Japan Agricultural Cooperatives Group

BOJ Maintains Target Rate at 0.75%

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Major Asia-Pacific stock markets showed mixed results, with Japan's Nikkei index reaching a record high of 63,799 before closing at 63,333. South Korea's Kospi rose 0.9%, with a year-to-date gain of 86%. SoftBank Group shares fell 3.5% despite exceeding profit expectations. SK Hynix's market cap nears USD 1 trillion, reflecting a significant rise in its stock price. Analysts noted a strong FOMO sentiment in AI-related stocks across Japan and South Korea. Other regional markets also experienced slight gains or losses, with Indonesia's market closed for a holiday.

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Mitsubishi UFJ Financial Group, Inc.

ISHRS MSCI S Korea Capped

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Asset Management One Co., Ltd.

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SoftBank Group Corp.

SoftBank

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Taiwan Semiconductor

Sumitomo Mitsui Financial Group, Inc.

Sumitomo Mitsui Financial

Samsung Electronics 

Walmart

Berkshire Hathaway

Berkshire Hathaway B

FTSE Straits Times Index

Samsung Electronics Co., Ltd. Sponsored GDR

Nikkei Hits Record High; SoftBank Falls Over 3% After Results; S Korea Stocks YTD Up 86%; SK Hynix Mkt Cap Near USD1T

A member of the Bank of Japan's board, Ichirou Zou, has stated that food prices will be a crucial determinant of future inflation in the long term. He emphasized the significant role that food prices play in shaping inflationary trends, highlighting the importance of monitoring food price movements as a factor influencing the broader economic landscape.

CoinLive

Bank of Japan Board Member: Food Prices Key to Future Inflation

Former Bank of Japan Governor Haruhiko Kuroda stated that Japan's recent foreign exchange intervention may have temporarily prevented the yen from falling below 160 per dollar, but its long-term effects are limited. Kuroda emphasized that lasting impact requires significant damage to speculators or a shift in market sentiment. He noted that the yen's downtrend is driven by rising oil import costs and interest rate differences between Japan and the U.S. Kuroda believes an equilibrium rate for the dollar/yen is around 120-130, while Japan's economy remains strong with inflation near the central bank's target.

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Thomson Reuters

Ex-BOJ chief Kuroda sees yen intervention impact as short-lived

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The Nikkei 225 has reached a record high of 63,788, primarily driven by technology stocks like SoftBank Group and Murata Manufacturing. However, technical indicators suggest a potential near-term corrective pullback below the 64,145 resistance level, with a bearish "Head & Shoulders" pattern emerging. Momentum indicators indicate exhaustion in the recent bullish trend, raising the likelihood of a retracement towards support levels at 61,945 and lower. This analysis follows a previous report on the Nikkei's bullish reversal.

Market Pulse

Murata Manufacturing Co., Ltd.

BlackRock, Inc.

Murata Mfg Yen1k

Chart alert: Nikkei 225 bullish run is facing minor exhaustion below 64,145

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Japan's LDP Digital Headquarters discussed a next-generation finance proposal focusing on stablecoins and tokenization. Takuya Hirai emphasized AI and blockchain's role in automating finance and warned that the rise of dollar stablecoins could threaten Japan's economic security and monetary sovereignty. The LDP plans to foster public-private collaboration to enhance on-chain infrastructure development.

Simplex Financial Holdings Co., Ltd.

Japan's LDP Discusses Next-Gen Finance Proposal Amid Stablecoin Competition Concerns

Japan's 10-year government bond yield reached a 29-year high of 2.540% following a hawkish summary from the Bank of Japan's April policy meeting. Some policymakers indicated a need for imminent rate hikes due to inflationary risks, with three board members dissenting for a 1.0% increase. Market sentiment is bracing for early interest rate hikes, although uncertainties from the Middle East conflict may weaken the upcoming bond auction. The 30-year and 40-year yields also saw slight increases, reflecting the overall market trend.

- Japan's 10-year government bond yield reached a 29-year high of 2.540% amid a hawkish stance from the Bank of Japan's April policy meeting.  
- Policymakers indicated the need for quicker interest rate hikes if inflation risks increase, influencing market expectations for upcoming bond auctions.  
- The Ministry of Finance planned a bond auction later, with analysts predicting softer results due to uncertainties from the Middle East conflicts, although high yields could attract investors.

Fidelity

Okasan Securities Group Inc.

Bank of Japan

Japan's 10-year bond yield hits 29-year high after hawkish BOJ meeting summary

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Asia-Pacific markets declined on Friday amid rising tensions between Iran and the U.S., with the Nikkei 225 falling 0.2% and Toyota Motor's profit down 49%. The Hang Seng dropped 0.9%, while oil futures saw slight gains. Other indices, including the CSI 300, Taiex, and AZX 200, also experienced losses, reflecting investor concerns over the fragile ceasefire and ongoing hostilities in the region.

- Asia-Pacific markets mostly declined due to rising tensions between Iran and the U.S. despite a fragile ceasefire.  
- The Nikkei 225 dropped 0.2% amid poor results from Toyota, while other indexes in Hong Kong, Shanghai, Taiwan, Singapore, New Zealand, and Australia also fell.  
- Oil futures saw modest gains, with West Texas Intermediate priced at $95.2 per barrel and Brent crude at $100.87 per barrel.

Baystreet

Toyota Motor

Toyota Motor Corp.

Toyota Motor Corporation ADRhedged

Renewed Mideast Clashes Keep Investors on Edge

Asian stocks fell on Friday due to renewed military tensions between the U.S. and Iran, impacting hopes for peace. The South Korean KOSPI dropped 1.6% but was still set for a strong weekly gain of over 11%. Japan's Nikkei 225 and TOPIX indexes also fell over 1%, despite positive wage data suggesting a potential interest rate hike. Oil prices surged, raising inflation concerns. Overall, while regional markets faced declines, technology shares showed resilience amid optimism over artificial intelligence.

Investing

Asia stocks fall as US-Iran military flare-up dents peace hopes

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Japan's service sector growth slowed to an 11-month low in April, with the S&P Global Japan Services PMI dropping to 51 from 53.4 in March. New orders and export business declined due to rising costs and uncertainty from the Middle East conflict. Input costs surged at the fastest rate in a year, prompting companies to increase output charges. Employment rose for the eighth consecutive month, but hiring remained modest. Overall, business sentiment is dampened by concerns over future price hikes and customer demand, with optimism at its lowest since August 2020.

- Japan's service sector growth slowed in April to its lowest rate in 11 months, with the final S&P Global Japan Services PMI dropping to 51 from 53.4 in March.  
- Factors such as rising costs and uncertainty related to the Middle East conflict affected sentiment, with new orders growing at the slowest pace since last October.  
- Despite an increase in employment for the eighth consecutive month, recruitment remained modest, and optimism for the year ahead fell to its lowest level since August 2020 amid concerns about pricing and demand.

Businesstimes News

ISHRS MSCI Japan

Nomura Holdings, Inc.

S&P Global

Japan service sector growth slows to 11-month low in April: PMI

Japan's services PMI fell to 51.0 in April from 53.4, marking an 11-month low, as the economic impact of the Middle East war drove input costs to a 42-month high. Business confidence is at its second-lowest since the pandemic, with new orders expanding at the slowest pace since October 2025. Input prices rose sharply, particularly for fuel, leading to increased output charges. The Japan Composite PMI Output Index also declined, reflecting a slowdown in services despite a rise in manufacturing output. Analysts warn of potential inflation acceleration due to these trends.

- Japan's service sector PMI fell from 53.4 to 51.0 in April, marking the slowest growth in 11 months due to rising input costs linked to the Middle East conflict.  
- Input cost inflation reached a 42-month high, with businesses passing on higher expenses to consumers, contributing to record sales price increases.  
- Business confidence hovered at its second lowest since the pandemic, affected by uncertainty from the ongoing conflict, which also dampened demand in the export sector.

Investinglive

Japan services PMI hits 11-month low in April. War costs bite, input costs 42-month high

Japan Agricultural Cooperatives Group(2525.JP)