stability
Financial Times (February 27)
Although “some demographic experts had been hopeful of a pent-up baby boom in Japan following the pandemic,” 2024 confirmed the worst. “The number of babies born in Japan last year fell to the lowest level since records began 125 years ago as the country’s demographic crisis deepens and government efforts to reverse the decline continue to fail.” For nine years straight, “the decline in births has continued unabated…. Combined with a record 1.6mn deaths last year, the figures mean Japan’s population shrank by almost 900,000 people, net of immigration.”
Tags: 2024, Babies, Baby boom, Births, Deaths, Decline, Demographic crisis, Experts, Fail, Government, Immigration, Japan, Pandemic, Pent-up, Population, Record
Reuters (February 4)
“Japan’s exports of agricultural, forestry and fishery products rose 3.7% to a record high in 2024, despite China’s ban on seafood imports following Tokyo Electric Power’s discharge from the Fukushima nuclear power plant.” These exports reached 1.507 trillion yen ($9.7 billion) last year, up nearly from 1.5 trillion yen from 2023. “Exports to China plunged 29.1% to 168.1 billion yen in 2024, but exports to the United States rose 17.8% to 242.9 billion yen, making the U.S. Japan’s top export destination for the first time in 20 years.”
Tags: 2024, 3.7%, Agricultural, Ban, China, Exports, Fishery, Forestry, Fukushima, Imports, Japan, Record high, Seafood, Tepco, U.S.
Reuters (December 18)
“If only M&A solved everything. Japan’s Nissan Motor and Honda Motor certainly need help.” A merger, possibly involving Mitsubishi Motors as well, could potentially achieve cost cuts, “but as Stellantis’s woes show, tie-ups alone don’t create great manufacturers.”
Tags: Cost cuts, Honda, Japan, M&A, Manufacturers, Merger, Mitsubishi, Nissan, Stellantis, Tie-ups, Woes
Mint (December 12)
“Commercial real estate investment volume in Japan jumped 21% year-on-year to ¥2.6 trillion in the first half, according to Jones Lang LaSalle Inc.,” placing Tokyo ahead of New York and London as “the most active global city.” Largely recovering from the pandemic, Tokyo office vacancies in November fell to a four-year low of 4.16%.
Tags: ¥2.6 trillion, 21%, Commercial real estate, First-half, Investment volume, Japan, Jones Lang LaSalle, London, New York, November, Office vacancies, Pandemic, Tokyo
Barron’s (December 2)
“Japan was conspicuously not mentioned” in tariffs Trump has specified for countries including China. This leaves some “wondering if China has become the new Japan and Japan is the new China.” Will China’s “economy stagnate over a sustained period, like Japan’s did for decades, and become a market to avoid?” In contrast, “Japan has shown signs of life lately. It’s viewed favorably by the new administration…. Does that mean the land of the rising sun is once again on the rise?”
Tags: Avoid, China, Conspicuously, Economy, Favorably, Japan, Market, New administration, Rising sun, Stagnate, Tariffs, Trump
Trader’s Magazine (December 2)
“Assets of the top 100 asset owners globally have returned to growth in 2023 after a fall of 8.7% in 2022.” Achieving a brisk 12.3% increase in 2023, “the world’s largest 100 asset owners (the ‘AO100’) now hold a record US$26.3 trillion.” Chief among them is the “Government Pension Investment Fund of Japan…with an AUM of US$1.59 trillion.” The top three also includes the two largest sovereign wealth funds. Norway’s Norges Bank Investment Management in second place with AUM of US$1.55 trillion while China Investment Corporation is now third globally with US$1.24 trillion.”
Tags: 12.3%, 2023, Assets, AUM, China, Government Pension Investment Fund, Growth, Japan, Norway, Record, Top 100, US$26.3 trillion
Bloomberg (November 27)
“As China’s assault on the world’s automotive industry gathers speed, Japan’s national champions are emerging as some of the biggest victims. In China itself, the world’s largest car market, Japanese automakers are fighting for survival as local competitors flood showrooms” with EVs. Chinese carmakers are also “pushing into Southeast Asia, rapidly gaining ground in what has long been a stronghold for legacy brands like Toyota, Honda and Mitsubishi.” We’ve transitioned from “Made in Japan to Made in China,” with Japan’s share of global passenger car production essentially halved (from 21.6% to 11.4%) over the past 25 years while China’s share has rocketed from 1.4% to 38.4% in 2023.
Tags: Automakers, Automotive industry, Car market, Carmakers, China, Competitors, EVs, Honda, Japan, Legacy brands, Mitsubishi, Southeast Asia, Stronghold, Survival, Toyota, Victims
