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Every few years, the investment community rediscovers the case for international equities. A string of outperformance relative to the S&P 500 generates a wave of allocation recommendations, money flows in, and then — historically, more often than not — U.S. exceptionalism reasserts itself and the rotation reverses.

Despite recent foreign-exchange intervention, the Japanese currency has weakened again to near the 160 threshold against the dollar, a level seen as a potential trigger for more government action.

JGBs edged higher in the morning Tokyo session, tracking overnight price gains in U.S. Treasurys.
Japan plans to rebuild between two and five ageing nuclear reactors by the 2040s and as many as 11 to 14 by the 2050s as it aims to secure stable power supply, public broadcaster NHK reported, citing a draft policy to be presented on Friday.

Sumitomo Mitsui Financial Group plans to double revenue from its sales and trading unit to 800 billion yen, or about $5 billion, within the next few years as Japan's shift away from ultra-low rates drives demand for market products. Arihiro Nagata, head of the bank's global markets division, told Reuters that the business currently generates about 400 billion yen in revenue.

Asian equities fell on Thursday as renewed fighting between the United States and Iran pushed investors back towards safer assets, even as oil prices eased after Israel and Lebanon moved to implement a ceasefire. MSCI's Asia-Pacific ex-Japan index dropped 1.5%, while S&P 500 e-mini futures slipped 0.5%.

JGBs were mixed in price terms in morning Tokyo session, but may be weighed by BOJ rate-increase prospects.

The UK's blue-chip index advanced on Tuesday, supported by gains in mining-related shares as base metal prices strengthened, while energy stocks came under pressure following a decline in crude oil. Broader sentiment was also influenced by geopolitical developments, including renewed expectations of progress in US–Iran talks.

The Bank of Japan should provide a clear roadmap for policy normalisation following an anticipated interest rate increase in June to help stabilise the government bond market, according to Arihiro Nagata, global markets chief at Sumitomo Mitsui Financial Group. Speaking to Reuters, Nagata said he expects the BOJ to raise interest rates at its June 15-16 policy meeting and stressed that the central bank's communication regarding future policy moves will be closely watched by financial markets.

Asian equities fell on Tuesday as doubts over a Middle East ceasefire weighed on risk appetite, offsetting optimism around artificial intelligence funding and potential listings. MSCI's Asia-Pacific index excluding Japan slipped 0.6% after a volatile open.

Japan stock have already had a record run, and one of the largest Wall Street banks believes their rally is far from over yet. Goldman Sachs strategists have raised their 12-month target for the benchmark Topix index to 4,400, indicating potential upside of more than 10% from current levels.

Japan must promote usage of yen-based stablecoins for settlement in Asia and create a legal framework to allow trading of crypto exchange-traded funds (ETF), a ruling party panel said in a proposal to the government on Monday.

Some Japanese financial institutions have been granted access to OpenAI's GPT-5.5 model to help strengthen their defences against cyberattacks, Japanese Finance Minister Satsuki Katayama said on Friday. Katayama described the development as a significant advancement for Japan's financial sector following a meeting in Tokyo with Jason Kwon, OpenAI's chief strategy officer.

Japanese banks are, in a historic shift, competing to shore up their deposit base as lending opportunities grow and consumers, seeking to beat inflation, shift their savings into a booming stock market.

Foreign investors continued buying Japanese equities for an eighth consecutive week through May 23, supported by easing oil prices and growing optimism around artificial intelligence-related shares. According to data released by Japan's Ministry of Finance on Thursday, foreign investors purchased a net 1.08 trillion yen ($6.77 billion) worth of Japanese stocks during the week ended May 23.

Japan Investment Corp (JIC), a state-backed fund, is considering selling JSR, two people familiar with the matter said, two years after it took the maker of chipmaking materials private in a $6 billion deal.

Japan's industry ministry said on Wednesday that the benchmark for calculating gasoline price subsidies will switch back to Dubai crude prices from Brent crude from next week.

Japan's Nikkei 225 climbed to a record high on Wednesday, as a rally in semiconductor shares outweighed weakness in banks and real estate stocks. The benchmark index rose 1.25% to 65,811.78 as of 0147 GMT, after touching an intraday high of 66,428.81.

Japan is set to begin talks with South American trade bloc Mercosur on an economic partnership to seek alternative oil sources, critical minerals and lower auto tariffs, the Nikkei newspaper reported on Tuesday.

Joumanna Bercetche, Tom Mackenzie and Ven Ram break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." Chapters: 00:00:00 - MLIV 00:00:03 - Potential Iran Deal, JGBs 00:01:17 - Bond Market Selloff 00:01:54 - USD-Japanese Yen -------- More on Bloomberg Television and Markets Like this video?

Japanese vehicle exports to the Middle East were nearly wiped out in April, government data showed on Thursday, as the U.S.-Israeli war on Iran disrupted shipping to a key region for global automakers like Toyota and Nissan.

Earnings growth for Japanese lenders is likely to moderate as credit risks rise. Japanese banks may also need to allocate more capital to support balance-sheet expansion

Japan's exports grew at a faster-than-expected pace in April, as a weak yen and resilient global demand offset the negative impact of Middle East tensions.

The Nikkei 225 Index surged by over 3.5% today, May 21, its best day in weeks, helped by numerous catalysts, including the potential US-Iran deal, foreign buying of Japanese stocks, and the soaring Softbank stock. It jumped to ¥61,940, higher than this week's low of ¥59,460.

One-third of Japanese companies are already using or considering deploying AI-powered robots, with automakers and other transportation equipment manufacturers leading the way, a Reuters survey showed on Thursday.

China reduced its stash of Treasury to $652.3 billion, the lowest level since September 2008. Japan, the single largest foreign holder, shed approximately $47 billion to $1.191 trillion.

GDP rose by 2.1% on an annualised basis, compared with Reuters-polled analysts' average estimate of 1.7%, and against the 1.3% in the previous quarter. On a quarter-on-quarter basis, the economy expanded 0.5%, compared with estimates of 0.4%, and improving from the 0.3% expansion at the end of 2025.

Asian markets fell sharply on Monday after drone strikes in the Gulf reportedly triggered a fire at a nuclear power facility in the UAE, lifting oil prices and reigniting fears over inflation, tighter monetary policy and slower global growth. The renewed geopolitical tensions pushed investors away from equities and into defensive positions, while global bond yields climbed to multi-month highs amid concerns that elevated energy prices could delay central bank easing and even revive the prospect of further interest rate hikes.

The U.S. and Japan jointly worry about the yen, which is showing increased weakness. How to buttress the currency is another matter.

Experts say Japan will initially export arms in areas where it's already strong, such as air defense systems and naval platforms. Global military spending hit a record of $2.89 trillion in 2025, the 11th straight year of increase, according to SIPRI

Japanese Prime Minister Sanae Takaichi plans to visit Britain and Italy before attending a Group of Seven leaders' summit in France in mid-June, broadcaster NTV reported on Wednesday, citing multiple unnamed government officials.

Japanese investors became net sellers of foreign stocks in April for the first time in four months, as concerns over rising energy costs linked to the Iran war and broader inflation risks weighed on sentiment toward overseas equities. Data released by Japan's Ministry of Finance on Wednesday showed that investors sold a net 636.4 billion yen ($4.04 billion) worth of foreign stocks during the month.

Bessent believes Japan's economy is strong as the US and Japan work on a trade deal. 💴🇯🇵

The prolonged conflict in the Middle East is beginning to weigh heavily on global markets, affecting currencies, fuel prices, airlines, and bond markets as investors assess the broader economic implications. From sharp declines in Asian currencies to the collapse of a low-cost US airline, the economic effects of the conflict are spreading across regions and sectors.

Japan's top maker of snacks has landed on a creative solution to conserve oil-derived input materials: it will switch its brightly coloured packaging to black and white.

Asian markets opened Thursday with a powerful relief bid, as investors leaned into hopes that tensions in the Middle East may ease enough to keep the Strait of Hormuz open. Japan set the tone, with the Nikkei 225 vaulting through 62,000 for the first time, while broader regional equities also pushed higher.

The yen consolidated against other G-10 and Asian currencies on the first day of trading in Tokyo following Japan's long Golden Week holidays.

Japan Prime Minister Sanae Takaichi is set to hold talks in Canberra on Monday with Australian counterpart Anthony Albanese, at which energy security and rare earths cooperation are likely to be high on the agenda.

Concerns about high oil prices are adding to inflation fears in Japan, as the BOJ just moved to rescue the yen from a roughly 40-year low.

Japan has signed a $2.2 billion loan agreement for the first batch of projects under its $550 billion U.S. investment pledge, kicking off financing tied to a trade deal that cut U.S. tariffs on Japanese imports to 15%.

The Japanese yen surged on Thursday, following stark warnings from Tokyo officials, including the finance minister, that intervention to prop up the currency could be imminent.

Japan's two biggest airlines, ANA Holdings and Japan Airlines (JAL), said on Thursday the Middle East conflict is keeping fuel costs elevated and the outlook uncertain.

Japan's government is considering reviving subsidies for electricity and natural gas for three months from July, a source with direct knowledge of the matter said, as it braces for higher energy costs amid conflict in the Middle East.

JGBs fell in early Tokyo trade, tracking overnight price declines in U.S.
The Japanese government is considering a "golden share" plan for Tokyo Electric Power Co (Tepco) that would give it veto rights over key decisions as the utility seeks partners, TV Tokyo reported on Tuesday.

US stock futures drifted lower early Monday, signaling a cautious tone at the start of a busy week for global markets. Sentiment remained under pressure after US–Iran peace talks stalled, which pushed oil prices higher and added to lingering inflation concerns.

Japanese Prime Minister Sanae Takaichi said on Monday she did not see a need "for now" to compile a supplementary budget aimed at cushioning the economic blow from the Middle East conflict.
