The Japanese economy plunges into inflation for the first time …

The Japanese economy plunges into inflation for the first time …


Inflation in Japan has entered the positive territory for the first time in 14 months, as rising commodity costs have led to higher prices for gasoline in pumps, according to data released Friday before the central bank’s decision.

According to the Ministry of Foreign Affairs, consumer prices, excluding fresh food, rose 0.1% year-on-year due to a 20% rise in gasoline prices. Economists expected flat prices overall.

The Bank of Japan is likely to see even the slightest rise in inflation positively, but price momentum is far less than in the United States and other countries where central banks are beginning to predict potential rate hikes. ..

The Bank of Japan predicts that inflation will be below its target of 2% for the foreseeable future. So that main stimulus will probably be maintained for the next few years.

“In the past, even if inflation was 2% in other countries, deflationary pressures have continued in Japan, and that trend will probably continue,” said Takeshi Minami, an economist at the Kitabayashi Chukin Research Institute. It was. “Japanese consumers stop buying when prices go up.”

The Bank of Japan is expected to withstand negative interest rates and asset purchases later on Friday, tinkering with toolkit margins by boosting the expiration of its pandemic-era corporate lending program.

Despite domestic vaccination rates accelerating in recent weeks and infections declining, a complete revival of personal consumption is still on the way.

Some business restrictions will be enforced after Japan finishes the latest emergency in all regions except Okinawa this weekend.

The slump in prices has been exacerbated by several special factors, including the reduction in mobile phone charges advocated by Prime Minister Yoshihide Suga. Consumer prices could rise by 0.5% or 0.6%, excluding the impact of cheaper mobile plans, Minami said.

Yuki Masushima, an economist at Bloomberg Economics, said, “Assuming that the state of emergency ends on June 20, as planned, core inflation (excluding fresh food) is expected to return to 0% year-on-year in June. I’m doing it. ” “Beyond that, stagnant demand and rising energy prices could raise core inflation to 0.2% in the third quarter.”

Excluding fresh food and energy, consumer prices fell 0.2% year-on-year, compared to -0.3% forecast by economists.

Overall inflation fell 0.1% year-on-year. Analysts predicted -0.2%.

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Mazda will release 13 electric models by 2025

Mazda will release 13 electric models by 2025


Mazda said Thursday that it plans to launch 13 electric vehicles worldwide by 2025, starting with a new car next year.

The new model includes three electric vehicles, five gas-electric hybrid vehicles, and five plug-in hybrid vehicles, automakers said.

The plan is part of Mazda’s efforts to reach the goal of supplying electricity to all vehicles and turning a quarter of them into electric vehicles by 2030.

From 2025, Mazda will focus on developing electric vehicles using a dedicated platform currently under development.

The company also announced that it will release its first self-driving car next year. This model is equipped with Level 2 autonomous driving technology that can control steering, braking and acceleration.

However, autonomous driving systems typically do not provide autonomous driving services because they are designed to operate only when an emergency, such as a medical problem affecting the driver, is detected. In these situations, the vehicle can pull the vehicle to the side of the road while checking the safety of the surrounding environment.

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Dollar rises above 110.50 yen in Tokyo

Dollar rises above 110.50 yen in Tokyo


Following the sharp rise in US long-term interest rates after the Federal Reserve Board’s policy-making meeting, the dollar strengthened to move in the range of 110 yen higher in Tokyo trading on Thursday.

The dollar at 5 pm rose from 109.93 yen on Wednesday to 110.59 yen. The euro went from $ 1.2132 to $ 1.1954 and from 133.38 to 132.20.

The dollar surged to 110.70 yen terrain in an overnight transaction and rose further early in the morning to a level above 110.80 yen.

The dollar buying was triggered by a 10-year Treasury yield surge after the Fed raised its tightening timeline by at least a year to 2023 at a two-day Federal Open Market Committee meeting. Tapered, according to traders.

However, the greenback was under selling pressure in the morning following a major drop in US long-term interest rates in after-hours trading and a plunge in the Nikkei Stock Average.

In the afternoon, the dollar fluctuated around 110.65 yen and sought a direction.

According to currency brokers, it was “surprising” that the Fed predicted two rate hikes in its “dot plot” forecast.

According to other market sources, the Fed’s meeting was “more hawkish than expected.”

Meanwhile, Japanese think-tank officials said the dollar is expected to rise moderately as low interest rates continue for the foreseeable future.

The Federal Reserve Board pointed out that it was too early to start tapering, officials said.

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Dollar rises above 110.50 yen in Tokyo

Tokyo stocks fall after federal government signals tightening first …


Tokyo shares plunged Thursday following the sale of Wall Street after the Federal Reserve Board suggested a policy shift to early tightening.

The Nikkei Stock Average No. 225 on the Tokyo Stock Exchange closed at 29,018.33, down 272.68 points (0.93%) after falling 150.29 points on Wednesday.

The Topix index for all first section issues fell 12.29 points at 1,963.57, or 0.62%, to record a three-day streak. The wider index rose 0.38 points the day before.

Shares plummeted shortly after the opening bell as investors rushed to sell in light of the decline in all three major US market indicators, including the Dow Jones Industrial Average on Wednesday.

The Fed’s policymakers have cooled their sentiment at the meeting until Wednesday, until the newly predicted rate hike in 2023, compared to previous predictions that there would be no hike until at least 2024.

Fed Chair Jerome Powell’s remarks at a press conference after the Federal Open Market Committee’s meeting raised concerns that discussions on reducing quantitative easing were held at the policy-making meeting.

In the Tokyo market, tech stocks were hit by particularly tough sales due to the sharp rise in US long-term interest rates.

However, stock prices held back in the afternoon, thanks to the gradual rise in Dow futures in after-hours trading in the afternoon and the appreciation of the dollar.

Masayuki Otani, chief market analyst at Securities Japan, said the Fed’s unexpected hawkish move “throws cold water into the market,” which has been largely bullish since the beginning of the week.

“But the rapidly emerging view that there will be no tapering or rate hikes until the global economy is fully recovered from the coronavirus crisis has limited market losses,” Otani said.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., Ltd., pointed out that he resisted the decline in stock prices because the start of tapering negotiations had already been considered.

In the first section of the TSE, 111 issues remained unchanged, but the decliners outnumbered the winners from 1,409 to 673. Volume fell from 1,028 million shares on Wednesday to 997 million shares.

Construction machinery maker Komatsu fell 5.25% following a downgrade in its investment rating.

Rising interest rates in the United States pushed down electronic component maker TDK by 2.62% and tech investor SoftBank Group by 1.40%.

Steel makers and other material producers faced widespread sales.

Meanwhile, export-oriented companies such as automaker Toyota were supported by the strong dollar.

Banking groups and insurers, including Mitsubishi UFJ and T & D, have benefited from rising US interest rates.

In index futures trading on the Osaka Exchange, the Nikkei average’s major contracts in September plummeted 250 points and closed at 29,000.

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JR East fires 200 workers from July

JR East fires 200 workers from July


East Japan Railway Company (JR East) is temporarily closed for about 200 employees from July 1st to September 30th, mainly at the head office.

JR East’s first layoff reflects a drop in passenger demand during the coronavirus crisis, the company said Wednesday.

This program does not apply to train drivers or other crew members. JR East will not reduce the salary of those who take temporary leave by using the government’s employment adjustment subsidy system.

JR East has decided to dismiss employees in response to improvements in operational efficiency through business reviews and changes in the circumstances surrounding this year’s Summer Olympics and Paralympics (such as the organizer’s prohibition of accepting spectators from overseas). did.

JR East posted a consolidated net loss of 577.9 billion yen in 2020, which ended in March, which was the first deficit since its establishment with other JR group companies due to the dissolution and privatization of the Japanese National Railways in April 1987. Did.

In fiscal 2019, JR East posted a net profit of 198.4 billion yen.

The business results for fiscal 2020 will be disastrous, and we are aiming to significantly reduce labor costs.

Among other JR Group companies, West Japan Railway Company (JR West) and Central Japan Railway Company (JR Tokai) have already dismissed their employees during the pandemic.

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Japanese rice dealers turn to China in domestic consumption …

Japanese rice dealers turn to China in domestic consumption …


The Japan Agricultural Cooperative Group and wholesalers are stepping up their efforts to export rice to China, the world’s largest rice consumer, as the domestic market shrinks.

Although there are still concerns about the impact of worsening Sino-Japanese relations on Sino-Japanese relations, dealers have partnered with Chinese companies to promote high-priced, high-quality rice against the backdrop of the Japanese food boom in China. ..

According to the Japanese Ministry of Agriculture, Japanese rice costs two to three times as much as rice grown in China and the United States. Export costs make Japanese rice even more expensive in overseas markets.

Therefore, Japanese rice is affordable for the average family and needs to be lowered in order to be competitive in overseas markets.

China consumes about 140 million tons of rice annually, which is about 20 times that of Japan, and rice consumption is about 20 times each year, mainly due to the decrease in the number of children and changes in people’s diets. It has decreased by 100,000 tons.

Zenno International Co., Ltd., a Tokyo-based subsidiary of the Japan Agricultural Cooperative, will supply rice made in Niigata Prefecture to Chinese food giant COFCO in April and sell it under the new imported rice brand King Food. Announced.

The first batch of supply is only 48 tonnes. However, Zen-Noh sees the partnership with COFCO as a major step forward and sees it as an opportunity for Chinese customers to get Japanese rice.

Kitoku Shinryo, also a major wholesaler based in Tokyo, started exporting rice to China in 2016, and sales of products suitable for Chinese New Year gifts are increasing.

“China has a lot of room for growth because it is very motivated to consume,” said an official of Kitoku Shinryo.

The company is currently considering offering its products on Tmall, a Chinese e-commerce platform operated by Alibaba Group.

The Japanese government aims to increase the value of rice exports to China from five times in 2019 to 1.9 billion yen in 2025.

However, if tensions between Japan’s major allies, China and the United States continue, and relations between Japan and China deteriorate, such attempts are unlikely to succeed.

“I don’t think there will be an immediate impact,” said a person familiar with Kitoku Shinryo, citing the possibility of worsening Japan-China relations. But a boycott of Japanese products by Chinese customers “may slow rice exports,” he added.

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