People watch a television screen showing a news broadcast with file footage of a North Korean missile test, at a train station in Seoul on Sept. 12, 2024. North Korea fired multiple short range ballistic missiles into waters east of the Korean peninsula on September 12, Seoul’s military reported, days after the nuclear-armed North marked a state anniversary.
Jung Yeon-je | Afp | Getty Images
After North Korea fired several ballistic missiles toward the Sea of Japan, Japanese Prime Minister Fumio Kishida said Thursday that he “strongly condemns” the move, adding that Tokyo has already “lodged a protest” with the Hermit Kingdom.
“So far we have not confirmed any reports of any damages. Needless to say, the launch of ballistic missiles by North Korea is a violation of the UN Security Council resolutions,” Kishida said.
“We will continue to do our utmost to gather information and monitor the situation, and we will work closely through the Japan-U.S., as well as the Japan-US-South Korea alliances.”
North Korea fired several short-range ballistic missiles off its east coast towards the Sea of Japan Thursday morning local time, according to the South Korean Joint Chiefs of Staff.
Japan said the missiles “are believed to have fallen outside” of Japan’s exclusive economic zone, an area of the sea in which the coastal state claims the rights to conduct economic activity.
The missiles were launched from Pyongyang, and flew about 360 km, 224 miles, before landing in the East Sea, South Korea said in a statement.
This launch came days after North Korean leader Kim Jong Un said that the country will enforce a policy to boost its nuclear capabilities “exponentially,” according to the Korean Central News Agency, the state news agency of North Korea.
In a statement, the U.S. Indo-Pacific Command also condemned the launch, calling on North Korea to “refrain from further unlawful and destabilizing acts.”
“While we have assessed that this event does not pose an immediate threat to U.S. personnel, or territory, or to our allies, we continue to monitor the situation. The U.S. commitments to the defense of the ROK and Japan remain ironclad,” the U.S. Indo-Pacific Command added.
This was the first ballistic missile launch by North Korea in two months, local news reported. In early July, North Korea launched two ballistic missiles, one of which failed and possibly fell inland, according to South Korea’s military.
In recent years, North Korea has been ramping up their weapons testing efforts to combat what it calls a deepening U.S. military threat.
Kim said in a speech on Monday that his nation needs a tough military presence to counter “the various threats posed by the United States and its followers.”
(Bloomberg) — Stocks rallied, tracking gains in Asian markets as a tech-fueled rebound spread globally.
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Europe’s Stoxx 600 index jumped 1.2%, the most since mid-August, led by gains in the technology sector. Futures for the S&P 500 were up 0.2%. Treasuries were steady and the dollar was flat. The MSCI Asia Pacific Index climbed the most in almost a month, boosted by gains in the tech-heavy markets of Japan, South Korea and Taiwan.
Risk appetite has returned after the world’s largest technology companies spurred a stock-market bounce on Wall Street on Wednesday. Focus is also on the path for interest rates, with the European Central Bank poised to cut again on Thursday. US inflation data for August supported bets for a Federal Reserve rate cut next week, but fueled speculation officials will move gradually.
Traders have swung between optimism that the Fed will guide the US economy to a soft landing and fear that the central bank has left it too late to cut rates. While swaps have now priced in a 25 basis point rate reduction next week, debate over the path for further reductions continues, and some investors say markets have overpriced expectations.
“Stocks will probably rally more with a 25 bps cut than 50,” because the latter will signal weaker growth, Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs Group Inc., said on Bloomberg TV.
In corporate news, OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation. Nvidia Corp. Chief Executive Officer Jensen Huang said the limited supply of their products has frustrated some customers and raised tensions.
Alimentation Couche-Tard Inc. is discussing improving its takeover proposal for Seven & i Holdings Co. with the goal of convincing the Japanese convenience store operator to start engaging in discussions, people with knowledge of the matter said.
In Japan, the Nikkei index halted a seven-day losing streak as the US inflation print pulled the yen down from its strongest level against the dollar since December. A region-wide gauge of tech stocks rose more than 3% after Nvidia jumped 8.2% overnight, while Taiwan Semiconductor Manufacturing Co. was among top gainers on the regional index.
Oil extended gains from Wednesday as Hurricane Francine ripped through key oil-producing zones in the Gulf of Mexico, prompting traders to cover bearish bets. Gold traded above $2,515 per ounce.
Key events this week:
ECB rate decision, Thursday
US initial jobless claims, PPI, Thursday
Eurozone industrial production, Friday
Japan industrial production, Friday
U. Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 1.2% as of 8:11 a.m. London time
S&P 500 futures rose 0.1%
Nasdaq 100 futures rose 0.2%
Futures on the Dow Jones Industrial Average rose 0.1%
The MSCI Asia Pacific Index rose 1.5%
The MSCI Emerging Markets Index rose 1.3%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1010
The Japanese yen fell 0.3% to 142.79 per dollar
The offshore yuan was little changed at 7.1282 per dollar
The British pound was little changed at $1.3045
Cryptocurrencies
Bitcoin rose 0.8% to $57,932.51
Ether rose 0.5% to $2,359.36
Bonds
The yield on 10-year Treasuries advanced two basis points to 3.67%
Germany’s 10-year yield advanced two basis points to 2.13%
Britain’s 10-year yield advanced two basis points to 3.78%
Commodities
Brent crude rose 1.4% to $71.59 a barrel
Spot gold rose 0.1% to $2,515.43 an ounce
This story was produced with the assistance of Bloomberg Automation.
TOKYO (AP) — One by one, the students, lawyers and others filed into a classroom in a central Tokyo university for a lecture by a Chinese journalist on Taiwan and democracy — taboo topics that can’t be discussed publicly back home in China.
“Taiwan’s modern-day democracy took struggle and bloodshed, there’s no question about that,” said Jia Jia, a columnist and guest lecturer at the University of Tokyo who was briefly detained in China eight years ago on suspicion of penning a call for China’s top leader to resign.
He is one of tens of thousands of intellectuals, investors and other Chinese who have relocated to Japan in recent years, part of a larger exodus of people from China.
Their backgrounds vary widely, and they’re leaving for all sorts of reasons. Some are very poor, others are very rich. Some leave for economic reasons, as opportunities dry up with the end of China’s boom. Some flee for personal reasons, as even limited freedoms are eroded.
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EDITOR’S NOTE: This story is part of the China’s New Migrants package, a look by The Associated Press at the lives of the latest wave of Chinese emigrants to settle overseas.
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Chinese migrants are flowing to all corners of the world, from workers seeking to start businesses of their own in Mexico to burned-out students heading to Thailand. Those choosing Japan tend to be well-off or highly educated, drawn to the country’s ease of living, rich culture and immigration policies that favor highly skilled professionals, with less of the sharp anti-immigrant backlash sometimes seen in Western countries.
Jia initially intended to move to the U.S., not Japan. But after experiencing the coronavirus outbreak in China, he was anxious to leave and his American visa application was stuck in processing. So he chose Japan instead.
Chinese journalist Jia Jia talks with a friend at a bookstore in Tokyo, Japan, Tuesday, Aug. 20, 2024. (AP Photo/Shuji Kajiyama)
Chinese journalist Jia Jia poses for a photo in front of a bookstore in Tokyo, Japan, Tuesday, Aug. 20, 2024. (AP Photo/Shuji Kajiyama)
“In the United States, illegal immigration is particularly controversial. When I went to Japan, I was a little surprised. I found that their immigration policy is actually more relaxed than I thought,” Jia told The Associated Press. “I found that Japan is better than the U.S.”
“The U.S. is shutting out those Chinese that are friendliest to them, that most share its values,” said Li Jinxing, a Christian human rights lawyer who moved to Japan in 2022.
Li sees parallels to about a century ago, when Chinese intellectuals such as Sun Yat-sen, the founding father of modern China, moved to Japan to study how the country modernized so quickly.
“On one hand, we hope to find inspiration and direction in history,” Li said of himself and like-minded Chinese in Japan. “On the other hand, we also want to observe what a democratic country with rule of law is like. We’re studying Japan. How does its economy work, its government work?”
Over the past decade, Tokyo has softened its once-rigid stance against immigration, driven by low birthrates and an aging population. Foreigners now make up about 2% of its population of 125 million. That’s expected to jump to 12% by 2070, according to the Tokyo-based National Institute of Population and Social Security Research.
Chinese are the most numerous newcomers, at 822,000 last year among more than 3 million foreigners living in Japan, according to government data. That’s up from 762,000 a year ago and 649,000 a decade ago.
A sign in Chinese says ” I miss you in Ikebukuro” at Ikebukuro district, popular among Chinese living in Japan Wednesday, Sept. 4, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A canteen popular among Chinese living in Japan is seen Wednesday, Sept. 4, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A commuter rides past a billboard of a Sichuan restaurant, popular among Chinese living in Japan, is seen Wednesday, Sept. 4, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
In 2022, the lockdowns under China’s “zero COVID” policies led many of the country’s youth or most affluent citizens to hit the exits. There’s even a buzzword for that: “runxue,” using the English word “run” to evoke “running away” to places seen as safer and more prosperous.
For intellectuals like Li and Jia, Japan offers greater freedoms than under Chinese leader Xi Jinping’s increasingly repressive rule. But for others, such as wealthy investors and business people, Japan offers something else: property protections.
A report by investment migration firm Henley & Partners says nearly 14,000 millionaires left China last year, the most of any country in the world, with Japan a popular destination. A major driver is worries about the security of their wealth in China or Hong Kong, said Q. Edward Wang, a professor of Asian studies at Rowan University in Glassboro, New Jersey.
“Protection of private property, which is the cornerstone of a capitalist society, that piece is missing in China,” Wang said.
The weakening yen makes buying property and other local assets in Japan a bargain.
Du first visited Japan when he was 26. There was no intention to relocate at the time, but the doors opened when he was invited to join the Tetsuya Kumakawa’s ballet company with his wife. AP video by Mayuko Ono
“If you are just going to Japan to preserve your money,” Wang said, “then definitely you will enjoy your time in Japan.”
Dot.com entrepreneurs are among those leaving China after Communist Party crackdowns on the technology industry, including billionaire Jack Ma, a founder of e-commerce giant Alibaba, who took a professorship at Tokyo College, part of the prestigious University of Tokyo.
So many wealthy Chinese have bought apartments in Tokyo’s luxury high-rises that some areas have been dubbed “Chinatowns,” or “Digital Chinatowns” — a nod to the many owners’ work in high-tech industries.
“Life in Japan is good,” said Guo Yu, an engineer who retired early after working at ByteDance, the parent company of TikTok.
Guo doesn’t concern himself with politics. He’s keen on Japan’s powdery snow in the winter and is a “superfan” of its beautiful hot springs. He owns homes in Tokyo, as well as near a ski resort and a hot spring. He owns several cars, including a Porsche, a Mercedes, a Tesla and a Toyota.
Guo Yu, an engineer who retired early after working at ByteDance, the parent company of hit video-sharing app TikTok, and who lives in Japan, speaks during an interview with The Associated Press in Tokyo, April 9, 2024. (AP Photo/Yuri Kageyama)
Guo keeps busy with a new social media startup in Tokyo and a travel agency specializing in “onsen,” Japan’s hot springs. Most of his employees are Chinese, he said.
“It is crucial that Japan becomes an attractive country for foreign talent so they will choose to work here,” Japanese Prime Minister Fumio Kishida said earlier this year, announcing efforts to relax Japan’s stringent immigration restrictions.
That kind of opportunity is exactly what Chinese ballet dancer Du Hai said he has found. Leading a class of a dozen Japanese students in a suburban Tokyo studio one recent weekend, Du demonstrated positions and spins to the women dressed in leotards and toe shoes.
Du Hai, center, a Chinese ballet dancer who has made Japan his home, is reflected on a mirror as he teaches a class at a studio in Ichikawa, east of Tokyo, Japan, Saturday, Aug. 10, 2024. (AP Photo/Shuji Kajiyama)
Du Hai, center, a Chinese ballet dancer who has made Japan his home, teaches a class at a studio in Ichikawa, east of Tokyo, Japan, Saturday, Aug. 10, 2024. (AP Photo/Shuji Kajiyama)
Du Hai, a Chinese ballet dancer who has made Japan his home, speaks during an interview with the Associated Press, at a studio in Ichikawa, east of Tokyo, Japan, Saturday, Aug. 10, 2024. (AP Photo/Shuji Kajiyama)
Du was drawn to Japan’s huge ballet scene, filled with professional troupes and talented dancers, he said, but worried about warnings he got about unfriendly Japanese.
That turned out to be false, he said with a laugh. Now, Du is considering getting Japanese citizenship.
“Of course, I enjoy living in Japan very much now,” he said.
Alvin Tan, Head of Asia FX Strategy at RBC Capital Markets cites elevated inflation rates and slowing growth in Australia as proof that the easing path of the RBA will be more gradual, with rate cuts starting next year. Additionally, he examines the BOJ’s policy normalization path, saying that a rate hike would help to strengthen the yen in the long-term, but it would not be a “smooth ride” higher.
Japan, for example, makes it relatively easy to export dual-use technologies to the United States and Europe, and vice versa. Because they are recognized as trusted countries under Japanese export law, companies in those states are generally free to use Japanese dual-use technology to produce arms—and to, in turn, export those arms to other states (subject to their own export controls).
This, itself, has drawn the BDS activists’ ire: They want FANUC to end its relationship with American defense contractors like General Dynamics and Lockheed Martin, which sell considerable advanced weaponry to Israel. “We demand that such business relationships be immediately terminated and that the two companies never do business with each other again,” Imano said in June. But the activists go further, arguing that FANUC is, despite what it says publicly, actually doing business with Israeli defense firms.
“FANUC sells its robots and provides maintenance and inspection services to Israeli military companies such as Elbit Systems,” Imano claimed.
FANUC has denied this charge. “When we sell products to Israel, we carry out the necessary transaction screening in accordance with Japan’s Foreign Exchange and Foreign Trade Act, confirm the user’s business activities and intended use, and do not sell to Israel if the products are for military use,” the company wrote to HuffPost.
The company added that, after reviewing their records of the past five years, “we have not sold any products for military use to the Israeli companies Elbit Systems, IAI, BSEL, Rosenshine Plast, or AMI from our company or our European subsidiary. We have also not sold any products for military use to other Israeli companies from our company or our European subsidiary.” The company identified one instance where one of their robotic arms had been sold to an Israeli company that produces military hardware “after confirming that the machine was to be used for civilian medical purposes.”
At the same time, the company admitted that when they sell through intermediaries, of which Israel has several, they are not always able to guarantee “who the final customer is.”
There is, however, ample evidence that suggests FANUC arms have made their way into the Israel defense manufacturing sector. Multiple job listings posted by Elbit Systems, the primary domestic supplier of the Israel Defense Forces, list “knowledge of FANUC … controls” as either an advantage to job applicants or a requirement. One such job listing, from June, comes from Elbit Cyclone, the division that won a contract to produce fuselage components for the F-35 fighter jet. In January, Israel’s Ministry of Defense published a video showing a FANUC robotic arm at an Elbit factory, handling munitions.
Another Israeli company, Bet Shemesh Engines (BSEL), more than a decade ago created marketing videos and uploaded photos to their company website featuring the FANUC robotic arms. The CV of a former employee suggests the company used FANUC robotics to assemble aircraft engines, which may be used for civilian rather than military purposes. Bet Shemesh counts the Israeli Air Force as a major client.
Today’s featured guest submitted the most succinct bio we’ve had the pleasure of receiving so far: “I studied sculpture / went to Japan / discovered gardens and tree pruning / founded Niwaki.” To that we add: became a master of and missionary for cloud pruning (the art of Japanese topiary); introduced Japanese tools, including the iconic tripod ladder, to Western gardeners; and grew a brand that has, since its founding in 2007, become synonymous with Japanese craftsmanship and style.
Contrary to the Quick Takes spirit, we asked Jake Hobson to elaborate on his answer: “When I first got interested in shaping and pruning I was in Japan. I kept seeing these amazing trees that looked so different to ours, and it took me a while to realise that it wasn’t because they were different species, but because they’d been pruned that way. Pruned to look like trees! I think that’s a very Japanese thing, refining something natural, reducing it to its essence. Since then, my passion has grown beyond the conceptual, to the practical. I love the physical side of pruning, both the immediacy of clipping—being in the moment—and the longterm consequences of what a single decision or cut can do. Generally, I’m quite impatient, but when it comes to plants, I love the sense of time involved.”
Read on for Jake’s thoughts on good conifers versus bad conifers, his favorite and least favorite plants (both begin with “ph”), and more.
Photography by Jake Hobson, unless otherwise noted.
Above: Jake at work in his own garden. Photograph by Jake’s son, Digby Hobson.
Your first garden memory:
Playing in the sandpit with a huge spade. I grew up in Hampshire [in the UK] and actually have more memories of the woods than the garden. Campfires. The smell of wild garlic amongst coppiced hazel. The dark stillness of ivy covered understory beneath beech and yews.
Above: My mother’s old garden, with clipped Phillyrea, Rhamnus, bay laurel and boxwood, sitting with Eleagnus, Eriobotrya and yucca. “She planted, I pruned and shaped over 20 years,” he shares.
Sculpture. Nature. Jaketure.
Plant that makes you swoon:
Anything laden with ripe fruit. Wineberries in particular, and figs.
Plant that makes you want to run the other way:
Red phormiums.
Favorite go-to plant:
Phillyrea latifolia. Left alone it makes the most beautiful small evergreen tree. Fiddled with, it’s brilliant for topiary, cloud pruning, and clipped shapes.
Hardest gardening lesson you’ve learned:
I’m still learning it: Soil prep really does matter.
Unpopular gardening opinion:
Above: “We recently built a new office extending out into the garden, so this view is only one year old, using one of my favourite trees, Cryptomeria japonica, pruned in the Daisugi style (you can learn about them in our upcoming Niwaki Field Report). They need a year or two to adjust to their new home, the box on the bank needs to settle in and fill out (newly planted box often looks poorly for the first year), but a pick and mix of seeds from Sarah Raven makes it all look nice.
Conifers are great. Just get the right ones. We moved into a house that was called “Conifers.” I cut down all sorts of classic, ’70s style conifers and promptly replanted with all my favourites. Cryptomeria japonica, Pines thunbergii, Podocarpus macrophyllus—proper tree forms.
Gardening or design trend that needs to go:
The mess outside new housing developments. Photinias, phormiums, spirals, and worst of all, chestnut cleft fences.
George Efstathopoulos of Fidelity International says that while they are becoming more neutral on the broader Japanese market, mid-cap and bank stocks are becoming more attractive.
LA PLATA, Argentina (AP) — Agustin Creevy is set to end a 19-year international career after Argentina plays Australia in the Rugby Championship in his La Plata hometown this weekend.
Creevy informed the Pumas of his plans this week, and the 39-year-old hooker was included in the reserves for Saturday’s test.
Since his test debut in 2005 against Japan on the wing, Creevy has set Argentina records for the most tests (109), the most as captain (51) and the most appearances in the Rugby World Cup (22). He led the team to the 2015 World Cup semifinals.
“I am leaving after having given it my all,” he told ESPN. “I have played to the utmost, and it is time to step aside because it is best for the team, and, like I always say, the team comes first.
“I have many mixed feelings. Of sadness, of joy and, above all, of immense pride for having worn this shirt for a long time. All the decisions and actions I made, everything I went through was to wear the Los Pumas shirt that I love so much.”
The Wallabies later announced a starting lineup with yet another skipper. Harry Wilson will lead the side against Argentina — Australia’s eighth captain in 15 tests and the fourth under Joe Schmidt in five matches this season.
It allows Schmidt to start his most damaging props, Taniela Tupou and Angus Bell, with Ala’alatoa providing leadership from the bench.
No. 8 Wilson has played 15 tests and faces a difficult leadership assignment against a Pumas team that upset the All Blacks in Wellington in the first round of the tournament.
Argentina coach Felipe Contepomi said Creevy’s decision didn’t play any part in giving him a sendoff in his hometown.
“This is the national team, the best players play. What we consider to be the best 23 for each match,” Contepomi said. “It is a blessing for him to have been able to make the decision to retire and not to be retired by rugby. We support him in his decision. He will bear his emotions inside. This day was going to come at some point, it was not going to last forever.”
Creevy wasn’t expected to play test rugby again after his fourth World Cup last November in France, where the Pumas reached another semifinal. But an injury to Julian Montoya prompted Contepomi to recall Creevy for the tests in New Zealand. He came off the bench and scored the go-ahead try against the All Blacks in a stunning 38-30 win in Wellington three weeks ago.
Montoya, who succeeded Creevy as the starting hooker and captain, praised his former mentor.
“I debuted when he was captain. We have been together for 11 years, competing for a position,” Montoya said. “We have a very nice relationship and I thanked him for how he sponsored me in my beginnings. I couldn’t have chosen anyone better for that and I am grateful.”
The Pumas made three changes after losing the second match to the All Blacks 42-10 in Auckland two weeks ago.
Joel Sclavi replaced tighthead Lucio Sordoni, who has gone to France to complete his transfer to Racing 92, Franco Molina was back in the second row and bumped Marcos Kremer to his natural position on the flank, and Santiago Cordero was on the wing for the injured Matias Moroni.
On a bench split 6-2, forwards Guido Petti and Santiago Grondona could make their first test appearances this year.
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Argentina: Juan Cruz Mallia, Santiago Cordero, Lucio Cinti, Santiago Chocobares, Mateo Carreras, Santiago Carreras, Gonzalo Bertranou; Juan Martin Gonzalez, Marcos Kremer, Pablo Matera, Pedro Rubiolo, Franco Molina, Joel Sclavi, Julian Montoya (captain), Thomas Gallo. Reserves: Agustin Creevy, Mayco Vivas, Eduardo Bello, Guido Petti, Tomas Lavanini, Santiago Grondona, Lautaro Bazan Velez, Tomas Albornoz.
Australia: Tom Wright, Andrew Kellaway, Len Ikitau, Hamish Stewart, Marika Koroibete, Noah Lolesio, Jake Gordon; Harry Wilson (captain), Carlo Tizzano, Rob Valetini, Lukhan Salakaia-Loto, Nick Frost, Taniela Tupou, Matt Faessler, Angus Bell. Reserves: Josh Nasser, Isaac Kailea, Allan Alaalatoa, Jeremy Williams, Langi Gleeson, Tate McDermott, Ben Donaldson, Max Jorgensen
Stroke had been a leading cause of death in Japan, but the mortality rate decreased sharply as they moved away from their traditional diets and started eating more like those in the West. Did the consumption of all that extra meat and dairy have a protective effect? After all, their intake of animal fat and animal protein was going up at the same time their stroke rates were going down, as shown below and at 0:35 in my video.
Commented a noted Loma Linda cardiology professor, “Protection from stroke by eating animal foods? Surely not!…Many vegetarians, like myself, have almost come to expect the data to indicate that they have an advantage, whatever the disease that is being considered. Thus, it is disquieting to find evidence in a quite different direction for at least one subtype of stroke.”
Can dietary saturated fat, like that found in meat and dairy, be beneficial in preventing stroke risk? There appeared to be a protective association—but only in East Asian populations, as you can see below and at 1:11 in my video.
High dietary saturated fat was found to be associated with a lower risk of stroke in Japanese but not in non-Japanese. So, what was it about the traditional Japanese diet that the westernization of their eating habits made things better when it came to stroke risk? Well, at the same time, their meat and dairy intake was going up, and their salt intake was going down, as you can see below and at 1:40.
The traditional Japanese diet was packed with salt. They had some of the highest salt intakes in the world, about a dozen spoonsful of salt a day. Before refrigeration became widely available, they ate all sorts of salted, pickled, and fermented foods from soy sauce to salted fish. In the areas with twice the salt intake, they had twice the stroke mortality, but when the salt intake dropped, so did the stroke death rates, because when the salt consumption went down, their blood pressure went down, too. High blood pressure is perhaps “the single most important potentially modifiable risk factor for stroke,” so it’s no big mystery why the westernization of the Japanese diet led to a drop in stroke risk.
When they abandoned their more traditional diets, their obesity rates went up and so did their diabetes and coronary artery disease, but, as they gave up the insanely high salt intake, their insanely high stroke rates correspondingly fell.
Stomach cancer is closely associated with excess salt intake. When you look at their stomach cancer rates, they came down beautifully as they westernized their diets away from salt-preserved foods, as you can see in the graph below and at 2:50 in my video.
But, of course, as they started eating more animal foods like dairy, their rates of fatal prostate cancer, for example, shot through the roof. Compared to Japan, the United States has 7 times more deaths from prostate cancer, 5 times more deadly breast cancer, 3 times more colon cancer and lymphoma mortality, and 6 to 12 times the death rate from heart disease, as you can see in the graph below and at 3:15 in my video. Yes, Japanese stroke and stomach cancer rates were higher, but they were also eating up to a quarter cup of salt a day.
That would seem to be the most likely explanation, rather than some protective role of animal fat. And, indeed, it was eventually acknowledged in the official Japanese guidelines for the prevention of cardiovascular disease: “Refrain from the consumption of large amounts of fatty meat, animal fat, eggs, and processed foods…”
Now, one of the Harvard cohorts found a protective association between hemorrhagic strokes and both saturated fat and trans fat, prompting a “sigh of relief…heard throughout the cattle-producing Midwestern states,” even though the researchers concluded that, of course, we all have to cut down on animal fat and trans fat for the heart disease benefit. Looking at another major Harvard cohort, however, they found no such protective association for any kind of stroke, and when they put all the studies together, zero protection was found across the board, as you can see below and at 4:07 in my video.
Observational studies have found that higher LDL cholesterol seems to be associated with a lower risk of hemorrhagic stroke, raising the possibility that cholesterol may be “a double-edged sword,” by decreasing the risk of ischemic stroke but increasing the risk of hemorrhagic stroke. But low cholesterol levels in the aged “may be a surrogate for nutritional deficiencies…or a sign of debilitating diseases,” or perhaps the individuals were on a combination of cholesterol-lowering drugs and blood thinners, and that’s why we tend to see more brain bleeds in those with low cholesterol. You don’t know until you put it to the test.
Researchers put together about two dozen randomized controlled trials and found that the lower your cholesterol, the better when it comes to overall stroke risk, with “no significant increase in hemorrhagic stroke risk with lower achieved low-density lipoprotein [LDL] cholesterol levels.”
The genetic data appear mixed, with some suggesting a lifetime of elevated LDL would give you a higher hemorrhagic stroke risk, while other data suggest more of that double-edged sword effect. However, with lower cholesterol, “any possible excess of hemorrhagic [bleeding] stroke is greatly outweighed by the protective effect against ischaemic stroke,” the much more common clotting type of stroke, not to mention heart disease. It may be on the order of 18 fewer clotting strokes for every 1 extra bleeding stroke with cholesterol-lowering.
Does this explain the increased stroke risk found among vegetarians? Hemorrhagic stroke is the type of stroke that appeared higher in vegetarians, but the cholesterol levels in vegans were even lower, and, if anything, vegans trended towards a higher clotting stroke risk, so it doesn’t make sense. If there is some protective factor in animal foods, it is to be hoped that a diet can be found that still protects against the killer number one, heart disease, without increasing the risk of the killer number five, stroke. But, first, we have to figure out what that factor is, and the hunt continues.
Aren’t there studies suggesting that saturated fat isn’t as bad as we used to think? Check out:
Just like the traditional Japanese diet had a lot going for it despite having high sodium as the fatal flaw, what might be the Achilles’ heel of plant-based diets when it comes to stroke risk?
This is the seventh video in this stroke series. See the related posts below for the others.
Growing up in Nara, Japan, surrounded by tea fields, matcha has always been a part of my life. The full aroma and the deep bitter and sweet umami taste of this vivid green tea evokes so much nostalgia for me.
When I was in high school, I started taking formal tea ceremony lessons. It was a highlight of my week. Our tea master would always give my classmates and me delicious, seasonal Japanese wagashi (sweets)and flowers, and she invited us to watch and help during her tea ceremony at a prestigious temple in Kyoto.
I still regularly perform Chado, the traditional Japanese tea ceremony for preparing green tea. I stopped for a time when I moved to the United States, but resuming the practice here in New York has provided a valuable sense of community for me.
More than anything, I associate matcha with the wisdom of my elders. My 99-year-old aunt and my 98-year-old mentor, who I call Papa-san, have been making their own matcha for most of their lives. I’ve even inherited some of their matcha bowls and utensils.
Matcha is my No. 1 beverage for boosting longevity, and I drink it every day.
Here I am offering a tea ceremony and lecture for the community in Beacon, New York.
If you ever have the opportunity to attend a Chakai (tea gathering) or be served in a formal setting, there are several rules to follow — these are some key ones.
When you are served, say “Okemae chodai Itashimasu,” which means “Thank you for serving tea to me.” Then pick up the bowl, hold it with both hands, take a moment to look at the color and enjoy.
My daily matcha with my 99-year-old aunt’s tea bowl.
Photo: Michiko Tomioka
After you finish, once again, look at the bowl and carefully hold it in both hands. Then return it back to the place where you were served.
The most important thing is to express your appreciation, relax and embrace the moment.
My day starts with offering a prayer and a bowl of matcha to my ancestors.Then I make a bowl for myself and one for my son before he goes to work as a physical therapist. This daily ritual for performing Chado fills me with such a sense of peace.
Here are the steps I take:
I boil approximately two ounces of water.
I place half a cup of hot water into my bowl and with my chasen (bamboo tea whisk), I swirl the water several times to purify my tools. Takayama, a village in my home of Nara, is famous for making chasen.
I drain the water and then wipe everything with a clean cloth or paper towel.
With my chashaku (traditional bamboo tea scoop), I measure out two grams of green matcha powder and place it on the bottom of the bowl.
I slowly pour approximately 60 ml of hot water over the powder and enjoy the emerging aroma.
I hold the bowl carefully with my left hand and whisk, making sure to hold the chasen vertically, for about 20 seconds. I call this my “gift of Zen moment.”
In Japan, making my own tea scoop at Master Tango Tanimura’s place in Takayama, Nara. The Tanimura family has been producing tea whisks for nearly 500 years.
Photo: Michiko Tomioka
During the summer, I will sometimes transfer the prepared tea into a portable thermos and add about half a cup of crushed ice for a refreshing and cool to-go treat.
One of my favorite makers of matchais the Ippodo Tea Company. It is based in Kyoto, and has been operational since the 1700s. I also recommend using bamboo tea whisks, which you can often find in Asian grocery stores or online.
If you’re just getting started, you can always use a small kitchen hand whisk or even a mason jar with a lid — but no blender, please, the matcha powder is so delicate.
After I complete this meditative routine, I always feel a little lighter. Simply put, it is healing.
Michiko Tomioka, MBA, RDN, is a certified nutritionist and longevity expert. Born and raised in Nara, Japan, her approach focuses on a plant-based diet. She has worked in nutritional roles at substance recovery centers, charter schools and food banks. Follow her on Instagram @michian_rd.
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This story originally appeared on WIRED Japan and has been translated from Japanese.
Built in 1969 in Uji City, Kyoto, the Uji Kokura factory was originally responsible for the production of toys. Now, more than half a century later, the factory has been reborn as the Nintendo Museum. It will open to the public on October 2, 2024.
Nintendo has recently unveiled details about the new museum. In addition to exhibiting products the company has released in the past—going all the way back to its founding as a playing card company in 1889—the facility will also feature interactive exhibits. There are three interactive sections, named “Learn,” “Experience,” and “Create and Play,” where visitors can experience what it would be like if Nintendo’s various products from its long history were created today, using current technology.
Reinventing Fun
The first floor of the museum is dominated by an exhibit where you can experience new interactive content, newly created just for the museum, that’s based on older Nintendo products. There’s a giant version of a card game based on Hyakunin Isshu, a set of 100 historical Japanese poems, that takes over an entire room. Players open a dedicated app which reads aloud the first verse of one of the poems. Then the players have to wander around the room where giant cards are scattered on the floor to find the corresponding card that continues the poem they just heard.
Shigureden SP is a giant version of Hyakunin Isshu that can be played by up to 20 people at a time. You listen to the first verse read aloud by a dedicated smartphone, and search for the card with the second verse written on it that is spread out at your feet. Players mark their progress by holding the phone over the card.
Photograph: Nintendo
Visitors can also play historical Nintendo home game consoles and their peripherals, as well as brand new mini-games based on toys released by Nintendo in the 1960s, such as the Ultra Machine pitching machine and the Ultra Hand, which featured a telescoping hand that could reach out and grasp objects. They can also try a new mini-game based on the Love Tester, which pretends to measure whether two people are romantically compatible.
Many of the mini-games offer experiences that differ from the original simply by changing the scale, such as Big Controller, in which two people play a console game using giant versions of previous hardware controllers. There’s also Game & Watch SP, in which players control various titles from the Game & Watch series of pocket-sized portable LCD games using only their shadows.
Visitors to the Nintendo Museum will need “coins” to interact with each of these experience. Each person receives 10 coins upon entering the museum, and the number of coins required varies depending on the exhibit or the mini-game. However, it is not possible to experience all the exhibits with just 10 coins, so visitors will have to pick and choose.
(Bloomberg) — European and US equity futures rose on Friday, building on gains in Asian stocks as traders piled into risk assets amid growing optimism that the US economy will avoid a recession. The yen is set for its worst week since May.
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Contracts on the Euro Stoxx 50 rose 0.3% and those on the S&P 500 added 0.2%, extending Wall Street’s overnight gains. Asia’s benchmark equity gauge is poised for its best weekly performance in over a year, led by Japanese shares as a weak yen boosted exporters’ earnings. The currency fell 1.3% versus the dollar Thursday, and was trading around the 149 level, easing fears of a massive carry trade unwind.
A slew of US data this week, from inflation to jobless claims to retail sales, has reassured investors, supporting the view that the world’s biggest economy is heading for a “Goldilocks” scenario where inflation is contained without stalling growth. Global stocks have largely erased last week’s losses, when traders were worried the Federal Reserve won’t cut rates fast enough to prevent a recession.
“Asian equities are enjoying an impressive run today, driven by a renewed sense of ‘perfect balance’ thanks to recent well-anticipated economic releases,” said Hebe Chen, an analyst at IG Markets Ltd. “Japanese stocks, in particular, continue their robust recovery with no signs of slowing down yet.”
Treasuries in Asia were steady after Thursday’s dip as signs of a resilient US economy in the latest data releases prompted traders to dial back bets for a jumbo September rate reduction. They are now pricing in less than a 30-basis point cut next month, with a total of 92 basis points of reduction expected for the remainder of 2024.
As fears around the US economy eased, equities continued a rebound from last week’s meltdown that rattled global markets. The S&P 500 extended a six-day rally to 6.6% on Thursday, marking the best performance in such a span since November 2022. Walmart Inc., often seen as a barometer of growth, jumped on a solid outlook.
Meanwhile, Wall Street’s “fear gauge” — the VIX — dropped around 15 after spiking to 65 last week. This rebound for US stocks from the heavy selling last week suggests that trend-following quant funds may soon return, which could provide further support to stocks.
In Japan, stocks headed for their biggest weekly advance since April 2020, driven by renewed weakness for the yen. This weakness may even attract some hedge funds back to the carry trade that blew up two weeks ago.
“Exporters are gaining on a weak yen and solid US economic figures,” said Hiroshi Namioka, chief strategist at T&D Asset Management Co. “Stocks that saw a huge selloff in the past month are being bought back as the market calms down from the rout.”
Elsewhere in Asia, China’s central bank chief pledged further measures to support the country’s economic recovery, while cautioning that it won’t adopt “drastic” measures.
Alibaba Group Holding Ltd. rose as optimism over tech stocks outweighed concerns about its earnings. JD.com Inc. gained the most since March after beating net profit estimates in results released late Thursday.
Soft Landing
US officials have been trying to use higher rates to ease inflation without causing the economy to contract — a scenario known as a “soft landing.” Fed Bank of St. Louis President Alberto Musalem said the time is nearing when it will be appropriate to cut rates. His Atlanta counterpart Raphael Bostic told the Financial Times he’s “open” to a reduction in September.
“A soft landing is no longer a hope. It’s becoming a reality,” said David Russell at TradeStation. “These numbers also suggest that recent market volatility wasn’t really a growth scare. It was just normal summer seasonality amplified by moves in the currency market.”
In commodities, gold was on track for a small weekly gain. Oil edged lower as the market weighed strong US economic data and a possible attack by Iran or its proxies on Israel against a lackluster Chinese demand outlook.
Key events this week:
US housing starts, University of Michigan consumer sentiment, Friday
Fed’s Austan Goolsbee speaks, Friday
Canada housing starts, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 6:40 a.m. London time
Nikkei 225 futures (OSE) rose 3.5%
Japan’s Topix rose 2.8%
Australia’s S&P/ASX 200 rose 1.1%
Hong Kong’s Hang Seng rose 1.9%
The Shanghai Composite was little changed
Euro Stoxx 50 futures rose 0.3%
Nasdaq 100 futures rose 0.3%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%
The euro rose 0.1% to $1.0984
The Japanese yen rose 0.2% to 149.01 per dollar
The offshore yuan fell 0.2% to 7.1766 per dollar
The Australian dollar rose 0.3% to $0.6631
The British pound rose 0.2% to $1.2878
Cryptocurrencies
Bonds
The yield on 10-year Treasuries declined one basis point to 3.90%
Japan’s 10-year yield advanced 4.5 basis points to 0.875%
Australia’s 10-year yield advanced six basis points to 3.94%
Commodities
This story was produced with the assistance of Bloomberg Automation.
Japanese Prime Minister Fumio Kishida has notified his governing party executives that he will not run in the upcoming party leadership vote in September, meaning Japan will have a new prime minister, Japan’s NHK public television and other media reported.
Kishida was elected president of his governing Liberal Democratic Party in 2021 and his three-year term expires in September.
His drop out of the race means a new leader who wins the party vote will succeed him as prime minister because the LDP controls both houses of parliament.
Japanese Prime Minister Fumio Kishida answers questions from reporters at the prime minister’s office in Tokyo on July 22, 2024.
STR/JIJI Press/AFP via Getty Images
Kishida, stung by his party’s corruption scandals, has suffered dwindling support ratings that have dipped below 20%.
Kishida was set to explain his decision in a press conference Wednesday.
Local election losses earlier in the year eroded his clout, and LDP lawmakers have voiced the need for a fresh face ahead of the next general election.
Since the corruption scandal broke, Kishida has removed a number of Cabinet ministers and others from party executive posts, dissolved party factions that were criticized as the source of money-for-favor politics, and passed a law tightening political funds control law. But support for his government has dwindled.
The scandal centers on unreported political funds raised through tickets sold for party events. It involved more than 80 LDP lawmakers, mostly belonging to a major party faction previously led by assassinated former Prime Minister Shinzo Abe. Ten people — lawmakers and their aides — were indicted in January.
(Bloomberg) — Asian equities pared early losses Thursday, continuing a bout of volatile trading as investors digest signals from central banks on the path ahead for interest rates.
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Benchmarks in Australia, South Korea, Taiwan and China dropped, with tech giants among the hardest hit. A region-wide gauge of the tech sector fell by around 2%, with the likes of SK Hynix Inc. down as much as 4.8% and Taiwan Semiconductor Manufacturing Co. falling as much as 2.8%. That followed a 1.2% drop for the tech-heavy Nasdaq 100 Index on Wednesday.
Japan’s Topix Index rebounded from a loss of as much as 1.8%, and the yen eraased an advance of up to 0.9%. A Thursday summary of opinions from last week’s Bank of Japan meeting, when it raised rates, showed one member identify the neutral rate at 1%, while another called for timely rate increases to avoid rapid hikes.
Global markets have been rocked in the past week as investors prepare for the US and Japanese central banks to move in opposite directions, in turn undermining the yen’s role as a cheap source of funding for financial assets.
The unspooling of the carry trade has further room to run but the declining velocity of the shift allows investors to breathe “a sigh of relief,” according to Quincy Krosby at LPL Financial. “A softer dollar, driven by the markets perception that the Fed will soon initiate an easing cycle, should help support a stronger yen — a negative for the trade.”
Three-quarters of the carry trade has been unwound as the recent slump wiped out all positive year-to-date returns, according to strategists at JPMorgan Chase & Co.
The dollar was slightly weaker Thursday, partly reversing moves from the prior session. Lackluster demand for a 10-year Treasury auction and $31.8 billion in debt offerings from blue-chip companies were headwinds.
The Treasury auction result is “consistent with our view that we’re due for a continued correction higher in yield in the near-term,” said Zachary Griffiths, head of US investment grade and macro strategy at CreditSights. “The repricing following what was really just a moderately weak payrolls report seems way overdone.”
US Markets
The S&P 500 closed 0.8% lower as Nvidia Corp. led losses in megacaps. Super Micro Computer Inc. tumbled 20% on disappointing earnings. In late trading, Warner Bros. Discovery Inc., the parent of CNN and TNT, plunged after posting a charge of $9.1 billion as it wrote down the value of its traditional TV networks.
Shares in Sony rallied Thursday after the Japanese consumer electronics company boosted its operating income guidance for the full year.
Markets have been in a tailspin since weak economic data last week fueled worries that the Federal Reserve’s decision to hold rates at a two-decade high is risking a deeper economic slowdown.
JPMorgan economists now see a 35% chance that the US economy tips into a recession by the end of this year, up from 25% as of the start of last month.
“Stocks remain vulnerable,” said Fawad Razaqzada at City Index and Forex.com. “More evidence of a bottom is needed to excite the bulls again. Overall, sentiment remained cagey. Not many people were confident to buy this latest dip, especially with US CPI looming next week.”
Oil climbed as investors remained on edge over the possibility of a retaliatory strike from Iran on Israel. Gold rose for the first time in six sessions.
Key events this week:
Germany industrial production, Thursday
US initial jobless claims, Thursday
Fed’s Thomas Barkin speaks, Thursday
China PPI, CPI, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 11:29 a.m. Tokyo time
Japan’s Topix rose 0.2%
Australia’s S&P/ASX 200 fell 0.3%
Hong Kong’s Hang Seng fell 0.3%
The Shanghai Composite fell 0.4%
Euro Stoxx 50 futures fell 0.9%
Nasdaq 100 futures rose 0.3%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0930
The Japanese yen was little changed at 146.65 per dollar
The offshore yuan was little changed at 7.1812 per dollar
The Australian dollar rose 0.3% to $0.6540
Cryptocurrencies
Bitcoin rose 4.5% to $57,637.55
Ether rose 4.8% to $2,463.01
Bonds
The yield on 10-year Treasuries declined two basis points to 3.92%
Japan’s 10-year yield advanced two basis points to 0.895%
Australia’s 10-year yield advanced two basis points to 4.09%
Commodities
West Texas Intermediate crude rose 0.5% to $75.57 a barrel
Spot gold rose 0.2% to $2,388.37 an ounce
This story was produced with the assistance of Bloomberg Automation.
TOKYO (AP) — Nissan showed Tuesday what it called a “cool paint” to keep people inside vehicles cooler, although the coating is six times thicker, making commercialization still a challenge.
Nissan Motor Co. tested the paint on vehicles scuttling around Tokyo’s Haneda airport, where there are plenty of unshaded areas that make it a good place to assess the technology.
The vehicles with the special paint looked like ordinary cars, but felt much cooler to the touch.
The cool paint lowered the cars’ roof-panel temperature by 12 degrees Celsius (22 degrees Fahrenheit) and the interiors by 5 C (9 F), according to Nissan.
Toyota Motor Corp. has also been experimenting with paint that delivers lower cabin temperatures, mostly focusing on colors that refract the sun’s rays.
Nissan’s cool paint reflects sunlight better and also creates electromagnetic waves that block the rays, redirecting energy away from vehicles.
Nissan’s paint was developed with Radi-Cool of China, which developed a film, fabric and coating that cut heat. Radi-Cool works with various other Japanese companies, offering cooler-feeling hats and sun parasols. Nissan is the only Japanese automaker partnering with Radi-Cool.
Susumu Miura, a Nissan Research Center manager, said there were no discernable negative effects to people’s health from the electromagnetic waves emitted by the paint. Such waves are all around us, he said.
“My dream is to create coolers cars without consuming energy,” he said.
(Bloomberg) — Japan equities are set to regain some ground after suffering the biggest hit in Monday’s global rout, which wiped out billions across markets from New York to London. US equity futures climbed in early trading.
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Futures show the Nikkei 225 gaining more than 6% when it reopens Tuesday, following a 12% slump that was the worst one-day decline in yen terms. Hong Kong and Sydney shares look more steady, suggesting traders may be ready to catch their breath following a dramatic day in which Wall Street’s “fear gauge” – the VIX – at one point registered its largest spike in data going back to 1990.
While the S&P 500 pared some of its losses to finish 3% lower Monday, it still suffered the biggest plunge in about two years amid strong trading volume. The tech-heavy Nasdaq 100 saw its worst start to a month since 2008. Still, futures show both those indices may gain when US trading begins later Tuesday.
Speculation about a looming US recession — mostly seen as premature — wiped out a celebratory mood driven by recent signals from the Federal Reserve about the timing of its first rate cut. The repricing was so sharp that the swap market earlier assigned a 60% chance of an emergency rate reduction by the Fed over the coming week. Those odds subsequently ebbed.
“The economy is not in crisis, at least not yet,” said Callie Cox at Ritholtz Wealth Management. “But it’s fair to say we’re in the danger zone. The Fed is in danger of losing the plot here if they don’t better acknowledge cracks in the job market. Nothing is broken yet, but it’s breaking and the Fed risks slipping behind the curve.”
Treasuries lost some steam after a surge that briefly drove two-year yields — which are sensitive to monetary policy — below those on 10-year bonds. US 10-year yields were little changed at 3.78%. The dollar fell. A gauge of perceived risk in the US corporate credit markets soared, with the turmoil effectively shutting down bond sales on what had been expected to be among the busiest days of the year. Bitcoin sank about 10%.
In Asia, the wave of selling that hit a fever pitch in Japan may subside. On Monday, investors rushed to unwind popular carry trades, powering a 2% jump in the yen and causing the Topix stock index to shed 12% and close the day with the biggest three-day drop in data stretching back to 1959. The rout wiped out $15 billion of SoftBank Group Corp.’s value on Monday.
The Bank of Japan’s monetary policy tightening last week has triggered a wave of criticism after it helped set off a historic plunge in Japanese stocks and contributed to global market turmoil — likely putting any plans for further interest-rate hikes on ice.
The US stock plunge is vindicating some prominent bears, who are doubling down with warnings about risks from an economic slowdown. JPMorgan Chase & Co.’s Mislav Matejka said equities are set to stay under pressure from weaker business activity, a drop in bond yields and a deteriorating earnings outlook. Morgan Stanley’s Michael Wilson warned of “unfavorable” risk-reward.
“This doesn’t look like a ‘recovery’ backdrop that was hoped for,” Matejka wrote. “We stay cautious on equities, expecting the phase of ‘bad is bad’ to arrive,” he added.
Market veteran Ed Yardeni said that the current equity selloff bears some similarity to the 1987 crash, when the economy averted a downturn despite investor fears at the time.
“This is very reminiscent, so far, of 1987,” Yardeni said on Bloomberg Television. “We had a crash in the stock market — that basically all occurred in one day — and the implication was that we were in, or about to fall into, recession. And that didn’t happen at all. It had really more to do with the internals of the market.”
After a very strong first half, the market had become extended on a short-term basis and the bar for positive surprises too high — and a little bit of bad news has gone a long way, according to Keith Lerner at Truist Advisory Services.
“From a stock market perspective, our base case has not changed,” Lerner said. “Our work still suggests the bull market deserves the benefit of the doubt. However, we have been expecting a choppier environment into the back half of July and August given the sharp rebound from April, stretched sentiment, and the fact that we’re entering a seasonally weaker period of the calendar year.”
Moreover, after strong first halves, historically we have seen a typical pullback of 9% at some point, even while markets still tended to end higher by the end of the year.
Notably, over the past 40 years, the S&P 500 has averaged a maximum intra-year pullback of 14%. Despite this, stocks have still shown an average return (not compounded) of 13% and risen in 33 out of 40 of those years, or 83% of the time, Lerner said.
“While always uncomfortable and typically accompanied by bad news, pullbacks are the admission price to the stock market,” Lerner said. “This is what provides the potential for higher longer-term returns relative to most other asset classes.”
Investors should hedge their risk exposure even if they own high quality assets as US stocks extend losses, according to Goldman Sachs Group Inc.’s Tony Pasquariello.
“There are times to go for the gas, and there are times to go for the brake — I’m inclined to ratchet down exposures and roll strikes,” Pasquariello wrote. He added that it’s difficult to think that August will be one of those months where investors should carry a significant portfolio risk.
To Michael Gapen at Bank of America Corp., markets are getting ahead of the Fed again.
“Incoming data have raised concerns that the US economy has hit an ‘air pocket.’ A rate cut in September is now a virtual lock, but we do not think the economy needs aggressive, recession-sized cuts.”
As the selloff in global stocks intensified Monday, JPMorgan Chase & Co.’s trading desk said the rotation out of the technology sector might be “mostly done” and the market is “getting close” to a tactical opportunity to buy the dip.
Elsewhere in the Asian region, Australia’s central bank on Tuesday is expected to hold its cash rate at 4.35% for a sixth straight meeting, economists predict. The nation is poised to stay near the back of the global easing cycle as local inflation — while cooling — remains elevated requiring the Reserve Bank to keep its key interest rate at a 12-year high.
Oil rose from a seven-month low early Tuesday as the halting of production from Libya’s biggest field refocused attention on the Middle East.
Corporate Highlights:
Palantir Technologies Inc. raised its annual outlook, citing continuing demand for its artificial-intelligence software.
A federal judge on Monday ruled that Google has illegally monopolized the search market, hading the government an epic win in its first major antitrust case against a tech giant in more than two decades.
Nvidia Corp.’s upcoming artificial intelligence chips will be delayed due to design flaws, The Information reported, citing two unidentified people who help produce the chip and its server hardware.
Dell Technologies Inc. is cutting jobs as part of a reorganization of its sales teams that includes a new group focused on artificial intelligence products and services.
Tyson Foods Inc. shares surged, bucking a broad retreat in equity markets, as quarterly earnings beat the highest of analyst estimates on a rebound in chicken profits.
Key events this week:
Australia rate decision, Tuesday
Eurozone retail sales, Tuesday
China trade, forex reserves, Wednesday
US consumer credit, Wednesday
Germany industrial production, Thursday
US initial jobless claims, Thursday
Fed’s Thomas Barkin speaks, Thursday
China PPI, CPI, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.9% at 8:08 a.m. in Tokyo; the S&P 500 fell 3%
Nikkei 225 futures rose 6.3%
Hang Seng futures rose 0.2%
S&P/ASX 200 futures fell 0.4%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed against the dollar
The Japanese yen fell 0.7% to 145.23 per dollar
Cryptocurrencies
Bitcoin rose 0.8% to $54,831.63
Ether rose 0.9% to $2,461.61
Bonds
Commodities
This story was produced with the assistance of Bloomberg Automation.
LONDON — European markets fell sharply at the start of the new trading week, though pared losses towards the end of the session amid a global stock sell-off.
The regional Stoxx 600 index closed 2.17% lower, pulling back from declines of more than 3% as the technology sector clawed back some ground to end 0.9% lower.
All sectors and major bourses nonetheless finished in the red, with utilities and oil and gas stocks both losing over 3%.
Strategists pointed to several causes for the downturn across Europe, Asia and the U.S. which began last week, including fears of a U.S. recession and rapid Federal Reserve Rate cuts, the recent hawkish pivot by the Bank of Japan and crash in the yen “carry trade,” and an ongoing re-rating of the tech sector.
The VIX, a measure of expected market volatility, jumped more than 100% to 64.06 during Monday trade before cooling to around 35, still its highest level since 2020.
U.S. stocks saw steep losses through the morning, with the Dow Jones Industrial Average losing nearly 1,000 points, or 2.5%, as the tech-heavy Nasdaq Composite fell 2.6%.
Asia-Pacific markets had led the sell-off on Monday. Japan stocks entered a bear market, with the Nikkei 225 losing 12.4% to log its worst day since 1987.
The broad-based Topix also saw a rout, tumbling 12.23%, while heavyweight trading houses such as Mitsubishi, Mitsui and Co., Sumitomo and Marubeni all plunged more than 14%.
The yen, meanwhile, rose to its highest level against the dollar since January as U.S. Treasurys gained.
On the data front, demand for U.K. services rose in July, increasing to 52.5 from 52.1 the previous month, fresh purchasing managers’ index data showed Monday. Corresponding data for Italy and Spain also pointed to sustained growth in the sector but at a slower pace than previous months.
A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)
NEW YORK (AP) — Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.
The S&P 500 sank 3.1% in early trading Monday.
The Dow Jones Industrial Average pulled back 996 points, and the Nasdaq composite slid 3.8%.
That followed a 12.4% plunge in Japan’s Nikkei 225, its worst day since 1987.
A jobs report on Friday in the U.S. came in significantly weaker than expected, deepening worries that the Federal Reserve may have kept the brakes on the economy too long with its inflation-fighting high interest rates policy
