Author: Elizabeth Beattie

Japan reacts to the news of Nippon Steel’s failed takeover of U.S. Steel with a mix of disappointment and resignation. Government officials like digital minister Taro Kono express concern over arbitrary interventions in business dealings, emphasizing the importance of market integrity. Kono, also a candidate for the next president of the ruling Liberal Democratic Party, highlights the need to prevent market distortion caused by external factors like labor union influence. Source link

Last Friday, Japanese stocks took a hard hit, wrapping up a tumultuous week in the financial markets with a nearly 6% selloff. This led to a day of recalibration and a growing sense of pessimism among investors. Shoki Omori, chief desk strategist at Mizuho Securities, commented on the situation, stating that while the government aimed for a stronger yen, they did not anticipate such a significant drop in equities. In less than a month, the 225-issue Nikkei average went from reaching all-time highs to experiencing a shocking downturn. It is now nearly 15% lower than its previous record high, marking…

Japan is currently experiencing a governance revolution, with two lesser-known firms taking center stage amidst ongoing boardroom battles. This shift in control of companies is causing a stir in the corporate world, drawing attention to M&A, activism defense, and corporate governance. Sebastian L. Fain, a partner at Freshfields, believes that proxy advisors are now in the spotlight, as companies navigate through these changes. These firms are playing a significant role in shaping the future of Japanese businesses, influencing decision-making processes and strategic directions. As the country embraces a new era of governance, the importance of these firms cannot be understated.…

Market confidence in the Bank of Japan’s commitment to tightening policy wavered, resulting in the yen hitting a 38-year low. Vague assurances from a government official about potential intervention failed to impress investors. Jason Wong, a senior markets strategist at BNZ Markets, highlighted the lack of intent by the BOJ to tighten policy significantly as a key factor driving down the yen’s value. He noted, “It’s fair to say that the BOJ’s policy stance is contributing to yen weakness.” The market’s response suggests a growing skepticism towards the BOJ’s ability to address the yen’s depreciation effectively. With concerns mounting, investors…

Chief Cabinet Secretary Yoshimasa Hayashi reassured the public that the recent fraudulent activity in the Japanese auto industry would have a minimal impact on the economy. He emphasized the government’s commitment to taking necessary measures to mitigate any economic damage caused by the data falsification revealed by five companies. In response to the discovery of shortfalls in their auto-testing procedures, Toyota and Mazda have temporarily halted production of four models. Toyota stopped manufacturing its Corolla Fielder and Corolla Axio models at Toyota Motor East Japan plants in Miyagi and Iwate prefectures. The production pause is expected to last until June…