Japan narrowly avoided a technical recession in the second half of last year, official data showed yesterday, but economists said the performance of the world’s No. 4 economy remains in the doldrums.
Meanwhile, Japanese equities slid the most since Oct. 4 last year, with both benchmarks declining more than 2 percent yesterday, as growing speculation the Bank of Japan (BOJ) would raise interest rates lifted the yen and hurt exporters.
GDP inched up 0.1 percent in the final quarter of last year from the previous three months, Japan’s Cabinet Office said.
Photo by Kazuhiro NOGI / AFP
This reversed an earlier preliminary estimate of a 0.1 percent contraction following a decline of 0.8 percent in the third quarter.
Technical recession is generally defined as two successive quarters of falling GDP.
However, the reading still fell short of 0.3 percent quarterly growth that economists had expected for the revision, a survey by Bloomberg News showed.
The change reflected upgraded corporate investment, estimated to have risen 2.0 percent compared with the original projection of a 0.1 percent contraction.
However, Japanese consumption, both in private and government sectors, contracted further than the earlier estimate.
The latest figures came as speculation swirls about when the BOJ might finally end its negative interest rate policy. This might come potentially as early as Tuesday next week at the central bank’s next meeting.
Expectations the BOJ would tweak policy were further fueled by reports that the bank is considering scrapping its yield curve control program, and that a rising number of policymakers are leaning toward ending negative rates due to expected larger wage increases this year.
Due to a stronger yen and a sell-off in tech shares, the TOPIX yesterday closed 2.2 percent lower at 2,666.83 in Tokyo, with 31 of 33 sub-sectors dropping, while the exporter-heavy Nikkei 225 declined 2.19 percent to 38,820.49, leading losses in Asia.
Additional reporting by Bloomberg
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective