Japan

Next week, it's all central banks. Interest rate-setters in Tokyo, Washington and London are growing more nervous due to the Middle East war escalate. Oil prices have returned to $100. Tariffs from the United States are now back on the list of worries for markets that worry about inflation and growth risks due to war. Rae Wee, Dhara Ranasinghe and Samuel "Indyk" and Alun John are in London. Lewis Krauskopf is in New York. DOUBLE TROUBLE Investors are now watching two chokepoints for energy shipping to see how much oil and natural gas comes out of the Middle East. Houthi...

Seven & i shares rose 3% on Friday in Tokyo after the Japanese retailer announced that it is in talks to buy a stake from Polish convenience store operator Zabka Group. Nikkei reports that the '7-Eleven owner may consider acquiring Zabka share held by funds. The investment is likely to be several hundred billion dollars (several billion yen). The deal would expand Seven & i’s reach beyond its strongholds of Japan and North America to Eastern Europe. This is part of the retailer’s efforts to grow under the leadership Stephen Dacus. Naoshi Matsumoto is an analyst with Yamawa Securities. He...

Two sources with knowledge of the matter confirmed on Wednesday that China's Zhenhua Oil had booked to load 2 million barrels in Saudi crude for August. This is a sign that a new?joint venture? refinery between China and Saudi Arabia will soon begin operations. The crude will be supplied to the newly built 300,000-barrel-per-day Huajin Aramco Petrochemical Co (HAPCO) refinery in northeastern China's Liaoning province, the sources said. HAPCO was formed by Saudi Aramco, Norinco Group (a Chinese state-owned conglomerate) and Panjin Xincheng Industrial Group. HAPCO has delayed its start-up to September or even October due to disruptions in Middle...

Bloomberg News reported that SoftBank 'Corp and mobile payment operator PayPay were?in discussions to invest in retail juggernaut Seven & i Holdings. Bloomberg reported that the investment is likely to 'total several hundred billion yen.' Sumitomo Mitsui Card - a division of Sumitomo Mitsui Financial Group - may also be a shareholder. Could not verify the report immediately. SoftBank, Seven & i PayPay, SMFG and SMFG declined comment. Seven & i operates 7-11 stores around the world, with Japan and America as its two largest markets. The investment would be a great boost to the embattled 'Seven & i', who...

According to sources in the trading world, India's Bharat Oil Corp and Japan's Taiyo Oil purchased 'crude' from the United States this week, as refiners sought to diversify their supplies amid the Middle East conflict. Four sources claim that BPCL purchased West Texas Intermediate crude oil from Vitol. The refiner has booked an Aframax Tanker that can?carry up to 600,000.0 barrels of crude oil, according to two of the witnesses. They added that the oil was purchased at a price premium of?around 6 per barrel over dated Brent. A separate trader reported that Taiyo Oil purchased 2 million barrels for...

Saudi Aramco has cut its crude oil price for Asia, for August-loading shipments. This move appeared to signal an intention to regain market shares and recover volumes following the Iran War. Even the record-breaking 'August official selling price' (OSP), may not be sufficient, since crude oil from other Middle East producers and exporters from Africa and the Americas are likely to remain more competitive. Aramco, 'the world's largest oil exporter', has set its OSP at a $1.50 discount to the regional benchmark of Oman/Dubai for August. It was the largest drop in record since 2003, with a $11 reduction from...

India and Japan signed pacts to enhance their cooperation in metals, energy and artificial intelligence on Thursday, Indian Prime Minister Narendra Modi announced after his talks with Japanese counterpart Sanae Takaichi. Takaichi has been in New Delhi for a three-day trip as the two Asian partners celebrate their 16th annual summit. Modi told reporters that the convergence of Japan’s precision technology with India’s software capabilities would give global AI development a new vigor and strength. According to Indian government statistics, bilateral trade between India and Japan reached $27.5 billion during the fiscal year 2025/26. Japanese investment in India was $3.2...

Reliance Jio Platforms, owned by Indian billionaire MukeshAmbani, filed?regulatory documents for an IPO that would raise $3.8 billion. This is the largest-ever stock offer in India. The National Stock Exchange of India is preparing to launch another IPO, which will likely be worth $3.3 billion. The five biggest Indian IPOs so far: HYUNDAI MOTOR INDIANA In October 2024, Hyundai, India's largest passenger vehicle manufacturer and the third-largest carmaker in the world, raised $2.95 billion in India's largest-ever IPO. The South Korean parent company of the manufacturer sold a 17.5% share in a "pure offer for sale", where existing shareholders sold...

The National Stock Exchange of India filed draft papers to?along-delayed listing? that will be one of the two mega initial public offerings in India this year. Alongside billionaire Mukesh?Ambani's Reliance Jio. NSE's IPO will likely?be worth $3.3 billion based on a?pricing of its shares in the private market, and it comes?after...years of regulatory delay. As part of this issue, existing investors will sell 6% equity in the company. This will be an offer-for sale with no new equity raised. Ambani’s AI-to Telecoms arm Reliance Jio Platforms, is also preparing for an IPO that could be the largest ever in India....

After the U.S. and Iran deal to end the Middle East conflict, spot premiums for crude oil in Asia are back to their pre-war level. However, caution over how soon normal shipping will resume is keeping the oil markets afloat. Prices fell across the board after U.S. president Donald Trump announced that a preliminary deal had been signed. Details have not yet been released, and the U.S. as well as Iran say that a permanent ceasefire is still being negotiated. Dubai's premium for swaps on Middle East crude returned to its pre-war level of $2.06 a barrel on Monday. This...

Saudi Arabian crude oil sales to China will likely remain at record lows this month as the high 'prices' in the wake of the U.S. and Israeli war on Iran continue to impact demand. Market participants closely monitor the allocations as a measure of Chinese demand. They indicate that refiners are reluctant to import barrels at high prices after run cuts, and because they have exhausted their domestic stocks. Saudi Aramco will ship 12 million barrels to China customers for July loading. This is about 387.096 barrels a day. Sources'requested anonymity because they weren't authorized to speak with the media....

Iran's ambassador in Moscow was quoted on Monday as saying that the Strait of Hormuz would be open, but with new?conditions set by Iran? and?Oman?, including a?transit fee. The U.S. and Israeli war?on Iran 'has largely reduced oil flows through the strait. Before the conflict, one-fifth the world's crude oil passed through the strait. Recently, several tankers left the Gulf. However, oil and LNG flows remain severely constrained. In an interview published Monday, Ambassador Kazem Jalali said that the strait would be opened, but new conditions would be set by the Iranians and Omanis. We understand that Iran, Oman and...

The Japanese government announced on Friday that an analysis of rare-earth-rich mud recovered from the deep seabed of a remote Pacific Island in early 'this year revealed that medium and heavy rare elements made up about 54% of the total rare earth content. The company did not reveal the exact size or deposit of the sand, claiming that the sampling was too limited and geographically restricted to provide sufficient data. Chikyu is a Japanese scientific drilling ship that completed a one-month mission near Minamitori Island in February, located about 1,900 kilometers (1,200 miles), southeast of Tokyo. This was the first...

Five sources said that Japanese aluminium buyers paid a premium of $395 per ton between July and September. This was the highest price since 2015. The U.S./Israeli war against Iran has squeezed the supply. Japan is the largest Asian importer and benchmark for the region. Its premiums on primary metals are set at a level that exceeds the London Metal Exchange cash price each quarter. The premiums agreed to are up from $350-$353 per ton in April-June, the third consecutive increase. This is the highest since $425 between January and March 2015. As tensions ease, producers cut their offers Sources...

Oliver Blume, the head of Volkswagen, is planning a historic overhaul to adapt to structural changes in the global automotive market. Rising Chinese competitors, tariffs, and weak demand for cars in Europe are all affecting its business model. The crisis has increased scrutiny on Europe's largest automaker. It has been struggling for years with a complex structural design, a weak share performance, and some stakeholders' resistance to painful costs cuts. PARALYSED CONGLOMERATED Volkswagen's "governance" and "structure and ownership" are unique to the auto industry. They combine powerful unions and the billionaire Porsche-Piech family, who control the majority of the voting...

The demand for gold in India increased slightly this week, as jewellery buyers were attracted by lower prices, despite caution. In China however, premiums eased. The price of gold in India fell to its lowest level since April 2, at 146.444 rupees for 10 grams, on Thursday. It is down 1.5% this week. Chanda Venkatesh said that the demand for gold increased after the recent price correction, especially jewellery buyers. Dealers quoted discounts Discounts of up to $35 per ounce, including 15% import duties and 3% sales taxes, compared to last week's discount of up to $87.5. Although jewellers are...

Jim Anderson, the CEO of Coherent, a chipmaker backed by Nvidia in an earnings call early in May, warned about a shortage of Indium Phosphide. A U.S. delegation of businessmen accompanied President Donald Trump to China. Three sources with knowledge of the matter said that Anderson's trip was to highlight the delays in China's licensing for the export of the high-speed optical chip needed in the manufacturing of AI data centres. According to two U.S. officials and a person who was briefed about the talks, the issue was also raised during the Seoul talks between the top 'trade negotiators' of...

Japan's Nikkei average fell on Wednesday as investors shifted away from high-flying technology stocks that are sensitive to energy prices. The 'benchmark' Nikkei 225 Index fell 1.1% to 64,700.89. This was a reversal of the 2.1% gain in the previous session. The Topix index fell 0.69% to 3,586.34. In retaliation to the?downing a military chopper, the United States launched strikes against Iran Tuesday, which has deepened doubts about a possible?peace agreement. The data showed that the Gulf Crisis caused wholesale Japanese inflation to accelerate to its fastest rate in three years. This added upward pressure to domestic bond yields. "Declines...

Three sources with knowledge of the matter said that Sumitomo Corp provided financing to buyers of its 54% stake in Madagascar’s Ambatovy Nickel operation. This helped the company exit the losing project. Three sources familiar with the matter said that Sumitomo Corp, which invested $3 billion over 20 years in Ambatovy and has incurred $2.5 billion cumulative losses, provided financing to buyers of its 54% stake in Madagascar's Ambatovy nickel operation, smoothing their exit from the loss-making project. Sumitomo funded this transaction, while still retaining certain nickel offtake rights. "It needed someone to solve the problem for them," said one...

This month, activist investors have made a record-breaking number of proposals for Japanese companies to vote on during their annual general meetings. They also include a growing call for executives to resign. The Tokyo Stock Exchange and regulators have been pushing Japanese companies for years to increase shareholder returns, invest in growth as well as win some big activist victories. According to the data compiled at Mitsubishi UFJ Trust Bank, as of June 3, 139 activist shareholder proposals were submitted for voting at AGMs. This is two more than in previous years. Most of the proposals were from foreign investors....

The?Nikkei?share average in Japan retreated for a second straight session on Friday after closing at an all-time high earlier this week, as momentum slowed down in the?hot technology sector. The Nikkei Index, the benchmark index, fell 1.3% and closed at 66588.12, posting a gain of 0.3% for the week. The Topix index, which is a broader measure of the market, fell 0.07% to 3,599.09. The Nikkei closed at a record high of 68.402.13 on Wednesday, and it has gained 34% this year. The Nasdaq, the tech-heavy stock market in the United States, closed lower. Overnight, Broadcom missed its revenue targets...

Gold demand in India was subdued as buyers were on the sidelines because of?volatile overseas prices. Premiums?in China also eased slightly. On Friday, the price of domestic gold was around 158.400 rupees for 10 grams. Dealers quoted discounts This week you can save up to $87 per ounce on official domestic prices, including 15% import duty and 3% sales tax. Last week, you could save up to $106 per ounce. The wedding season is coming to an end. The retail demand is continuing to moderate and jewellery stores are reporting lower footfall in the country, said a Mumbai bullion dealer...

China has blocked Japan from obtaining several rare earths, heavy materials, and other minerals for at least four months. This coincides with a dispute over Taiwan between the two nations, indicating that Beijing is using its control of critical minerals to gain diplomatic leverage. Japan is the second largest producer of rare-earth magnets outside of China, but, like the rest of the globe, it is largely dependent on Beijing to import certain heavy rare earths, which are used in magnets, aerospace, and defence as well as gallium. Chinese customs data show that since December, Chinese exports to Japan of rare...

This week, gold prices in India continued to be at a steep discount, due to price volatility, which dampened demand, while premiums in China were reduced. Dealers in India quoted discounts This week, you can save up to $78 per ounce on official domestic prices, including 15% import duty and 3% sales tax. That's a significant drop from the previous week when you could save up to $207 per ounce. Retail buyers are confused by the recent price fluctuations after the government increased import duty earlier in the month. "Most of them are waiting for the prices to come down,"...