LONDON: Stock markets diverged Monday as a deepening political crisis in France sent Paris into a tailspin while a new Japanese ruling party leader buoyed shares in Tokyo.&nbsp;Gold pushed ever closer to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal&#39;s attractiveness.&nbsp;The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu, who had been prime minister for less than a month, resigned just 14 hours after naming a largely unchanged cabinet.&nbsp;France&#39;s &quot;fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit&quot;, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.&nbsp;&quot;With government borrowing running at more than five percent of GDP and the debt ratio rising, the risk premium on French government bonds will continue to widen,&quot; he added.&nbsp;Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed around three percent in afternoon trading.&nbsp;The London and Frankfurt stock exchanges, however, were up in afternoon deals.&nbsp;On Wall Street, both the S&amp;P 500 and tech-heavy Nasdaq Composite sat next to record highs as AI deals overshadowed concerns over a government shutdown that dragged into a second week.&nbsp;Shares in Advanced Micro Devices (AMD) jumped more than 33 percent after the chipmaker announced a multi-year partnership with OpenAI to develop AI data centres which should bring it tens of billions of dollars in new revenue over the next five years.&nbsp;In Asia, Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan&#39;s ruling party will loosen monetary policy to kickstart the economy.&nbsp;Sanae Takaichi, likely to become Japan&#39;s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.&nbsp;The yen weakened more than one percent against the dollar and hit a record low against the euro.&nbsp;Yields on 30-year Japanese bonds rose sharply reflecting fears the country&#39;s already colossal debt will balloon further.&nbsp;After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan&#39;s economy, rural areas and primary industries.

Business

Paris stocks slumped after French PM Sebastien Lecornu resigned, while Tokyo surged on optimism over Japan’s incoming leader Sanae Takaichi. 

Paris stocks drop as French PM resigns, Tokyo soars

<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bangkok: Japan&rsquo;s Nikkei stock index jumped nearly 5% on Monday and the yen weakened after its ruling party chose an ultra-conservative as its leader and likely first woman prime minister. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Other Asian markets also were mostly higher. US futures climbed and oil gained about $1 a barrel. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Liberal Democrats elected Sanae Takaichi, an ally of the late Prime Minister Shinzo Abe, as their leader, likely ensuring she will carry on with his market-friendly policies. Takaichi, 64, admires former British Prime Minister Margaret Thatcher and backed Abe&rsquo;s ultra-conservative vision for the country. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">She is likely to become prime minister because the LDP has the most seats in the lower house, although not a majority. It chooses the prime minister, and opposition groups are splintered. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Takaichi faces a host of challenges that have bedeviled her predecessors, BMI of Fitch Solutions said in a commentary. That includes &ldquo;boosting Japan&rsquo;s economic competitiveness and strengthening the country&rsquo;s technological and industrial base and adopting measures to mitigate the impact of Japan&rsquo;s ageing and declining population amid a colossal public debt burden.&rdquo; <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Still investors, especially non-Japanese ones, were pleased, said Neil Newman, head of strategy at Astris Advisory Japan. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;Obviously investors like what she has been saying and certainly today judging by the number of stocks that moved and which stocks moved, it seems like pretty much led by foreigners so far,&quot; Newman said. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">An unconfirmed report that US President Donald Trump might be considering ways to reduce the cost of his higher tariffs on auto parts and other materials for US manufacturers helped automakers&#39; share prices. Toyota Motor Corp.&#39;s shares jumped 4.9% in Tokyo and Honda Motor Co. gained 4.7%. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Nikkei 225 index rose 4.7% to 47,924.52 by mid-afternoon Monday, while Hong Kong&#39;s Hang Seng index sank 0.6% to 26,976.37. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The yen weakened against the US dollar, on expectations that Takaichi will boost spending, likely adding to inflationary pressures. The dollar rose to 150.31 Japanese yen from 149.33 yen. The euro slipped to $1.1723 from $1.1730. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In Australia, the S&amp;P/ASX 200 shed 0.1% to 8,976.70.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Markets in mainland China, Taiwan and South Korea were closed for holidays. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">On Friday, most US stocks ticked higher, adding to Wall Street records.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The S&amp;P 500 edged up by less than 0.1% to close out its seventh winning week in the last nine, ending at 6,715.79. The Dow Jones Industrial Average climbed 0.5% to 46,758.28. Both added to their all-time highs set the day before. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Nasdaq composite lost an early gain and slipped 0.3% from its own record, to 22,780.51. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Usually, the first Friday of each month has Wall Street transfixed on the monthly jobs update that the US government publishes. It shows how many jobs employers created and destroyed, while also updating the unemployment rate. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">But the shutdown of the US government, now in its third day, delayed the release of that data. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Such information is particularly important now, given how much on Wall Street is riding on the expectation that the job market is continuing to slow by enough to get the Federal Reserve to keep cutting interest rates. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Past shutdowns of the US government have tended not to hurt the economy or stock market much, and the thinking is that this one could be similar, even if President Donald Trump has threatened large-scale firings of federal workers this time around. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Reports came in mixed on activity for US businesses in the health care, real estate and other services industries. One from the Institute for Supply Management said growth is stalling, while another from S&amp;P Global said it&rsquo;s still growing slowly. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In other dealings early Monday, US benchmark crude oil gained 99 cents to $61.87 per barrel. Brent crude, the international standard, added 99 cents to $65.52 per barrel. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A group of countries that are part of the OPEC+ alliance of oil-exporting countries agreed during the weekend to a small boost in oil production, citing a steady global economic outlook. That alleviated fears of an oversupply. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The group said after a virtual meeting on Sunday that it will raise oil production by 137,000 barrels per day in November, the same amount it announced for October. The group has been raising output slightly in a series of boosts all year, after announcing cuts in 2023 and 2024.

People walk by an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, Oct. 6, 2025. (Kyodo News via AP)

Banking

Japan’s Nikkei stock index jumped nearly 5% on Monday and the yen weakened after its ruling party chose an ultra-conservative as its leader and likely first woman prime minister.

Japan’s Nikkei jumps 5% after ruling party elects Takaichi leader

<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">TOKYO: US technology company Nvidia and Fujitsu, a Japanese telecommunications and computer maker, agreed Friday to work together on artificial intelligence to deliver smart robots and a variety of other innovations using Nvidia&#39;s computer chips. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;The AI industrial revolution has already begun. Building the infrastructure to power it is essential in Japan and around the world,&rdquo; Nvidia Chief Executive Jensen Huang said, hugging his Fujitsu counterpart Takahito Tokita on stage. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;Japan can lead the world in AI and robotics,&rdquo; Huang told reporters at a Tokyo hotel. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The companies will work together on building what they called &ldquo;an AI infrastructure,&rdquo; or the system on which the various futuristic AI uses will be based, including health care, manufacturing, the environment, next-generation computing and customer services. The hope is to establish AI infrastructure for Japan by 2030. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">It initially will be tailored for the Japanese market, leveraging Fujitsu&rsquo;s decades-long experience here, but may later expand globally, and will utilize Nvidia&rsquo;s GPUs, or graphics processing units, which are essential for AI, according to both sides. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The two executives did not outline specific projects or give a monetary figure for planned investments. But exploring a collaboration in AI for robots with Yaskawa Electric Corp., a Japanese machinery and robot maker, was noted as a possible example. AI will be constantly evolving and learning, they said.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Fujitsu and Nvidia have been working together on AI, speeding up manufacturing with digital twins and robotics to tackle aging Japan&rsquo;s labor shortages. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Tokita said the companies were taking a &ldquo;humancentric&rdquo; approach aimed at keeping Japan competitive. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;Through our collaboration with Nvidia, we aim to create new, unprecedented technologies and contribute to solving even more serious social issues,&rdquo; said Tokita.

Nvidia Chief Executive Jensen Huang, left, and Fujitsu Chief Executive Takahito Tokita shake hands during an announcement in Tokyo Friday

Artificial Intelligence

US technology company Nvidia and Fujitsu, a Japanese telecommunications and computer maker, agreed Friday to work together on artificial intelligence to deliver smart robots and a variety of other innovations using Nvidia's computer chips.

Nvidia and Fujitsu agree to work together on AI robots

TOKYO: Japan&rsquo;s chief trade negotiator defended a tariffs deal with the US, expressing respect for President Donald Trump and calling him a &ldquo;tough negotiator.&rdquo; Trade envoy Ryosei Akazawa said the pact, which set tariffs on most Japanese exports to the US at 15%, was comparable to a deal between Washington and the European Union. Unlike the EU, Japan did not have to lower its tariffs on US goods, he noted. Japan also committed to investing $550 billion in US projects. Trump had initially set Japan&rsquo;s tariff rate to increase by 25%. Critics in Japan ridiculed Akazawa&rsquo;s repeated trips to the US to work toward a deal as a waste of taxpayer money, saying he should pitch a tent on the White House lawn. Akazawa said talks with US Commerce Secretary Howard Lutnick, Trump and others in his administration were tense at first. By his eighth trip, a rapport had been established, enabling the two sides to reach an agreement by July. &ldquo;President Trump was a tough negotiator, but I kept insisting, and he would listen graciously. I have all the respect for him,&rdquo; he told reporters at the Foreign Correspondents&rsquo; Club of Japan. &ldquo;It was a good round of negotiations.&rdquo; &ldquo;It goes without saying that with any government negotiations, there will always be someone who says Japan lost out, no matter what,&rdquo; Akazawa said. The double-digit tariffs Trump imposed on imports from various nations were a blow to Japan, a key US ally in Asia. Tokyo especially objected to 25% tariffs Trump ordered on imports of steel, aluminum and automobiles. Japan&rsquo;s economy depends heavily on exports. Shipments to the US fell nearly 14% in August compared to a year earlier, the fifth straight month of declines, as auto exports were hit by the tariffs. US tariffs on Japanese automobiles and auto parts are now set at 15%, far higher than the original 2.5%. Japanese automakers also produce many of the vehicles they sell in the US in North America. The friction with the US over tariffs has been an added burden for Prime Minister Shigeru Ishiba&rsquo;s administration. He is due to be replaced as leader of the ruling Liberal Democratic Party later this week. The Liberal Democrats have ruled Japan almost continuously since the 1950s, but they lost their majority in the lower house, which chooses the prime minister, and will need coalition partners. Akazawa brushed off concerns that the US understanding of the deal may differ from Japan&rsquo;s. He said whoever becomes the next prime minister, Japan has an established tradition of respecting agreements, especially those forged with foreign countries.

Japan’s top negotiator on President Donald Trump’s tariffs, Economic and Fiscal Policy Minister Ryosei Akazawa speaks to reporters at the Foreign Correspondents’ Club of Japan

Japan’s chief trade negotiator defended a tariffs deal with the US, expressing respect for President Donald Trump and calling him a “tough negotiator.”

Japan's lead trade negotiator defends tariffs deal with the US

<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">TOKYO:&nbsp;<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Sentiment among Japan&rsquo;s large manufacturers improved for a second straight quarter, according to a closely watched Bank of Japan survey, making a rate hike by its central bank more likely.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The quarterly survey, called the &ldquo;tankan,&rdquo; showed the outlook among major manufacturers, the key so-called diffusion index, rose 1 point to plus 14 from the findings in June.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The survey is an indicator of companies foreseeing good conditions minus those feeling pessimistic.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The tankan for large manufacturers was plus 12 in March, marking the first drop in a year. Sentiment among large non-manufacturers was unchanged at plus 34, according to the latest tankan.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The relative optimism in the latest tankan reflects some relief over an agreement on tariffs with the US, reached in July.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The deal with the administration of President Donald Trump imposes a 15% tariff on most goods exported to the US Some goods face higher tariffs. Initially, the US imposed a 25% tariff on auto imports, so the latest deal is an improvement for Japanese automakers. It also increases certainty over US policy, at least for now.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">However, the higher tariffs imposed on exports to the world&#39;s biggest market are still squeezing profits, wages, investment, and spending for many industries.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Kei Fujimoto, senior economist at SuMi Trust, said that despite the concerns about the tariffs&rsquo; impact on Japanese corporate earnings, the damage so far has been relatively limited.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Inbound tourism is also helping.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;We do not believe inbound-related demand from tourists has peaked. The number of tourists visiting Japan continues to show an upward trend,&rdquo; he said. &nbsp;The tankan findings could influence an upcoming decision by the Bank of Japan on interest rates. The BOJ has kept rates near zero for years to help stimulate consumer spending and business investment and counter weak demand that led to deflation.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">But prices have risen above the central bank&#39;s target range of about 2%. The tankan shows the average inflation outlook for one year ahead was unchanged at 2.4%.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Analysts expect the Bank of Japan to raise its benchmark rate soon, but it&rsquo;s unclear if it will do so at the next meeting later this month or later. The central bank raised its benchmark rate to 0.5% from 0.1% earlier this year.

The headquarters of Bank of Japan is seen in Tokyo, Jan. 23, 2024

Sentiment among Japan’s large manufacturers improved for a second straight quarter, according to a closely watched Bank of Japan survey, making a rate hike by its central bank more likely.

Japan's central bank survey shows an improved business sentiment 

Reuters

MUMBAI: Japan&#39;s Mitsubishi UFJ Financial Group 8306.T is in advanced talks to buy a 20% stake in Indian non-banking finance company Shriram Finance SHMF.NS for 232 billion rupees ($2.61 billion), the Economic Times reported on Wednesday, citing people familiar with the matter.&nbsp;A deal would mark the latest move by a Japanese financial institution to acquire a stake in an Indian firm, following the banking arm of rival Sumitomo Mitsui Financial Group 8316.Tbuilding a 24.2% holding in Mumbai-based Yes Bank YESB.NS.&nbsp;Facing a shrinking domestic market and years of rock-bottom interest rates, Japan&#39;s biggest banks have enthusiastically sought out targets overseas for many years.&nbsp;MUFG - Japan&#39;s largest lender by assets - owns a 23.62% stake in Wall Street investment bank Morgan Stanley MS.N.&nbsp;The Japanese bank declined to comment on the report, while Shriram Finance did not immediately respond to a Reuters request for comment.&nbsp;The investment will be through a primary issuance via a preferential allotment and will not entail any secondary sale of shares, the newspaper said, adding that both MUFG and Shriram Finance have signed an exclusivity agreement on negotiations.&nbsp;The Tokyo-based banking leader is, however, not averse to taking a higher stake in the company or even a controlling interest, over time, the report said.&nbsp;Shriram Finance reported an 8.8% year-on-year rise in standalone profit at 21.56 billion rupees for the quarter ended June 30. Its results were slightly below the analysts&#39; average estimate of 21.91 billion rupees, according to data compiled by LSEG.

Asia

Japan’s MUFG is in advanced talks to acquire a 20% stake in India’s Shriram Finance for $2.61 billion, aiming to expand abroad amid domestic challenges; both firms have signed an exclusivity agreement.

MUFG in talks for $2.6 billion stake in India's Shriram Finance, Economic Times reports

<span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">SEOUL: Japan&rsquo;s outgoing prime minister and his South Korean counterpart underscored the need to strengthen cooperation between their nations, as US President Donald Trump&rsquo;s transactional approach to allies and trade wars are bringing the often-feuding Asian neighbors closer. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Tuesday&#39;s meeting between Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung in the South Korean southeastern port city of Busan is their third and likely final summit. Earlier this month, Ishiba offered to resign over his ruling coalition&rsquo;s recent election defeat, triggering a contest to find his successor. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;I hope that (South) Korea and Japan can grow closer emotionally, economically, socioculturally, and in terms of security, just as they are in physical distance,&rdquo; Lee said at the start of the meeting. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Ishiba said that it was &ldquo;deeply meaningful&rdquo; to conclude his final diplomatic activities as prime minister with a summit with Lee. &quot;By sharing each other&rsquo;s wisdom and experience, we can strengthen relations between our two countries while addressing our common challenges,&rdquo; Ishiba said through a translator. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The two leaders issued a joint statement vowing further bilateral consultations on shared issues like low birth rates, rural revitalization and enhanced disaster prevention steps. Lee&#39;s office said the two also reaffirmed their commitment to the complete denuclearization of the Korean Peninsula, a reference to efforts to end North Korea&#39;s nuclear program. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">South Korea and Japan are both key US allies and major trading partners. But their ties have experienced constant shifts because of history disputes stemming from Japan&rsquo;s past colonial rule of the Korean Peninsula. Relations began improving under Lee and Ishiba&rsquo;s predecessors. But the impending departure of Ishiba, who has acknowledged Japan&rsquo;s wartime aggression and shown empathy toward the Asian victims, could pose a foreign policy challenge to Lee. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Both governments said the summit was part of earlier agreements to maintain close communication and high-level exchanges between the countries. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">When Lee traveled to Tokyo in August for his second summit with Ishiba, he became the first South Korean leader to pick Japan as their first destination for a bilateral summit since the two countries established diplomatic ties in 1965. In Tokyo, Lee said he intended to pursue pragmatic diplomacy and build future-oriented relations with Japan. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">South Korea and Japan have sought ways to tackle together challenges like North Korea&rsquo;s expanding nuclear arsenal and supply chain vulnerabilities. They are now being pushed closer together by Trump&rsquo;s push to reset global trade. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Lee&rsquo;s national security director, Wi Sung-lac, earlier told reporters that Tuesday&#39;s summit would provide a venue to expand discussions in the midst of &ldquo;the rapidly changing geopolitical environment and trade order.&rdquo; He said that the meeting would also discuss Ishiba&rsquo;s possible active role in developing bilateral ties even after his departure. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">South Korea and Japan have pledged hundreds of billions of dollars in US industrial investments in hopes of avoiding the Trump administration&rsquo;s highest tariffs. But South Korean officials acknowledge they remain at odds with Washington over how Seoul&rsquo;s proposed $350 billion package would be structured and operated. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">South Korean officials have proposed delivering the investment through loans and loan guarantees and have balked at U.S. demands for upfront payments, which they say would put the country at risk of a financial crisis given the size of its foreign-currency reserves. <span style="font-size: 18px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Unlike Seoul, Tokyo has already put its trade deal with Washington in writing. Trump earlier this month signed an order to lower tariffs on Japanese automobiles and other critical imports, from the initially proposed 25% to 15% while the two governments simultaneously signed a joint statement in Washington confirming $550 billion in Japanese investment in US projects.

South Korean President Lee Jae Myung, right, shakes hands with Japanese Prime Minister Shigeru Ishiba during a meeting in Busan, South Korea

Japan’s outgoing prime minister and his South Korean counterpart underscored the need to strengthen cooperation between their nations, as US President Donald Trump’s transactional approach to allies and trade wars are bringing the often-feuding Asian neighbors closer.

Japan and South Korea leaders commit to closer ties in their final summit

Tokyo: Japanese police said on Thursday they had arrested a 75-year-old woman who allegedly confessed to keeping the body of her daughter in a freezer for two decades.&nbsp;Investigators on Tuesday found the body of an adult woman in a deep freezer at the home of Keiko Mori in Ibaraki prefecture, northeast of Tokyo, said a local police spokesperson on condition of anonymity.&nbsp;Mori &quot;said it was her daughter,&quot; Makiko, who was born in 1975 and would be 49 or 50-years-old if alive, the spokesperson said.&nbsp;&quot;Decay was advancing,&quot; he added, noting that an autopsy would be conducted to determine the cause of death.&nbsp;Mori came to police on Tuesday with a relative to report that she had kept the body in the freezer.&nbsp;When investigators visited the house with Mori, they found the body dressed in a T-shirt and underwear, kneeling face-down inside the freezer, the spokesperson said.&nbsp;Mori was arrested on suspicion of abandoning a body.&nbsp;She told investigators that the smell was filling the house so she bought the freezer and placed the daughter&#39;s body inside, according to the spokesperson.&nbsp;Mori had several children, but police did not disclose how many or what they had told investigators about Makiko.&nbsp;She had been living alone since the death of her husband earlier this month, the spokesman said.&nbsp;

Mother told investigators smell was filling the house so she bought freezer, placed the daughter's body inside.



Japan arrests woman for keeping daughter's body in freezer for 20 years

ISE, Japan:&nbsp;Deep in the forests of the Japanese Alps, Shinto priests keep watch as woodsmen dressed in ceremonial white chop their axes into two ancient cypress trees, timing their swings so that they strike from three directions. An hour later, the head woodcutter shouts, &ldquo;A tree is falling!&rdquo; as one of the 300-year-old trees crashes down, the forest echoing with a deep crack. A moment after, the other cypress topples over. The ritualistic harvesting of this sacred timber is part of a remarkable process that has happened every two decades for the last 1,300 years at Ise Jingu, Japan&rsquo;s most revered Shinto shrine. Each generation, the Ise complex is knocked down and rebuilt from scratch, a massive, $390 million demolition and construction job that takes about nine years. <figure class="fr-media"><img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/1d16fcbd-b2f8-44c4-a5a3-34a3fff20a27-Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP) (3).jpg" alt="Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP) " style="max-width: 100%;" class="fr-fil fr-dib"><figcaption class="caption-cover-image text-sm text-gray-600 italic">Each generation, the Ise complex is knocked down and rebuilt from scratch, a massive, $390 million demolition and construction job that takes about nine years.(AP)</figcaption></figure> It requires the country&#39;s finest carpenters, woodcutters, builders and artisans to pour their hearts into the smallest details of structures that are doomed from the moment the work begins. The buildings at Ise will only stand for about a decade before the project starts all over again, but as the priests consecrate the construction, the workers shout: &ldquo;A building for a thousand years! Ten thousand years! A million years and forever!&rdquo; Those close to the shrine often recognize a deep poignancy about the way the never-ending rebuilding intertwines with their lives. &ldquo;Twenty years from now, the older generation &mdash; our grandfathers &mdash; will likely no longer be here. And those of us who are still young now will then see our grandchildren involved in the next&rdquo; version of Ise, said Yosuke Kawanishi, a Shinto priest whose family company crafts miniature replicas of the shrine. &ldquo;After 20 years, the shrine we are building will have deteriorated quite a bit. But instead of thinking, &lsquo;It&rsquo;s a shame to tear down something we worked so hard to build,&rsquo; we think, &lsquo;It&rsquo;s been 20 years, so we want the deity to move into a beautiful, fresh, new shrine.&rsquo;&rdquo; Journalists for The Associated Press are documenting the latest version of this ancient cyclical process, which publicly began this year. Rebuilding the 125 shrine buildings is a 9-year process This is the 63rd cycle of reconstruction. The first was documented in 690, during Empress Jitō&rsquo;s reign, said Noboru Okada, professor emeritus at Kogakkan University and a specialist in Japanese history and archeology. All 125 shrine buildings will be knocked down and identical structures &mdash; as well as more than 1,500 garments and other ritual objects used in the shrine &mdash; will be rebuilt using techniques that have been painstakingly passed down over generations. There are 33 accompanying festivals and ceremonies, cumulating in a 2033 ritual that sees the presiding deity transferred to the new shrine. <figure class="fr-media"><img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/a295e40d-0939-4254-83f5-ec2a10017469-Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP) (4).jpg" alt="Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP)" style="max-width: 100%;" class="fr-fil fr-dib"><figcaption class="caption-cover-image text-sm text-gray-600 italic">All 125 shrine buildings will be knocked down and identical structures &mdash; as well as more than 1,500 garments and other ritual objects used in the shrine &mdash; will be rebuilt using techniques that have been painstakingly passed down over generations. (AP)</figcaption></figure> Ise&#39;s inner shrine is dedicated to the sun goddess Amaterasu who has been enshrined for two millennia among the mountains of Mie prefecture, on the banks of the Isuzu River. Miori Inata, in a book based on a decade photographing Ise&#39;s reconstruction, offers some theories about the constant rebuilding, including that the 20-year-cycle matches the shelf-life of stored rice or the traditional two-decade phases that make up a human lifespan &mdash; birth to adulthood, adulthood to middle age, middle age to death. Inata writes of the culminating rites marking a new shrine: &ldquo;I was greatly moved by the realization that what was transpiring before my eyes were precisely the same ceremonies that were performed 1,300 years ago, every 20 years since, and will continue to unfold again and again in the future.&quot; The rebuilding was stopped only twice, during the civil wars of the 15th and 16th centuries, and after World War II, according to Yukio Lippit, a professor of art history and architecture at Harvard. &ldquo;Ise is unique because of attrition &mdash; renewal cycles are difficult to maintain &mdash; and because of the vagaries of history; many other shrines that once underwent regular rebuilding have stopped doing so,&rdquo; Lippit said.Priests ask mountain deities for permission to fell trees During a recent downpour, priests in starched robes banged drums and marched to Ise&#39;s inner shrines for prayers marking the beginning of the age-old rebuilding process. &ldquo;The world where we live and the mountain realm are separate, distinct worlds. Therefore, when people go onto the mountain to cut trees or gather plants, they must first receive permission from the mountain deities,&quot; according to Okada, the historian. Thousands gather to see the rebuilding ceremonies, part of about 7 million pilgrims a year who converge on the shrine, which has long been the polestar for Shinto devotees. Japan&rsquo;s indigenous Shinto faith, which also acts as a cultural connection for family and community, is largely rooted in animism. In Shinto there are thousands of &ldquo;kami,&rdquo; or spirits, that inhabit the world. While Ise thrives, the number of Shinto shrines has plummeted in recent decades as Japan&rsquo;s population shrinks and young people increasingly move from the countryside to megacities. &ldquo;You can count with one hand the number of times you&rsquo;ll witness something like this in your lifetime, so I really felt it was a rare and precious sight,&rdquo; said Yuto Nakase, who was viewing the ceremonies for the first time. At night the priests assemble with lanterns and march to the mountains for a secret purification rite for a sacred pillar that will be enshrined beneath the floor of the main sanctuary. The ceremony is off-limits to spectators, but shrine officials say that after the tree is cut down with a special axe, it is wrapped in white cloth, straw mats and reed mats. Visitors often mention Ise&rsquo;s deep sense of mystery. &ldquo;It doesn&rsquo;t say much, doesn&rsquo;t show much and doesn&rsquo;t offer much explanation. It&rsquo;s something you feel,&rdquo; Kawanishi, the Shinto priest, said of the shrine. Yoriko Maeda, who owns a local sake shop, recognizes a transformation the moment she crosses a bridge into the shrine grounds. &ldquo;My breathing changes,&rdquo; she said. &ldquo;It really feels different. What I sense also changes. The sounds, the wind or nature, seem to release my stress. &hellip; There&rsquo;s a kind of depth there that, for me, makes it a very comforting and pleasant space.&rdquo;Tree-cutting ceremonies show keen attention to detail In the forests of Nagano prefecture, a woodcutter takes the tip of a freshly felled tree and inserts it into the stump of another tree that has just been cut down. The assembled woodcutters then pray and bow together in front of the stump, commemorating these special cypresses that will be used to rebuild Ise. &ldquo;It honors the continuity of a tree&rsquo;s life and is a prayer for the regeneration of the forest,&rdquo; explains Soju Ikeda, who operates a local lumber company and manages a society for the preservation of traditional tree-felling skills. &ldquo;You take a moment to appreciate that trees are living beings and engrave that feeling into your heart.&rdquo; Over the following days, dozens of men dressed in traditional clothing drag the two-ton logs through the Isuzu River to the shrine, chanting rhythmically as they pull, knee-deep in the water. At Ise there are ten carpenters&rsquo; studios in permanent residence, plus others who are brought in, Lippit, the Harvard professor, said. The miscanthus reed thatch for the shrine&#39;s roofs is specially grown to a length of over 2 meters; this takes about eight years and is timed for the rebuilding. Cypress groves are specially planted at Ise for the constant construction, and their cultivation often exceeds individual human lifespans, with responsibilities for the trees passed from generation to generation. Asked about his relationship to the cypress trees that are cultivated for the shrine, Ikeda, the lumber expert, had a one-word answer: &ldquo;Deep.&rdquo; <figure class="fr-media"><img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/ed7b6761-ac81-4365-879b-cd67b017d9de-Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP) (2).jpg" alt="Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP)" style="max-width: 100%;" class="fr-fil fr-dib"><figcaption class="caption-cover-image text-sm text-gray-600 italic">Asked about his relationship to the cypress trees that are cultivated for the shrine, Ikeda, the lumber expert, had a one-word answer: &ldquo;Deep.&rdquo;(AP)</figcaption></figure> Forty years ago, when he was 24, he drove his grandfather to participate in the tree-felling ceremony. &ldquo;He said to me, &lsquo;Do you know that the trees cry?&rsquo; &quot;I answered, &lsquo;No way, how could a tree cry?&rsquo;&quot; But as they watched woodsmen chop down the cypress, &ldquo;the sound of the axes echoed across the mountains, and after about an hour, when the axe struck the core of the tree, the scent of the cypress filled the air, flowing like blood,&rdquo; he said. At the final axe stroke, as the wood snapped, &ldquo;the sound it made was like a shriek, a high-pitched &lsquo;keee&rsquo; sound, and then the tree fell with a thunderous thud. In that moment, I thought, &lsquo;Ah... it really cried.&rsquo; I felt as if the tree wept, mourning its own life, as if it knew its life was precious.&rdquo;

Priests and officials in the Shinto priesthood march during Yamaguchisai, a kickoff ceremony of the Shikinen Sengu ritual, which concludes in 2033 (AP

Every 20 years for 1,300 years, Japan's sacred Ise Jingu shrine is completely dismantled and rebuilt in a $390 million, nine-year project, using ancient woodworking techniques and 300-year-old cypress trees.

Japan’s sacred Shinto shrine rebuilt every 20 years for over 1,000 years

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ISLAMABAD: Japan&rsquo;s yen weakened and stocks surged on Monday after Prime Minister Shigeru Ishiba resigned, triggering a political shake-up and speculation that his successor could pursue more aggressive fiscal stimulus in the world&rsquo;s most indebted advanced economy.Ishiba stepped down on Sunday following a series of election defeats that cost his ruling coalition its majority in both houses of parliament. Citing public frustration over rising living costs, Ishiba announced that the Liberal Democratic Party (LDP) would hold an emergency leadership election, reportedly scheduled for October 4, according to broadcaster TBS.Leadership contest beginsFormer Foreign Minister Toshimitsu Motegi was the first to officially enter the race to succeed Ishiba. Speaking to reporters, the 69-year-old said, &ldquo;The LDP is facing its worst crisis since its founding. We must unite quickly to tackle our serious challenges at home and abroad and move the country forward.&rdquo;Chief Cabinet Secretary Yoshimasa Hayashi is also expected to run, according to a source close to the government.High-stakes candidatesThe race&#39;s front-runners are widely seen as LDP veteran Sanae Takaichi and Shinjiro Koizumi, the son of former Prime Minister Junichiro Koizumi, who previously served as agriculture minister under Ishiba. Takaichi, 64, could become Japan&rsquo;s first female leader, while Koizumi, 44, would be the youngest prime minister in the modern era.Neither has formally declared candidacy, but both placed second and third in the party&rsquo;s previous leadership contest in September 2024. &quot;All indications are that it will come down to them facing off against each other,&quot; said Jeffrey Hall, a lecturer in Japanese studies at Kanda University of International Studies.Market reactions and economic stakesTakaichi, known for her nationalist views and opposition to Bank of Japan (BOJ) interest rate hikes, is calling for expanded government spending to support Japan&rsquo;s fragile recovery. Her potential leadership has markets anticipating a pause or even reversal in monetary tightening efforts.As a result, money markets now see just a 20 percent chance of a BOJ rate hike by the end of October, down from 46 percent a week earlier, according to Reuters data.The Nikkei 225 stock index surged on the news, rising more than 800 points, or about 1.9 percent, in early trading Monday. Analysts said investors are attempting to position themselves ahead of potential economic policy shifts under a new administration.The yen, meanwhile, dropped sharply to the 148-per-dollar level, down from the mid-147 range late last week. Analysts attributed the decline to political uncertainty and the likelihood of more dovish fiscal and monetary policies.OutlookThis marks the latest political upheaval in Japan&rsquo;s already volatile landscape. With the leadership election looming, global investors and domestic stakeholders alike are watching closely to see which direction the country&rsquo;s next government will take and how it could shape Japan&rsquo;s economic and geopolitical future.

Former Prime Minister Ishiba resigns after election losses, sparking a leadership race. The yen drops amid economic uncertainty, while contenders Takaichi and Koizumi emerge as key figures.

Articles tagged with "Japan"