Latest news with #HirofumiSuzuki
CNBC
08-07-2025
- Business
- CNBC
Tariffs, declining real wages, slowing growth: Japan's central bank has its work cut out
The Bank of Japan faces a stiff challenge as it strives to normalize its monetary policy at a time when growth has been slowing, while steep U.S. tariffs further threaten the country's exports-driven economy. Declining real wages have compounded the BOJ's troubles. Real wages dropped at their fastest pace in 20 months in May, pressuring the central bank to raise rates and rein in inflation. Data from the country's ministry of health, labor and welfare shows that real wages dropped 2.9% compared to the year before, sharper than the revised 2% fall in April and also marking their fifth straight month of decline. The wage data highlights that inflation is taking a substantial bite out of incomes in Japan, despite sharp salary hikes. Japan's unions secured the highest wage increase since 1991 in this year's spring wage negotiations, with the Japanese Trade Union Confederation, or Rengo, saying last week that its members had received a headline pay bump of 5.25% for the year starting April. However, inflation has continued to run above the Bank of Japan's 2% target for more than three years, with the most recent reading coming in at 3.5%, diluting the net impact of wage hikes. Government data shows that while nominal wages have risen every month since December 2021, real wages have fallen year on year for more than 30 of the 41 months since. The BOJ has long stated that a "virtuous cycle" where higher salaries fuel growth in prices was needed for it to raise rates, but an economic slowdown appears to be constraining the bank's ability to tighten policy. Japan's economy also shrunk for the first time in a year in the first quarter, contracting 0.2% quarter on quarter as exports declined, hitting the trade-dependent economy. Should the BOJ raise rates to curb inflation, or should it continue to hold rates steady to support growth in the Japanese economy in a time of tariff uncertainty? Analysts have mixed views on the BOJ's path forward. Hirofumi Suzuki, Chief FX Strategist at Sumitomo Mitsui Banking Corporation, told CNBC that while's May's decline is "largely temporary," real wages are struggling to grow overall, which could dampen economic expansion as consumption slows. However, he said this slowdown in real wage growth suggests that the strength of the BOJ's "virtuous cycle" is not as robust as expected, and could be a factor in delaying rate hikes. In contrast, Jesper Koll, expert director at Tokyo-based financial services firm Monex Group said inflation rising faster than wages will strengthen BOJ Governor Kazuo Ueda's commitment to hike Japan's policy rate, which will almost immediately boost purchasing power for the man on the street by way of a stronger yen. This is because one-third of the Japan's consumer price index is directly linked to import prices, he said, and a stronger yen will reduce imported inflation. Vishnu Varathan, managing director at Mizuho Securities puts it simply: "The optimal game-plan for the BOJ may be to do nothing. Sitting on its hands to affirm the tightening bias (albeit much further out) as it rides out tariffs uncertainties." The U.S. has threatened to impose 25% tariffs on Japanese imports from Aug 1. Varathan said that the BOJ ought to arguably step back, and not step in: the BOJ probably has no scope for further hikes, due to fears of crimping domestic demand.
Malaysian Reserve
13-06-2025
- Business
- Malaysian Reserve
Mitsubishi Research Institute and Astellas Announce Collaboration to Support Pharma Startups in Japan
Accelerating the Growth of Globally Active Drug-Discovery Startups from Japan TOKYO, June 13, 2025 /PRNewswire/ — Mitsubishi Research Institute, Inc. ('MRI') and Astellas Pharma Inc. ('Astellas') today announced that they have agreed on a memorandum of understanding to provide drug-discovery startups in Japan with support in their efforts to go global. The pair aims to strengthen Japan's position as a global hub for drug discovery and foster the growth of its startups that can thrive globally. The new support represents multiple programs under the Ministry of Health, Labour and Welfare's Medical Innovation Support Office (MEDISO), which looks to address the lack of practical application of Japan's advanced life-sciences technologies. Mitsubishi Research Institute has been entrusted to operate MEDISO since 2018 and has been helping promising drug-discovery startups commercialize their intellectual property since. 'When it comes to practical application, drug-discovery startups need external insights and expertise,' said Hirofumi Suzuki, Executive Officer and General Manager of the Public Innovation Unit at Mitsubishi Research Institute. 'Promising startups can substantially speed up the commercialization of their offerings by engaging with globally active pharmaceutical companies early.' The new partnership looks to leverage the strengths of both companies. MRI will draw from its previous MEDISO work—supporting over twelve hundred startup and academic ventures—and design specific support programs for participants. Astellas Pharma will provide drug-discovery startups participating in the acceleration program conducted through MEDISO with access to laboratory and office space at SakuLab™-Tsukuba, located on the premises of the Astellas Tsukuba Research Center. Startups residing in SakuLab™-Tsukuba will not only receive support through consultations with Astellas experts in various fields, but will also be able to accelerate their drug discovery research by leveraging networks with fellow residents and Astellas researchers. 'We are very pleased to agree on a memorandum of understanding with MRI. Astellas Pharma is committed to growing and developing innovative ideas and technologies with academia and startups by providing knowledge and experience gained through research and our global network,' said Tadaaki Taniguchi, M.D., Ph.D., Chief Research & Development Officer (CRDO) of Astellas Pharma. 'We expect that the signing of this MoU will further strengthen and accelerate drug discovery research by Japanese startups, ultimately leading to the creation of innovative medical solutions.' The new support will provide Japanese drug-discovery startups with early access to pharmaceutical-industry insights, enabling them to chart a path toward successful global development and potential out-licensing. This aligns with the Basic Policy on Economic and Fiscal Management and Reform 2024, which aims to improve domestic research and development environments while encouraging the participation of global pharmaceutical companies and venture capitalists in building a robust drug discovery ecosystem. 'We are pleased to partner with Astellas Pharma to support startups under the MEDISO initiative, and we are sure that this will be a groundbreaking step for Japan's drug discovery ecosystem,' said Suzuki. 'We are committed to leveraging the strengths of both companies to swiftly deliver innovative pharmaceuticals to patients in Japan and globally.' Moving forward, MEDISO as a whole aims to collaborate with domestic and international business partners to support the global expansion of Japanese drug- discovery startups while encouraging global investors to invest in Japan's burgeoning drug discovery field. About Mitsubishi Research Institute, Research Institute is one of Japan's foremost think tanks. For over five decades, it has provided the public and private sectors with research and consulting services in fields spanning healthcare, the environment, energy, and digital transformation. This is accompanied by policy recommendations and the real-world application of solutions. Mitsubishi Research Institute will continue to envision the future, resolve societal issues, and lead change to build a sustainable and prosperous world. For more information, please visit: About Astellas Pharma is a global life sciences company committed to turning innovative science into VALUE for patients. We provide transformative therapies in disease areas that include oncology, ophthalmology, urology, immunology and women's health. Through our research and development programs, we are pioneering new healthcare solutions for diseases with high unmet medical need. Learn more at
Yahoo
13-06-2025
- Business
- Yahoo
Mitsubishi Research Institute and Astellas Announce Collaboration to Support Pharma Startups in Japan
Accelerating the Growth of Globally Active Drug-Discovery Startups from Japan TOKYO, June 13, 2025 /PRNewswire/ -- Mitsubishi Research Institute, Inc. ("MRI") and Astellas Pharma Inc. ("Astellas") today announced that they have agreed on a memorandum of understanding to provide drug-discovery startups in Japan with support in their efforts to go global. The pair aims to strengthen Japan's position as a global hub for drug discovery and foster the growth of its startups that can thrive globally. The new support represents multiple programs under the Ministry of Health, Labour and Welfare's Medical Innovation Support Office (MEDISO), which looks to address the lack of practical application of Japan's advanced life-sciences technologies. Mitsubishi Research Institute has been entrusted to operate MEDISO since 2018 and has been helping promising drug-discovery startups commercialize their intellectual property since. "When it comes to practical application, drug-discovery startups need external insights and expertise," said Hirofumi Suzuki, Executive Officer and General Manager of the Public Innovation Unit at Mitsubishi Research Institute. "Promising startups can substantially speed up the commercialization of their offerings by engaging with globally active pharmaceutical companies early." The new partnership looks to leverage the strengths of both companies. MRI will draw from its previous MEDISO work—supporting over twelve hundred startup and academic ventures—and design specific support programs for participants. Astellas Pharma will provide drug-discovery startups participating in the acceleration program conducted through MEDISO with access to laboratory and office space at SakuLab™-Tsukuba, located on the premises of the Astellas Tsukuba Research Center. Startups residing in SakuLab™-Tsukuba will not only receive support through consultations with Astellas experts in various fields, but will also be able to accelerate their drug discovery research by leveraging networks with fellow residents and Astellas researchers. "We are very pleased to agree on a memorandum of understanding with MRI. Astellas Pharma is committed to growing and developing innovative ideas and technologies with academia and startups by providing knowledge and experience gained through research and our global network," said Tadaaki Taniguchi, M.D., Ph.D., Chief Research & Development Officer (CRDO) of Astellas Pharma. "We expect that the signing of this MoU will further strengthen and accelerate drug discovery research by Japanese startups, ultimately leading to the creation of innovative medical solutions." The new support will provide Japanese drug-discovery startups with early access to pharmaceutical-industry insights, enabling them to chart a path toward successful global development and potential out-licensing. This aligns with the Basic Policy on Economic and Fiscal Management and Reform 2024, which aims to improve domestic research and development environments while encouraging the participation of global pharmaceutical companies and venture capitalists in building a robust drug discovery ecosystem. "We are pleased to partner with Astellas Pharma to support startups under the MEDISO initiative, and we are sure that this will be a groundbreaking step for Japan's drug discovery ecosystem," said Suzuki. "We are committed to leveraging the strengths of both companies to swiftly deliver innovative pharmaceuticals to patients in Japan and globally." Moving forward, MEDISO as a whole aims to collaborate with domestic and international business partners to support the global expansion of Japanese drug- discovery startups while encouraging global investors to invest in Japan's burgeoning drug discovery field. About Mitsubishi Research Institute, Research Institute is one of Japan's foremost think tanks. For over five decades, it has provided the public and private sectors with research and consulting services in fields spanning healthcare, the environment, energy, and digital transformation. This is accompanied by policy recommendations and the real-world application of solutions. Mitsubishi Research Institute will continue to envision the future, resolve societal issues, and lead change to build a sustainable and prosperous world. For more information, please visit: About Astellas Pharma is a global life sciences company committed to turning innovative science into VALUE for patients. We provide transformative therapies in disease areas that include oncology, ophthalmology, urology, immunology and women's health. Through our research and development programs, we are pioneering new healthcare solutions for diseases with high unmet medical need. Learn more at View original content to download multimedia: SOURCE Astellas Pharma Inc. 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
Asahi Shimbun
20-05-2025
- Business
- Asahi Shimbun
World stocks inch higher, Japanese super-long bond prices tumble
SINGAPORE/LONDON--World stocks rose on Tuesday and Treasury yields steadied, allowing a bit of a breathing room for the U.S. dollar as investors took stock of the debt load of the world's biggest economy. Investors were still processing Monday's market moves when Treasuries initially sold off sharply on worries about the U.S. fiscal position, and stocks struggled on Wall Street, before both rebounded in late trading. That calm was maintained in Asian and European trading, where broad equity indices were each up around 0.1% and Germany's Dax hit a new record high, though S&P 500 share futures dipped. Moody's late on Friday downgraded the U.S. credit rating, underscoring worries about the impact of a major tax cutting bill proceeding through Congress, which faces a crucial vote later this week. The U.S. 10-year yield was last down 3 basis points at 4.44% having hit a one-month high of 4.56% on Monday, and the 30-year bond yield fell a similar amount to 4.91% after hitting an 18-month high of 5.037% in the previous session. 'The quick recovery was a bit of a surprise even though we were in the camp of it only having a limited impact,' said Mohit Kumar, chief Europe economist at Jefferies. He said the downgrade was not unexpected given concerns over U.S. debt and deficits. However, in a sign of broader market nervousness, Japanese super-long bond yields soared to all-time highs on Tuesday, with the immediate precipitating factor a poor auction of 20-year securities. The Japanese 20-year yield jumped as much as 15 bps to 2.555% its highest since 2000, and the 30-year yield hit a record high of 3.14%. JGBs are no exception to the global trend of rising yields, said Hirofumi Suzuki, chief currency strategist at Sumitomo Mitsui Banking Corp. 'Market participants are ... assessing demand during each auction, and stability remains elusive. I think that the upward pressure is likely to persist for the time being.' UNEASY RBA Global investors had a few other things to process too on Tuesday, and the Australian dollar slipped 0.5% to $0.64255 after the Reserve Bank of Australia lowered interest rates as expected, citing a darker global outlook, though it also remained cautious on further easing. 'With the RBA sounding increasingly uneasy, the path of least resistance for the currency may remain lower,' said Charu Chanana, chief investment strategist at Saxo in Singapore. 'Especially if domestic data softens further or global risks flare up again.' China's blue-chip index climbed 0.6% after its central bank cut benchmark lending rates for the first time since October. Also in the spotlight was a strong Hong Kong market debut from CATL, as the Tesla battery supplier started 12.5% higher. The firm raised $4.6 billion in its Hong Kong listing, the largest in the world this year. Back in currency markets, the euro was up 0.2% at $1.1265, holding onto Monday's 0.6% gain, and the dollar was also down 0.38% against the Japanese yen at 144.27, again after sliding Monday. In commodities, oil prices nudged higher as investors tried to get a grip on a potential breakdown in talks between the U.S. and Iran over Tehran's nuclear activity and weakened prospects of more Iranian crude supply entering the market. Brent futures were last up 0.34% to $65.75 a barrel. Gold slipped 0.2% to $3,220 per ounce as safe haven demand dipped.
Zawya
19-03-2025
- Business
- Zawya
Yen choppy after BOJ holds, dollar dithers ahead of Fed outcome
SINGAPORE- The yen swung between losses and gains on Wednesday after the Bank of Japan (BOJ) kept interest rates unchanged as widely expected, while the dollar struggled to regain some lost ground ahead of the Federal Reserve's policy decision later in the day. The BOJ on Wednesday maintained its short-term interest rate target at 0.5%, underscoring policymakers' preference to spend more time gauging how mounting global economic risks from higher U.S. tariffs could affect Japan's fragile recovery. The yen fell in the immediate aftermath of the decision, though moves in the currency became slightly more volatile shortly after. The yen was last little changed at 149.31 per dollar. "The decision to leave monetary policy unchanged itself is not a surprise, so its impact on exchange rates is limited. However, the earlier-than-usual timing of the announcement seems to have led financial markets to initially interpret that the BOJ (did not consider) bringing forward a rate hike," said Hirofumi Suzuki, chief FX strategist at SMBC. Focus now turns to Governor Kazuo Ueda's post-meeting briefing later in the day for clues on how soon the bank could next raise rates. In the broader market, currency moves were largely subdued as traders were hesitant to take on fresh positions ahead of the conclusion of the Fed's March policy meeting later on Wednesday. Overnight, Israeli airstrikes pounded Gaza and killed more than 400 people, U.S. President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire and Germany's outgoing parliament approved plans for a massive spending surge. The euro did scale a five-month high of $1.0955 in the previous session and last traded near that level at $1.0942. Investors were optimistic the move in Germany could revive economic growth and scale up military spending for a new era of European collective defence. "This is a historic fiscal regime shift, arguably the largest since German reunification," said Robin Winkler, chief German economist at Deutsche Bank Research. "Yet, as with reunification, a fiscal expansion does not guarantee success: the next government will need to deliver structural reforms to turn this fiscal package into sustainable growth." Sterling last bought $1.3001, standing just a whisker away from its four-month high of $1.3010 hit in the previous session. The Australian dollar ticked up 0.07% to $0.6365 after falling 0.4% overnight as risk appetite stayed cautious, while the New Zealand dollar slipped 0.05% to $0.5818. Against a basket of currencies, the dollar was little changed at 103.27, languishing near Tuesday's five-month low of 103.19. The dollar has fallen nearly 4% for the month, pressured by Trump's erratic tariff moves and as fears of a recession in the world's largest economy mount. The Fed's policy decision later on Wednesday will be crucial for investors eager to know what the central bank makes of Trump's policies and their impact on the U.S. economy, and how that would translate to the rate outlook. Fed policymakers are widely expected to keep rates on hold, and will also release new economic projections at the conclusion of the meeting later in the day. Traders are currently pricing in nearly 60 basis points of Fed rate cuts by the year end. "The March FOMC meeting will likely be all about policy uncertainty. The Fed will almost certainly stay on hold, emphasising patience over panic," said analysts at Bank of America Securities. "The (Summary of Economic Projections) forecasts and distribution of risks are both likely to reflect stagflation: weaker growth and higher inflation."
