Latest news with #Japan
Malay Mail
19 minutes ago
- Business
- Malay Mail
Rice crisis fuels voter rage as Japan's core inflation hits 3.7pc
TOKYO, June 20 — Japan's core inflation rate accelerated to 3.7 per cent in May, official data showed today, posing a threat to Prime Minister Shigeru Ishiba's leadership ahead of July elections. Rice prices were more than twice as high compared to 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. Today's data, which excludes volatile fresh food prices, beat market expectations and was up from the 3.5 per cent 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 per cent more expensive, and gas fees rose 5.4 per cent. Ishiba has pledged cash handouts of ¥20,000 (RM585) 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 per cent in May, compared to the eye-watering 98 per cent 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. — AFP
Yahoo
24 minutes ago
- Business
- Yahoo
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
(Bloomberg) -- Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago. 'The worst of the shock is behind us with Liberation Day,' said Efstathopoulos, referring to the April 2 US tariff announcement that triggered a global equity rout. 'The numbers that were recorded on that day were the worst it can get.' Fidelity is maintaining its conviction even as investors gear up for the end of the 90-day tariff truce on July 8, when reciprocal levies will take effect if nations fail to reach a trade deal with the US. Tensions in the Middle East may also pose a major test for stock markets, with Trump to decide within two weeks whether to strike Iran as the conflict with Israel escalates. For now, many of Efstathopoulos' bets have paid off, and he's convinced they remain a buy. The MSCI Japan Mid Cap Index has gained more than 4% since April 2, while Germany's DAX Mid-Cap gauge has risen almost 6%. A similar index of Chinese stocks advanced about 0.5% during that period. The money manager has had some exposure to Chinese and Japanese stocks since the second half of last year, while it scooped up German midcaps in March shortly after the government announced a historic spending package. 'In a world of trade disruption, disruption of globalization, I think it makes sense to focus on more domestic revenue generation,' said Efstathopoulos, who oversees about $3 billion from Singapore. German equities should advance because they're poised to benefit from a landmark shift toward more fiscal spending and concentrated exposure to domestic demand, he said. Meanwhile, Japan is undergoing a once-in-a-generation shift with 'good inflation' rippling across the economy, and mid-sized companies are likely to benefit most from rising domestic consumption, said Efstathopoulos. Fidelity likes Chinese firms due to prospects of further fiscal stimulus and limited risk of losses, thanks in part to factors like state-backed investors swooping into markets to prop up stock prices. Efstathopoulos helps oversee Fidelity's global multi-asset growth and income fund that's returned a cumulative 11% over the past five years to May, according to a company factsheet. RBI's Liquidity Boost to Propel Indian Small Caps: Taking Stock Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
33 minutes ago
- Business
- Bloomberg
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago.
CNA
40 minutes ago
- Business
- CNA
CNA938 Rewind - Done deal between Nippon Steel, US Steel ends 18-month saga
CNA938 Rewind Nippon Steel has closed its US$14.1 billion acquisition of US Steel, bringing an end to a bruising 18-month takeover battle that was embroiled in American politics for months until finally gaining support from US President Donald Trump. Andrea Heng and Susan Ng take a closer look at the terms and implications for the steel industry, and impending tariffs, with Professor Lim Tai Wei, Department of Business Administration, Soka University and Japan expert.
Reuters
an hour ago
- Business
- Reuters
BOJ board agreed to keep rate hike path, some saw need for pause, May minutes show
TOKYO, June 20 (Reuters) - Bank of Japan policymakers agreed on the need to keep raising still-low interest rates, but some saw the need to pause for the time being due to uncertainty over U.S. trade policy, minutes of their April 30-May 1 policy meeting showed on Friday. Some in the nine-member board said the timing for Japan to see underlying inflation converge toward the BOJ's 2% target has been pushed back by around a year, the minutes showed.
