Latest news with #BankofJapan
eNCA
an hour ago
- Business
- eNCA
Rice prices double as Japan's core inflation hits 3.7%
TOKYO - Japan's core inflation rate accelerated to 3.7 percent in May, posing a threat to Prime Minister Shigeru Ishiba's leadership ahead of July elections. Rice prices were more than twice as high as they were a year previously, despite the government releasing its emergency stockpile of the staple grain. Frustration over inflation threatens to deal a blow to Ishiba's ruling Liberal Democratic Party next month, when an election for parliament's upper house is due. Friday's data, which excludes volatile fresh food prices, beat market expectations and was up from the 3.5 percent year-on-year rise logged in April. Prices rose for a variety of food products, including non-fresh items, ranging from coffee to chocolate. Electricity bills were 11.3 percent more expensive, and gas fees rose 5.4 percent. Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen -- doubling it for children -- to help households combat inflation ahead of the July elections. The race is crucial to Ishiba after public support for his government tumbled to its lowest level since he took office in October, which observers say was partly caused by a surge in inflation and soaring rice costs. Rice shortages, caused by a supply chain snarl-up, mean the price of the grain was up 101 percent in May, compared to the eye-watering 98 percent rise seen in April. The government began releasing stockpiles in February in an attempt to drive down prices -- something it has only previously done during disasters. A mosaic of factors lies behind the rice shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. Going forward, US tariffs are expected to weigh on Japan Inc, with economists predicting a slowdown ahead. Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy. Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy.
Asahi Shimbun
2 hours ago
- Business
- Asahi Shimbun
Asian shares are mixed and oil gains as world waits to see if U.S. will join Israel's war against Iran
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm, June 20, 2025, in Tokyo. (AP Photo) MANILA--Crude oil prices rose and Asian shares were trading mixed on Friday as investors awaited more clarity on whether or not the U.S. will join Israel's war against Iran. U.S. futures edged lower after Wall Street was closed on Thursday for the Juneteenth holiday. U.S. benchmark crude oil added 15 cents to $73.65 per barrel, while Brent crude, the international standard was up 19 cents at $76.89 per barrel. Oil prices have been gyrating as fears rise and ebb that the conflict between Israel and Iran could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Investors remained wary after the White House said President Donald Trump could decide on whether to launch an attack on Israel within the next two weeks, but that he 'still believes diplomacy is an option,' said Anderson Alves, a trader at ActivTrades. Trump's tariffs agenda remains another major factor weighing on markets. Tokyo's Nikkei 225 index edged 0.1% higher to 38,538.14 after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba's government and the central bank. 'Core Japanese inflation rose more than expected in May. Even so, the Bank of Japan is likely to prioritize the negative impact of U.S. tariffs, Min Joo Kang of ING Economics said in a commentary. 'For now, it's more concerned about the risk that US trade policies could break the virtuous circle of wage growth and inflation.' Hong Kong's Hang Seng index jumped 1.2% to 23,504.59, while the Shanghai Composite gained 0.1%, reversing earlier losses, to 3,364.83. China's central bank kept its key 1-year and 5-year loan prime rates unchanged, as expected. Australia's S&P/ASX 200 shed 0.3% to 8,500.40 while South Korea's Kospi gained 1.2% to 3,014.05. 'Risk sentiments were cautious as Iran-Israel tensions continued roiling,' Mizuho Bank Ltd. said in a commentary. On Thursday, the Bank of England kept its main interest rate at a two-year low of 4.25%, citing risks that the conflict between Israel and Iran will escalate. The U.S. dollar slipped to 145.28 Japanese yen from 145.46 yen. The euro rose to $1.1530 from $1.1498.
Business Recorder
3 hours ago
- Business
- Business Recorder
Dollar set to finish week on upbeat note buoyed by safe-haven appeal
The dollar was set to log its biggest weekly rise in over a month on Friday, as uncertainties about a raging war in the Middle East and the repercussions it could have on the global economy fuelled an appetite for traditional safe havens. The dollar index comparing the U.S. currency against six others is poised for a 0.5% climb this week. The conflict between Israel and Iran shows no signs of subsiding and market participants are nervous about potential U.S. intervention in the region. The two countries have been in a week-long air battle as Tel Aviv seeks to thwart Tehran's nuclear ambitions and cripple the domestic government. The White House said US President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war. The resultant recent spike in oil prices added a new layer of inflation uncertainty for central banks across regions which have been grappling with the potential repercussions of U.S. tariffs on their economies. 'Rising oil prices introduce inflation uncertainty at a time when growth is weakening,' said Charu Chanana, chief investment strategist at Saxo. 'That makes central banks' jobs much harder — do they ease to support growth or hold back to avoid fueling inflation? Most seem to be prioritizing growth concerns for now, assuming that crude gains may not be sustained.' Dollar lower as ME conflict continues In early Asia trading, the euro inched up 0.16% to $1.151, while the dollar weakened against the yen by 0.17% to 145.23 per dollar. Also underpinning the yen's gains was hotter-than-expected inflation data that kept expectations for upcoming interest rate hikes alive. Furthermore, minutes from the Bank of Japan's policy meet this week showed policymakers agreed on the need to keep raising rates that are still at very low levels. The Swiss franc was flat at 0.816 per dollar on Friday but was set for its largest weekly drop since mid-April after the country's central bank lowered borrowing costs. Swiss rates now stand at 0%. Currencies positively correlated to risk sentiment such as the Australian and New Zealand dollars were steady, while sterling was little changed at $1.34. Although the Federal Reserve earlier this week stuck with its forecast of two interest rate cuts this year, Chair Jerome Powell cautioned against giving that view too much weight. Analysts saw the central bank's delivery as a 'hawkish tilt' further underpinning the greenback's gains this week. Investors were, however, taken aback by an unexpected 25 basis point interest rate cut by Norges bank and the krone is down by more than 1% against the dollar this week. Though geopolitical tensions were the main market focus this week, concerns about tariffs and the impact they may have on costs, corporate margins and overall growth are ever-present. These concerns have weighed on the dollar, which is down about 9% this year. Trump's early July tariff deadline looms and sources said that European officials are increasingly resigned to a 10% rate on 'reciprocal' tariffs being the baseline in any trade deal between the U.S. and the EU. Elsewhere, the offshore yuan was little changed at 7.185 after China kept benchmark lending rates unchanged as expected.
Mint
3 hours ago
- Business
- Mint
Asian shares mixed, oil gains as world waits to see if US will join Israels war against Iran
Manila (Philippines), Jun 20 (AP) Crude oil prices rose and Asian shares were trading mixed on Friday as investors awaited more clarity on whether or not the US will join Israel's war against Iran. US futures edged lower after Wall Street was closed on Thursday for the Juneteenth holiday. US benchmark crude oil added 15 cents to USD 73.65 per barrel, while Brent crude, the international standard was up 19 cents at USD 76.89 per barrel. Oil prices have been gyrating as fears rise and ebb that the conflict between Israel and Iran could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Investors remained wary after the White House said President Donald Trump could decide on whether to launch an attack on Israel within the next two weeks, but that he 'still believes diplomacy is an option,' said Anderson Alves, a trader at ActivTrades. Trump's tariffs agenda remains another major factor weighing on markets. Tokyo's Nikkei 225 index edged 0.1 per cent higher to 38,538.14 after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7 per cent in May, adding to challenges for Prime Minister Shigeru Ishiba's government and the central bank. 'Core Japanese inflation rose more than expected in May. Even so, the Bank of Japan is likely to prioritize the negative impact of US tariffs, Min Joo Kang of ING Economics said in a commentary. 'For now, it's more concerned about the risk that US trade policies could break the virtuous circle of wage growth and inflation." Hong Kong's Hang Seng index jumped 1.2 per cent to 23,504.59, while the Shanghai Composite gained 0.1 per cent, reversing earlier losses, to 3,364.83. China's central bank kept its key 1-year and 5-year loan prime rates unchanged, as expected. Australia's S and P/ASX 200 shed 0.3 per cent to 8,500.40 while South Korea's Kospi gained 1.2 per cent to 3,014.05. 'Risk sentiments were cautious as Iran-Israel tensions continued roiling,' Mizuho Bank Ltd. said in a commentary. On Thursday, the Bank of England kept its main interest rate at a two-year low of 4.25 per cent, citing risks that the conflict between Israel and Iran will escalate. The US dollar slipped to 145.28 Japanese yen from 145.46 yen. The euro rose to USD 1.1530 from USD 1.1498. (AP) PY PY
4 hours ago
- Business
Asian shares are mixed and oil gains as world waits to see if US will join Israel's war against Iran
MANILA, Philippines -- Crude oil prices rose and Asian shares were trading mixed on Friday as investors awaited more clarity on whether or not the U.S. will join Israel's war against Iran. U.S. futures edged lower after Wall Street was closed on Thursday for the Juneteenth holiday. U.S. benchmark crude oil added 15 cents to $73.65 per barrel, while Brent crude, the international standard was up 19 cents at $76.89 per barrel. Oil prices have been gyrating as fears rise and ebb that the conflict between Israel and Iran could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Investors remained wary after the White House said President Donald Trump could decide on whether to launch an attack on Israel within the next two weeks, but that he 'still believes diplomacy is an option,' said Anderson Alves, a trader at ActivTrades. Trump's tariffs agenda remains another major factor weighing on markets. Tokyo's Nikkei 225 index edged 0.1% higher to 38,538.14 after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba's government and the central bank. 'Core Japanese inflation rose more than expected in May. Even so, the Bank of Japan is likely to prioritize the negative impact of U.S. tariffs, Min Joo Kang of ING Economics said in a commentary. 'For now, it's more concerned about the risk that US trade policies could break the virtuous circle of wage growth and inflation." Hong Kong's Hang Seng index jumped 1.2% to 23,504.59, while the Shanghai Composite gained 0.1%, reversing earlier losses, to 3,364.83. China's central bank kept its key 1-year and 5-year loan prime rates unchanged, as expected. Australia's S&P/ASX 200 shed 0.3% to 8,500.40 while South Korea's Kospi gained 1.2% to 3,014.05. 'Risk sentiments were cautious as Iran-Israel tensions continued roiling,' Mizuho Bank Ltd. said in a commentary. On Thursday, the Bank of England kept its main interest rate at a two-year low of 4.25%, citing risks that the conflict between Israel and Iran will escalate. The U.S. dollar slipped to 145.28 Japanese yen from 145.46 yen. The euro rose to $1.1530 from $1.1498.
