Latest news with #Liberal Democratic Party
Yahoo
a day ago
- Business
- Yahoo
Asian shares mostly decline as worries continue over Trump's tariffs
TOKYO (AP) — Asian shares were mostly lower in early Tuesday trading, as worries about President Donald Trump's latest updates to his tariffs weighed on investor sentiments. Japan's benchmark Nikkei 225 rose 0.1% in morning trading to 39,507.28. Australia's S&P/ASX 200 added 0.4% to 8,602.70. South Korea's Kospi edged down 0.2% to 3,195.72. Hong Kong's Hang Seng lost 0.1% to 24,172.79, while the Shanghai Composite dipped nearly 0.9% after the Chinese government reported that growth slowed in the last quarter as Trump's trade war escalated. Tuesday's data showed the economy expanded at a robust 5.2% annual pace, compared with 5.4% annual growth in January-March. In quarterly terms, the world's second-largest economy expanded by 1.1%, according to government data. Despite worries about the damage Trump's tariffs may have on the region's exporters, speculation continues that he may ultimately back down on them. They don't take effect until Aug. 1, which leaves time for more negotiations. On Wall Street Monday, the S&P 500 edged up by 0.1%, the Dow Jones Industrial Average added 0.2% and the Nasdaq composite rose 0.3%. A nationwide election for the upper house of Japan's Parliament, set for Sunday, also added to the wait-and-see attitude among market players. Analysts say the ruling pro-business Liberal Democratic Party may face an uphill battle and will likely need coalition partners, including possibly new ones, to keep its grip on power. If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt American consumers but also raise the pressure on the U.S. government's debt level relative to the economy's size, particularly after Washington approved big tax cuts that will add to the deficit. 'We therefore believe that the administration is using this latest round of tariff escalation to maximize its negotiating leverage and that it will ultimately de-escalate, especially if there is a new bout of heightened bond and stock market volatility,' according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management. 'As usual, there are many conditions and clauses that can get these rates reduced,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'That's probably why the market might not like the tariff talk, but it's not panicking about it either.' For the time being, the uncertainty around tariffs could help keep markets unsteady. This upcoming week has several potential flashpoints that could shake things up. The latest reading on inflation across the U.S. comes Tuesday, with economists expecting it to show inflation accelerated to 2.6% last month from 2.4% in May. Companies are also lining up to report how they performed during the spring. JPMorgan Chase and several other huge banks will report their latest quarterly results Tuesday, followed by Johnson & Johnson on Wednesday and PepsiCo on Thursday. Fastenal, a distributor of industrial and construction supplies, reported Monday a stronger profit for the latest quarter than analysts expected. Its stock rose 2.9%, though it also said that market conditions remain sluggish. Shares of Kenvue rose 2.3% in shaky trading after the former division of Johnson & Johnson said CEO Thibaut Mongon is stepping down. Kenvue, the maker of Listerine and Band-Aid brands, is in the midst of a strategic review of its options, 'including ways to simplify the company's portfolio and how it operates,' according to board chair Larry Merlo. Some of the biggest moves in financial markets were for crypto, where bitcoin continues to set records. This upcoming week is Crypto Week in Washington, where Congress will consider several bills to 'make America the crypto capital of the world.' In energy trading, benchmark U.S. crude fell 31 cents to $66.67 a barrel. Brent crude, the international standard, declined 25 cents to $68.96 a barrel. In currency trading, the U.S. dollar declined to 147.59 Japanese yen from 147.72 yen. The euro cost $1.1676, up from $1.1666. ___ AP Business Writer Stan Choe contributed to this report.
The Independent
a day ago
- Business
- The Independent
Asian shares mostly decline as worries continue over Trump's tariffs
Asian shares were mostly lower in early Tuesday trading, as worries about President Donald Trump's latest updates to his tariffs weighed on investor sentiments. Japan's benchmark Nikkei 225 rose 0.1% in morning trading to 39,507.28. Australia's S&P/ASX 200 added 0.4% to 8,602.70. South Korea's Kospi edged down 0.2% to 3,195.72. Hong Kong's Hang Seng lost 0.1% to 24,172.79, while the Shanghai Composite dipped nearly 0.9% after the Chinese government reported that growth slowed in the last quarter as Trump's trade war escalated. Tuesday's data showed the economy expanded at a robust 5.2% annual pace, compared with 5.4% annual growth in January-March. In quarterly terms, the world's second-largest economy expanded by 1.1%, according to government data. Despite worries about the damage Trump's tariffs may have on the region's exporters, speculation continues that he may ultimately back down on them. They don't take effect until Aug. 1, which leaves time for more negotiations. On Wall Street Monday, the S&P 500 edged up by 0.1%, the Dow Jones Industrial Average added 0.2% and the Nasdaq composite rose 0.3%. A nationwide election for the upper house of Japan's Parliament, set for Sunday, also added to the wait-and-see attitude among market players. Analysts say the ruling pro-business Liberal Democratic Party may face an uphill battle and will likely need coalition partners, including possibly new ones, to keep its grip on power. If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt American consumers but also raise the pressure on the U.S. government's debt level relative to the economy's size, particularly after Washington approved big tax cuts that will add to the deficit. 'We therefore believe that the administration is using this latest round of tariff escalation to maximize its negotiating leverage and that it will ultimately de-escalate, especially if there is a new bout of heightened bond and stock market volatility,' according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management. 'As usual, there are many conditions and clauses that can get these rates reduced,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'That's probably why the market might not like the tariff talk, but it's not panicking about it either.' For the time being, the uncertainty around tariffs could help keep markets unsteady. This upcoming week has several potential flashpoints that could shake things up. The latest reading on inflation across the U.S. comes Tuesday, with economists expecting it to show inflation accelerated to 2.6% last month from 2.4% in May. Companies are also lining up to report how they performed during the spring. JPMorgan Chase and several other huge banks will report their latest quarterly results Tuesday, followed by Johnson & Johnson on Wednesday and PepsiCo on Thursday. Fastenal, a distributor of industrial and construction supplies, reported Monday a stronger profit for the latest quarter than analysts expected. Its stock rose 2.9%, though it also said that market conditions remain sluggish. Shares of Kenvue rose 2.3% in shaky trading after the former division of Johnson & Johnson said CEO Thibaut Mongon is stepping down. Kenvue, the maker of Listerine and Band-Aid brands, is in the midst of a strategic review of its options, 'including ways to simplify the company's portfolio and how it operates,' according to board chair Larry Merlo. Some of the biggest moves in financial markets were for crypto, where bitcoin continues to set records. This upcoming week is Crypto Week in Washington, where Congress will consider several bills to 'make America the crypto capital of the world.' In energy trading, benchmark U.S. crude fell 31 cents to $66.67 a barrel. Brent crude, the international standard, declined 25 cents to $68.96 a barrel. In currency trading, the U.S. dollar declined to 147.59 Japanese yen from 147.72 yen. The euro cost $1.1676, up from $1.1666. ___
Bloomberg
a day ago
- Business
- Bloomberg
Japan's Ruling Parties at Risk of Losing Upper House Majority
Japan's ruling Liberal Democratic Party and its junior coalition partner Komeito are at risk of losing its majority in the upper house in elections this Sunday, potentially weakening Prime Minister Shigeru Ishiba and his minority government's standing further amid ongoing trade negotiations with the US. Compared to polls from earlier in the campaign period, the ruling coalition has lost steam and could miss its target of winning 50 seats in the election, according to multiple polls conducted by local media. Polls by the Asahi newspaper said the LDP looked likely to win some 34 seats, while Komeito looked likely to secure about 9. Kyodo also said that the LDP could struggle to win 40 seats.
Japan Times
2 days ago
- Business
- Japan Times
Upper House election could further hamper BOJ's drive to raise rates
Japan's central bank may face political pressure to keep interest rates low for longer than it wants, as opposition parties favoring tax cuts and loose monetary policy are expected to gain influence after a July 20 election. Opinion surveys suggest Prime Minister Shigeru Ishiba's coalition may lose its majority in the Upper House of parliament, forcing it to court an array of smaller parties pushing for easier fiscal and monetary policy. The governing bloc led by Ishiba's Liberal Democratic Party is already a minority in the more powerful Lower House, so a stalemate in both chambers could give opposition parties outsized influence in policy decisions. Ishiba has supported the Bank of Japan's policy of gradually lifting interest rates from near zero as inflation picks up in the world's fourth-biggest economy, while trying to curb the biggest government debt burden in the industrial world. But if opposition groups gain traction with their pressure on the BOJ to avoid rate hikes and for the government to cut the sales tax, that could boost bond yields and complicate the bank's efforts to normalize monetary policy, some analysts say. The BOJ declined to comment on the potential impact of the election on monetary policy. "There's a 50% chance the ruling coalition could lose its majority in the Upper House, which could lead to increased debate about cutting Japan's consumption tax rate," said Daiju Aoki, chief Japan economist at UBS SuMi Trust Wealth Management. "That would push up Japan's long-term interest rates by stoking concern over the country's finances," he said. Sohei Kamiya, head of the upstart right-leaning party Sanseito, has criticized the BOJ for slowing its bond buying when the economy remains weak. "The Finance Ministry and BOJ should work hand in hand in taking aggressive steps for a few years to boost domestic demand," Kamiya told a news conference this month. Another opposition party, Nippon Ishin no Kai, wants the BOJ to go slow in raising rates to restrain the cost of interest on the government's debt. Yuichiro Tamaki, head of the Democratic Party for the People, a party seen as a strong candidate to join Ishiba's coalition, has urged the BOJ to loosen, not tighten, monetary policy to keep the yen from rising and hurting the export-reliant economy. Even if the coalition keeps its majority, Ishiba may need to ditch his hawkish fiscal tilt and boost spending to cushion the economic blow from threatened U.S. tariffs and rising costs of living. "There's a good chance the government will compile an extra budget to fund another spending package to the tune of ¥5 trillion to ¥10 trillion ($35 billion to $70 billion). That would push up bond yields further," said former BOJ board member Makoto Sakurai, who expects the central bank to avoid raising rates at least until March. Japan's public debt is equal to 250% of gross domestic product, far above that of Greece at 165%. The government spends nearly a quarter of its budget to finance a ¥1,164 trillion debt pile, with the cost expected to rise steadily as the BOJ exits zero-interest rates. To be sure, inflation — above the BOJ's 2% target for three years — boosts nominal tax revenues, which can help the government avoid ramping up bond issuance to fund further spending. But cutting the consumption tax rate, an idea Ishiba has ruled out for now, would leave a bigger hole in Japan's finances. Once a fringe idea, cutting the 10% sales tax is now among Japan's most popular economic policy proposals. In a recent poll by the Asahi Shimbun 68% of voters thought a sales tax cut was the best way to cushion the blow from rising living costs, compared with 18% who preferred cash payouts. If the sales tax is on the chopping block after the election, it is the kind of vital issue that could prod Ishiba to dissolve the Lower House and call a snap election — a move that would prolong political uncertainty. If Ishiba were to step down, an LDP race to replace him could revive market attention to candidates like Sanae Takaichi, an advocate of aggressive monetary easing whom Ishiba narrowly beat in the party's leadership race last year. Unlike Ishiba, who gave a quiet nod to BOJ policy normalization, Takaichi has said it would be "stupid" for the central bank to raise rates. All this would mean the BOJ's rate hikes, already on pause due to uncertainty over U.S. tariffs, could be put on hold even longer. "We may need to brace for a long period of political uncertainty and market volatility," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities. "That would just give the BOJ another reason to sit on the sidelines and wait for the dust to settle."
Japan Times
5 days ago
- Business
- Japan Times
Japan-China beef trade thought to have been on agenda for talks
Liberal Democratic Party executive Hiroshi Moriyama and visiting Chinese Vice Premier He Lifeng held talks in Osaka on Friday, apparently focusing on beef trade. Moriyama, secretary-general of the LDP and also head of a suprapartisan group of Japanese lawmakers promoting Japan-China friendship, is believed to have been briefed on the possible enforcement of an animal health and quarantine agreement necessary for China's resumption of beef imports from Japan. The Japanese side hopes to advance final adjustment to restart beef exports to China. China has had a ban on Japanese beef imports since the outbreak of mad cow disease, formally called bovine spongiform encephalopathy, or BSE, in Japan in 2001. The Japanese and Chinese governments signed the animal health and quarantine agreement in 2019, but the Chinese side's procedures to put it into effect have been suspended. At a meeting in Peru in November last year, Prime Minister Shigeru Ishiba asked Chinese President Xi Jinping to resume imports. Foreign Minister Takeshi Iwaya and his Chinese counterpart, Wang Yi, exchanged opinions on the effectuation of the agreement at their meeting in Malaysia on Thursday. The Chinese vice premier is visiting Japan for China's "national day" event on Friday for the Osaka Expo. Moriyama apparently asked He for a new loan of giant pandas to Japan from China. Currently, there are only two giant pandas in Japan — both at Tokyo's Ueno Zoo — after four at the Adventure World amusement facility in Wakayama Prefecture, western Japan, were returned to China late last month.
