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☆ Factbox: Kazuo Ueda: Who is the new Bank of Japan governor and what can we expect from him?
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +4 min

TOKYO, Feb 10 (Reuters) - Japan's government is likely to appoint Kazuo Ueda, an academic and a former member of the Bank of Japan's policy board, as the next central bank governor, two government officials told Reuters on Friday. The 71-year-old is widely seen as an expert on monetary policy, but is seen as a surprise appointment by analysts. The following are some key questions and answers about the next central bank governor in the world's third-largest economy and the challenges he faces. He is an external director at JGC Holdings Corp (1963.T), an engineering company and at the state-owned Development Bank of Japan. In a 2016 article, Ueda wrote that the BOJ's ultra-easy policy seemed to be "reaching its limits".

☆ Ex-Tokyo Olympics official, ad execs arrested in bid-rigging scandal
▼ + stars: | 2023-02-08 | by ( Kantaro Komiya | ) www.reuters.com time to read: +3 min

TOKYO, Feb 8 (Reuters) - Japanese prosecutors arrested on Wednesday a former Tokyo Olympics organising committee official and executives at three advertising agencies on suspected bid-rigging of test events for the Games, the Tokyo District Public Prosecutors Office said. The media reports later said the prosecutors also arrested three executives at advertising and event-planning firms Dentsu Inc (4324.T), Cerespo Co (9625.T) and Fuji Creative Corporation, a subsidiary of Fuji Media Holdings Inc (4676.T). Dentsu said in a statement that a former employee, who currently works at a group firm in Japan, was arrested. The bid-rigging investigation comes after a bribery scandal, in which Haruyuki Takahashi, a former member of the Tokyo 2020 Olympics board and before that a Dentsu executive, was arrested in August on suspicion of receiving bribes from Olympic sponsors. Executives from ADK, suits retailer Aoki Holdings (8214.T) and publishing firm Kadokawa (9468.T) have also been arrested in connection with the bribery scandal.

The massive buying highlights the increasing difficulty the central bank faces in sustaining its yield control policy, as inflation perks up well above its 2% inflation target. With its heavy-handed intervention drying up bond market liquidity, the BOJ is increasingly relying on a new funds-supply tool to keep the 10-year yield from breaching its 0.50% ceiling. The BOJ's bond buying in January, at 23.69 trillion yen ($182 billion), was the biggest amount on record and exceeded the previous high of 16.2 trillion yen marked in June 2022, central bank data showed. Under yield curve control, the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around 0%. The 10-year bond yield stood at 0.480% on Wednesday, remaining close to the BOJ's 0.5% cap.

☆ Japan Dec factory output inches down, retail sales beat forecasts
▼ + stars: | 2023-01-31 | by ( Kantaro Komiya | ) www.reuters.com time to read: +1 min

Although retail sales, a barometer of service-sector activity and consumer spending, rose more than expected, the faltering factory activity is ill-timed as companies face calls to hike wages to sustain Japan's post-pandemic recovery. read moreIndustrial output fell 0.1% in December from the previous month, government data showed on Tuesday. The drop was less than the median market forecast for a 1.2% decrease and followed upwardly-revised 0.2% growth in November. Output of auto products was up 0.6%, posting first growth in two months. Compared with the previous quarter, factory output fell 3.1% in October-December, the first drop in two quarters.

☆ Japan eyes easing S.Korea export controls as Seoul seeks to improve ties -media
▼ + stars: | 2023-01-28 | by ( Kantaro Komiya | ) www.reuters.com time to read: +2 min

TOKYO, Jan 28 (Reuters) - Japan is considering relaxing controls on exports to South Korea as its president, Yoon Suk-yeol, seeks to improve ties amid a strained East Asian security environment, the Sankei newspaper reported on Saturday. Japan's foreign ministry and trade ministry officials were not immediately available for comment on the report when Reuters contacted them outside regular business hours. "Given the growing need to promote cooperation among countries sharing universal values at a time when the importance of economic security is increasing, we hope that Japan will judge wisely," the South Korean ministry said. Their diplomatic officials are due to meet on Monday in the South Korean capital, Seoul, as they near a conclusion of a plan for the resolving their dispute, Jiji news reported on Friday. Reporting by Kantaro Komiya; Additional reporting by Joyce Lee in Seoul; Editing by William Mallard, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ Japan, Netherlands to join US in restricting chip equipment exports to China-Bloomberg
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +2 min

TOKYO, Jan 27 (Reuters) - Japan and the Netherlands will soon agree to join the United States in restricting exports of semiconductor manufacturing equipment to China, Bloomberg News reported. Japan would impose similar restrictions on Nikon Corp (7731.T), the report said. "We have been in discussion with the United States and other countries regarding the export-control regime," Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, told reporters on Friday. "A balance needs to be struck so no one among Japan, the United States and Europe will be disproportionately disadvantaged. Japan expects sales at affected chip-related companies to rebound quickly because the market for their equipment is expanding, a trade and industry official involved in overseeing semiconductor firms told Reuters.

☆ Japan, Netherlands to join US in China chip controls -Bloomberg
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Jan 27 (Reuters) - Japan and the Netherlands will join the United States in implementing export controls on semiconductor manufacturing equipment to China soon, Bloomberg News reported on Friday. The trilateral talks are set to conclude as early as Friday U.S. time, the report said, citing people familiar with the matter. The Netherlands would expand restrictions on ASML Holding NV (ASML.AS) in a move that would prevent the sale of machines that are crucial to making certain types of advanced chips, Bloomberg reported. Japan would set similar limits on Nikon Corp (7731.T), it said. read moreReporting by Kantaro Komiya Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

☆ Japan, Netherlands to join U.S. in restricting chip equipment exports to China, Bloomberg reports
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +3 min

TOKYO, Jan 27 (Reuters) - Japan and the Netherlands will soon agree to join the United States in restricting exports of semiconductor manufacturing equipment to China, Bloomberg News reported. Japan would impose similar restrictions on Nikon Corp (7731.T), the report said. Deputy Chief Cabinet Secretary Seiji Kihara, a government spokesperson, said Japan would make "appropriate steps" based on the United States' and other nations' regulatory moves. "We have been in discussion with the United States and other countries regarding the export-control regime," Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, told reporters on Friday. "A balance needs to be struck so no one among Japan, the United States and Europe will be disproportionately disadvantaged.

☆ Japan PM says can't rule out return of deflation despite price spike
▼ + stars: | 2023-01-27 | by ( Kantaro Komiya | ) www.reuters.com time to read: +2 min

TOKYO, Jan 27 (Reuters) - Japanese Prime Minister Fumio Kishida said on Friday that a return to deflation in the world's third-largest economy cannot be ruled out, because domestic demand remains weak. But Kishida described the move as an operational tweak to smooth the impact of monetary easing, which is distorting the country's bond markets. Policymakers are hoping that wage increases this spring will cushion higher living costs and boost consumer spending. Kishida on Sunday said he would nominate the next BOJ leader next month before the incumbent Haruhiko Kuroda's second five-year term expires on April 8. Reporting by Kantaro Komiya; Editing by Jacqueline Wong and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

☆ Japan tightens Russia sanctions after deadly missile strikes in Ukraine
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Jan 27 (Reuters) - Japan tightened sanctions against Russia on Friday following its latest wave of missile attacks in Ukraine, adding goods to an export ban list and freezing the assets of Russian officials and entities. The decision comes after Russia launched missile attacks in Ukraine killing at least 11 people on Thursday following a pledge by Germany and the United States to supply tanks that could help Ukraine counter any new Russian offensive. Among the new sanctions, Japan will prohibit shipments of items to 49 organizations in Russia from Feb. 3 that could be used to enhance its military capability. Those will include products ranging from water cannons, gas exploration equipment and semiconductor equipment to vaccines, X-ray inspection equipment, explosives and robots, the ministry said. Reporting by Kantaro Komiya and Tim Kelly Editing by Chang-Ran Kim, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

For the last three years, the 66-year-old has built up the "Toyota Times", hiring Japanese journalists and ramping up coverage of the company to counter what he sees as persistent misinformation and unfair criticism. "What I find unfortunate is that the media often thrives on conflict, setting BEVs against hybrids, for example," Toyoda said on the Toyota Times recently. After almost an hour of scripted presentations and banter, the Toyota Times host turned to questions from reporters. Toyoda has increasingly appeared to eschew traditional media as the company fell out of favour with environmentalists who once lauded its green technology. The Toyota Times also exclusively publishes the closely watched results of the company's spring wage negotiations with its union.

☆ Japan's factory activity extends declines for third straight month - PMI
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +2 min

TOKYO, Jan 24 (Reuters) - Japan's manufacturing activity contracted for a third straight month in January as export weakness persisted amid a worsening global outlook, a corporate survey showed on Tuesday. The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) was at a seasonally adjusted 48.9 in January, unchanged from the final reading in the previous month. Factory output and new orders decreased for a seventh consecutive month, although at slower paces than last month, the sub-index data showed. The au Jibun Bank flash services PMI rose to a seasonally adjusted 52.4 in January from the previous month's 51.1 final, hitting a three-month high. Overall, the au Jibun Bank Flash Japan composite PMI rose to 50.8 in January, up from last month's final 49.7 and emerging above the break-even 50 line for the first time in three months.

☆ Slumping China-bound Japanese exports raise fears of global downturn
▼ + stars: | 2023-01-19 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

Exports to largest trading partner China fell 6.2% year-on-year in value and were down 24% in volume terms in December. Exports to the United States in December rose 16.9% from a year ago, led by cars, mining equipment and aero-engine parts. In the worst case, it may deal a blow to Japanese exports, which could in turn hit Japan's factory output and capital expenditure," said Atsushi Takeda, chief economist at ITOCHU Research Institute. "Trade deficits will stay at high levels even as import growth slows with oil prices falling and weak yen running its course. That's because exports remain weak due to lacklustre global demand," said Taro Saito, executive research fellow at NLI Research Institute.

"This step will allow us to push down longer-term interest rates, without directly affecting supply and demand of the cash Japanese government bond (JGB) market," Kuroda told a news conference. Following its two-day policy meeting, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. Reuters Graphics Reuters GraphicsThe central bank also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target. "By showing its resolve to use market tools more flexibly, the BOJ wanted to signal to markets it won't make big monetary policy changes under Kuroda." Market attention is already shifting toward monetary policy under Kuroda's successor, who will need to steer an orderly exit from decades of ultra-low rates.

The surprise decision sent the yen skidding against other currencies and bond yields tumbling the most in decades, as investors unwound bets they made anticipating the central bank would overhaul its yield control policy. At a two-day policy meeting, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. The central bank also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target. Underscoring its resolve to keep defending the cap, the BOJ beefed up a key market operation tool to more effectively curb rises in long-term interest rates. "By showing its resolve to use market tools more flexibly, the BOJ wanted to signal to markets it won't make big monetary policy changes under Kuroda."

☆ Bank of Japan keeps yield control policy unchanged
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +7 min

MARKET REACTION:The Japanese stock market cheered the BOJ's decision with the Nikkei share average (.N225) jumping more than 2% after the midday break. Therefore, among equities, we think Japanese financials sector will have a rerating of valuations over the next 3-6 months." That could escalate when the new governor of the bank will be announced and towards the policy meeting in March." MOH SIONG SIM, CURRENCY STRATEGIST, BANK OF SINGAPORE, SINGAPORE"The can has been kicked down the road and the attention will shift to the next meeting. CHARU CHANANA, MARKET STRATEGIST, SAXO MARKETS, SINGAPORE:"I think the speculations will still continue.

[1/2] A man walks at the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023. At a two-day policy meeting, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. The central bank also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target. The decision to keep settings unchanged sent the dollar surging nearly 2% against the yen, its biggest one-day percentage jump since June 17. It also revised up the inflation forecast for fiscal 2024 to 1.8%, from 1.6% seen three months ago.

☆ BOJ keeps yield control policy unchanged
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Jan 18 (Reuters) - The Bank of Japan on Wednesday maintained ultra-low interest rates, including its 0.5% cap for the 10-year bond yield, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure. At a two-day policy meeting, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. The central bank also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target. The decision follows the BOJ's surprise move last month to double the yield band, a tweak that analysts say has failed to correct market distortions caused by its heavy bond buying. Reporting by Leika Kihara, Tetsushi Kajimoto, Kantaro Komiya and Daniel Leussink; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ Economists say BOJ's Amamiya is top governor candidate, tightening this week unlikely
▼ + stars: | 2023-01-16 | by ( Kantaro Komiya | ) www.reuters.com time to read: +5 min

Of the 24 economists who replied to the Jan 5-12 poll, 16, or 67%, chose Amamiya as the most likely candidate to become the next BOJ governor. Four economists in the poll, or 17%, chose Nakaso, who is seen less dovish than Amamiya, as the most likely candidate. In a September poll that asked the same question, Amamiya and Nakaso received 61% and 33% of economists' votes, respectively. Five analysts expected the unwinding of easing to start in April, at the first BOJ meeting under the new governor. Elsewhere in the poll, 83% of economists said Japanese nominal wages were unlikely to outpace rising consumer prices in 2023.

☆ South Korea hints at compensating victims of Japan's colonial forced labour
▼ + stars: | 2023-01-12 | by ( Hyonhee Shin | ) www.reuters.com time to read: +5 min

The Foundation for Victims of Forced Mobilization by Imperial Japan said it has secured initial donations from steelmaker POSCO (005490.KS) totalling 4 billion won ($3.2 million). Japanese Chief Cabinet Secretary Hirokazu Matsuno, Tokyo’s top spokesperson, declined to comment on Seoul’s compensation plan or its public hearing, saying they were domestic matters within South Korea. The foundation's chief, Shim Kyu-sun, said he would encourage South Korean companies to donate "from the perspective of social responsibility". National flags of South Korea and Japan are displayed during a meeting between Komeito Party members and South Korean lawmakers at Komeito Party's headquarters in Tokyo, Japan, July 31, 2019. Under the 1965 deal, South Korea was required to consider all pre-treaty compensation issues settled.

☆ BOJ's 2% inflation target can be tweaked to 'range', deputy governor candidate says
▼ + stars: | 2023-01-11 | by ( Kantaro Komiya | ) www.reuters.com time to read: +2 min

TOKYO, Jan 11 (Reuters) - The Bank of Japan's (BOJ) 2% inflation target can be modified into a "range" to sustain monetary policy flexibility amid possibly higher inflation compared to pre-COVID times, former board member Sayuri Shirai said on Wednesday. Shirai, widely seen as a candidate to become deputy governor at the central bank this spring, also said there should be a review of Japan's monetary policy over the past 10 years. "Given the chance inflation may stay elevated compared to pre-pandemic, we must be careful about abolishing the 2% inflation target and I think making it a range is one possibility." The BOJ, long preoccupied with reviving price growth to avert a risk of deflation, has been an outlier among central banks this year. The new BOJ leadership after the incumbent governor Haruhiko Kuroda's term ends in April should conduct a policy review, Shirai said, as she had the impression the central bank's communication with markets had become slightly "complex".

☆ Japan Nov household spending unexpectedly falls 1.2% year/year
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: 1 min

TOKYO, Jan 10 (Reuters) - Japanese household spending fell 1.2% in November from a year earlier, government data showed on Tuesday, versus a median market forecast for a 0.5% gain. On a seasonally-adjusted month-on-month basis, household spending decreased 0.9% in November, compared with an estimated 0.5% decline. To view the data on the website of the Ministry of Internal Affairs and Communications, click here: http://www.stat.go.jp/english/data/kakei/index.htmReporting by Kantaro Komiya; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Tokyo core CPI seen up 3.8% in December, new 40-year-high
▼ + stars: | 2023-01-06 | by ( Kantaro Komiya | ) www.reuters.com time to read: +2 min

The core consumer price index (CPI) in Tokyo, a leading indicator of nationwide inflation trends, was expected to have climbed 3.8% in December from a year earlier on widening retail price rises, according to the median estimate of 16 economists. The central bank jolted the market last month with a surprise tweak to its long-term yield cap, allowing rates to rise more. Household spending likely dropped 0.5% in November from the previous month, while it was forecast to have risen 0.5% from the same month a year earlier, according to the poll. The government will release the Tokyo CPI data and household spending data on Jan. 10 at 8:30 a.m. (Jan. 9, 2330 GMT). The current account data is due on Jan. 12 at 8:50 a.m. (Jan. 11, 2350 GMT).

☆ Japan to tighten COVID border controls for travellers from China
▼ + stars: | 2023-01-04 | by ( Kantaro Komiya | ) www.reuters.com time to read: +2 min

TOKYO, Jan 4 (Reuters) - Japan will toughen from Sunday its COVID-19 border control measures for travellers from China, Prime Minister Fumio Kishida said, in response to a surge of infections among such visitors. Additional measures will require negative coronavirus tests before passengers board direct flights from China, Kishida said on Wednesday, stepping up measures adopted on Dec. 30. Japan will continue to ask airlines to limit additional flights from China, he told a nationally televised New Year news conference. "Necessary restrictions are still put in place as we are taking all possible measures to prevent infections," Kishida added. Most European Union nations favour pre-departure testing for travellers from China, the European Commission said on Tuesday.

☆ Japan to toughen border control for travellers from China, PM says
▼ + stars: | 2023-01-04 | by ( ) www.reuters.com time to read: 1 min

TOKYO, Jan 4 (Reuters) - Japan will toughen its COVID-19 border control measures for travellers from China effective Jan. 8, Prime Minister Fumio Kishida said on Wednesday. Additional measures will require pre-boarding negative coronavirus test results for passengers on direct flights from China, Kishida said, strengthening the existing emergency measures Japan started on Dec. 30. Japan will continue to ask airlines to limit additional flights from China, Kishida also told a nationally televised New Year news conference. Reporting by Kantaro Komiya Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

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