Hospitality Services

AP Holdings Co., Ltd.

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1369

2525

Annual core inflation in Tokyo reached a four-year low of 1.5% in April, remaining below the Bank of Japan's 2% target for the third consecutive month. This slowdown is attributed to subsidies that offset rising raw material costs amid the Middle East conflict. Analysts predict inflation will accelerate due to surging oil prices and a weak yen, pressuring the BOJ to consider interest rate hikes. Energy costs fell 4.6% year-on-year, while food prices rose 4.6%. The BOJ signaled potential rate increases as inflationary pressures mount.

- In April, Japan's core inflation rate fell to a four-year low of 1.5%, remaining below the central bank's 2% target for the third consecutive month due to subsidies offsetting rising costs from Middle East conflicts.  
- Analysts expect consumer inflation to accelerate in the coming months due to rising oil prices and weakened yen, which will pressure the Bank of Japan (BOJ) to consider rate hikes.  
- The BOJ maintained interest rates this week but signaled a potential rate increase as early as June in response to ongoing inflationary pressures.

Businesstimes News

Pro Ultrshrt Yen

Mitsubishi UFJ Financial Group, Inc.

Asset Management One Co., Ltd.

Currencyshares JPY Trust

Japan Agricultural Cooperatives Group

Pro Ultr Yen

Sompo Holdings,Inc.

Thomson Reuters

Core inflation in Tokyo slows, seen accelerating on energy shock

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Japan has intervened to support the yen against the U.S. dollar amid rising oil prices linked to the Iran war. The country is considering entering oil futures markets to alleviate currency pressure. The yen has been weakened by the Bank of Japan's slow policy changes and Prime Minister Takaichi's fiscal agenda. Japan last intervened in July 2024, and officials are prepared for further action if necessary. The intervention process involves the Ministry of Finance issuing short-term bills and using foreign reserves to stabilize the yen, with support from G7 partners being crucial.

Simplex Financial Holdings Co., Ltd.

BlackRock, Inc.

Explainer-what would Japanese intervention to boost a weak yen look like?

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The Bank of Japan (BOJ) is expected to hold interest rates steady in April due to ongoing Middle East uncertainties, with a potential hike as early as June as inflation risks rise. Market expectations for an April increase have dropped below 20%. The BOJ is likely to maintain a hawkish stance while revising growth forecasts down and inflation projections up. Policymakers are cautious, balancing rising inflation against fragile economic growth, particularly impacted by elevated energy prices.

Investinglive

Nagatanien Holdings Co., Ltd.

Monogatari Corporation

Bank of Japan

BOJ likely to hold rates in April but signal readiness to hike as inflation risks rise

Japan will grant 'special importance' to oil-based products. (Nikkei)

Wallstreetcn

Asian markets opened higher on Tuesday, led by Japan's Nikkei 225 and South Korea's Kospi, as investors returned to equities following a period of geopolitical volatility. The rebound was fueled by a decline in oil prices after US Vice President JD Vance suggested a potential deal between Washington and Tehran. Oil prices fell, with US West Texas Intermediate crude down 2.16% to $96.94 per barrel. Broader market sentiment improved, supported by a softer dollar and gains across China and Hong Kong, despite concerns over domestic economic conditions in Australia.

Invezz

Kospi, Nikkei 225 lead Asian markets higher as oil eases on Iran hopes

Japan is set to release an additional 20 days of oil reserves starting in May, following a previous 50-day release initiated in March. The country aims to diversify its oil supply routes away from the Strait of Hormuz, targeting over 50% of imports from alternative sources including the US, Latin America, and Africa. This strategy is in response to growing energy security concerns amid Middle East disruptions, while Japan maintains substantial reserves of approximately 230 days of consumption. The government is prioritizing fuel allocation to critical sectors to mitigate supply disruptions.

Japan to release more oil reserves, shift supply away from Hormuz routes

Japan is considering releasing more oil reserves in May to cover 20 days of consumption due to ongoing risks in the Strait of Hormuz. The country, reliant on Middle Eastern oil for 95% of its supply, has already begun releasing 80 million barrels as part of a coordinated effort by the IEA. Prime Minister Takaichi has urged Iran to ensure safe passage for ships through this critical chokepoint, emphasizing its importance for global logistics. Current conditions for transit remain uncertain, with Iran still controlling the passage.

Baystreet

Japan Weighs Releasing More Oil Reserves as Hormuz Risks Persist

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