Japanese Chief Cabinet Secretary Minoru Kihara said on Monday there were no plans for a fresh release of crude oil from national reserves as the country had already released supplies.
The artificial intelligence (AI) and semiconductor trades are garnering plenty of limelight this year and when investors evaluate those themes relating to ex-US equities, their attention largely shifts to China, South Korea and Taiwan. However, there's another Asia-Pacific dynamo on the AI front, and it's a familiar one: Japan.
The Nikkei 225 Index continued its strong downward spiral, reaching its lowest level since August 5 this year, and 11.80% from its highest point this year. This retreat happened as the US-Iran tensions and Japan's bond yields continued the bull run.
The recent coordinated effort by U.S. and Japanese monetary authorities to prop up the sagging yen understandably rattled global markets. While critics claim that the positive effects of the US/Japan “salvation” effort were short-lived, Japanese equities aren't worse for wear.
The overnight index swaps market is pricing in nearly a 90% chance of a rate increase at the upcoming Bank of Japan meeting.
A weakening yen has helped to boost the country's exports. Japan's dependence on foreign oil remains a risk, however.
Takaichi's food tax cut and cash aid could reshape Japan's economy, with consumer-focused sectors and Japanese ETFs drawing investor attention.
The Nikkei 225 Index retreated by over 1.52% on Monday as investors reacted to several events, including the Japanese yen rescue and the upcoming corporate earnings. It dropped to 63,390, down by 12.9% from its peak this year.
The decision comes as speculation continues to swirl around whether the Bank of Japan will hike rates at a faster pace.
Asian stocks were mixed on Thursday as investors assessed the fallout from the AI sell-off, the Federal Reserve's rate outlook and renewed tensions in the Middle East. The MSCI Asia-Pacific gauge excluding Japan was little changed after swinging between gains and losses.
The Nikkei 225 Index tilted upwards on Monday, even as top technology stocks declined. It rose by 27 basis points to 64,780, up a bit from this month's low of 62,646.
Japanese stocks were higher as fears about a further escalation of the Iran conflict ease for now.