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Tag: Japan

  • Princess Kako Celebrates Her 28th Birthday—And Her Expanded Royal Role

    Princess Kako Celebrates Her 28th Birthday—And Her Expanded Royal Role

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    On December 29, Japan’s Princess Kako celebrated her 28th birthday, and to mark the end of the year during which the princess expanded her royal role, the Imperial Household released a new set of portraits taken on the grounds of the Akasaka imperial residence in Tokyo. Kako was thrust further into the spotlight after her older sister, Mako Komuro, married her college sweetheart, Kei Komuro, and moved to New York City in late 2021. Over the last year, Kako took on two of Mako’s former royal jobs when she became the honorary president of the Japan Tennis Association and the president of the Japan Kogei Association, which promotes traditional crafts.

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    In a statement, the Imperial Household Agency said that Kako hopes to see society continue to evolve to allow more people to reach their full potential. “This hope appears to be strengthening as [the princess] experiences various things in life,” her attendants said, per the Kyodo News Agency. As coronavirus restrictions lifted in the country over 2022, Kako attended more royal engagements, including her annual contribution to a sign language competition, a visit to a sustainability award ceremony, and a trip to an urban greenery festival in Hokkaido

    Kako is the niece of Emperor Naruhito, the country’s current emperor, and the older brother of Prince Hisahito, the 16-year-old future emperor. As a teenager, Kako competed as a junior figure skater, and she also works part time with the Japanese Federation for the Deaf. She has also taken on a formal diplomatic role, meeting with Austria’s President Alexander Van der Bellen on an official trip in September 2019.

    The news comes as the imperial family is weighing new strategies to communicate with the public. Currently, the royal family only has a simple website where they share press releases, event information, and photographs, but according to the Japan Times, the Household announced that they are planning to hire an official public relations staff beginning in April and are considering starting accounts on social media. One factor contributing to the decision is the public controversy that Mako and Kei’s marriage prompted in the tabloid press, specifically related to his family financial situation. When the couple married, Mako said that the press intrusion had caused her emotional distress.

    Japanese law has strict expectations for women in the imperial family, and if Kako choses to get married, she will likely have to leave behind her royal title. On the occasion of her 56th birthday in September, Kako’s mother, Crown Princess Kiko, said that she planned to talk to Kako about her future and her possible future marriage, adding “I hope that she will be fulfilling her duties while accumulating experience.”


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  • Survey finds bleak outlook for Japanese companies in 2023

    Survey finds bleak outlook for Japanese companies in 2023

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    TOKYO — Major Japanese companies have grown more pessimistic about the economy, given higher costs and a weaker yen, according to a survey by Kyodo News.

    The survey of 117 companies found just over half, or 56%, expect the economy to grow this year. That was down sharply from 84% a year earlier, said the survey released Monday.

    The percentage of firms forecasting growth was at its second lowest in 10 years for the annual survey, and the companies also expressed worries about slowdowns in the United States and China in 2023.

    The war in Ukraine has pushed prices of oil and other raw materials higher while at the same time the yen has weakened against the U.S. dollar, raising risks for the world’s third-largest economy.

    The bleak outlook also reflects worries over a possible global recession as central banks in the U.S. and other major economies raise interest rates to counter inflation.

    The dollar rose to about 150 yen at its peak last year from 115 yen at the beginning of the year. On Tuesday, it was trading at about 130 yen.

    Only 3% of the companies surveyed said a weaker yen was a positive for them, with about a third saying it was a problem since it raised costs of manufacturing inputs and energy, hurting their bottom lines.

    Japan’s economy shrank at a 0.8% annual rate in July-September as pandemic precautions eased in the late summer, allowing normal business activity and travel to resume. Exports expanded 2.1% in annual terms. Growth in the last fiscal year, which ended in March, was at 2.5%.

    Toyota Motor Corp. was among the companies expecting a relatively good year. Like other major export manufacturers, it benefits from a cheaper yen when it repatriates profits earned overseas.

    Energy, telecoms and technology company SoftBank Group Corp. also foresaw improvement in coming months, according to the survey, conducted from late November to mid-December.

    Consumer spending has been recovering as Japan has ended restrictions on business activity to fight COVID-19 outbreaks, even as case numbers have soared in recent weeks. Most companies forecasting a positive outlook for 2023 cited that as the major reason for optimism.

    About a third of the companies surveyed said they expected no major changes this year, while seven anticipated a moderate contraction.

    ———

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • North Korea fires ballistic missiles towards Sea of Japan: Report

    North Korea fires ballistic missiles towards Sea of Japan: Report

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    DEVELOPING STORY,

    Japan’s Coast Guard said the missiles splashed down in the Sea of Japan, according to Japanese media reports.

    North Korea has reportedly fired two ballistic missiles towards the Sea of Japan, the latest launches in a year that has seen an unprecedented barrage of missile tests by an increasingly belligerent Pyongyang.

    Japan’s Coast Guard said the first ballistic missile was fired on Saturday morning shortly after 08:00am local time (23:00 GMT) and the second was launched at approximately 08:16am (23:16 GMT), The Japan Times reported.

    The missiles splashed down in the Sea of Japan but outside Japan’s exclusive economic zone – a body of water that extends approximately 370km (200 nautical miles) from the country’s coastline, according to the news organisation.

    South Korea’s Joint Chiefs of Staff confirmed the first missile launch by North Korea but gave no further details, such as the specific type of weapon or the distance the missile had travelled.

    The launches on Saturday add to North Korea’s tally of about 70 ballistic missiles – including some eight intercontinental ballistic missiles (ICBMs) – fired throughout the year, the most ever by the nuclear-armed Pyongyang which has officially announced plans to modernise its military capabilities in response to what it says is provocation by South Korea and its key ally, the United States.

    Saturday’s launch also comes just days after North Korea allegedly flew drones into South Korea’s airspace for the first time since 2017, prompting Seoul to deploy fighter jets and helicopters to shoot down the unmanned aerial vehicles.

    South Korea’s military later apologised for failing to shoot down the drones and the country’s President Yoon Suk Yeol has since called for stronger air defences and high-tech stealth drones to better monitor North Korea.

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  • Isozaki, Pritzker-winning Japanese architect, dies at 91

    Isozaki, Pritzker-winning Japanese architect, dies at 91

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    TOKYO — Arata Isozaki, a Pritzker-winning Japanese architect known as a post-modern giant who blended culture and history of the East and the West in his designs, has died of old age. He was 91.

    Isozaki died Wednesday at his home on Japan’s southern island Okinawa, according to the Bijutsu Techo, one of the country’s most respected art magazines, and other media.

    Isozaki won the Pritzker Architecture Prize, internationally the highest honor in the field, in 2019.

    Isozaki began his architectural career under the apprenticeship of Japanese legend Kenzo Tange, a 1987 Pritzker laureate, after studying architecture at the University of Tokyo, Japan’s top school.

    Isozaki founded his own office, Arata Isozaki & Associates, which he called “Atelier” around 1963, while working on a public library for his home prefecture of Oita — one of his earliest works.

    He was one of the forerunners of Japanese architects who designed buildings overseas, transcending national and cultural boundaries, and also as a critic of urban development and city designs.

    Among Isozaki’s best-known works are the Museum of Contemporary Art in Los Angeles and the Palau Sant Jordi stadium in Barcelona built for the 1992 Summer Games. He also designed iconic building such as the Team Disney Building and the headquarters of the Walt Disney Company in Florida.

    Born in 1931 in Oita, he was 14 when he saw the aftermath of the U.S. atomic bombings of Hiroshima and Nagaski in August 1945, which killed 210,000 people.

    That led to his theory that buildings are transitory but also should please the senses.

    Isozaki had said his hometown was bombed down and across the shore.

    “So I grew up near ground zero. It was in complete ruins, and there was no architecture, no buildings and not even a city,” he said when he received the Pritzker. “So my first experience of architecture was the void of architecture, and I began to consider how people might rebuild their homes and cities.”

    Isozaki was also a social and cultural critic. He ran offices in Tokyo, China, Italy and Spain, but moved to Japan’s southwestern region of Okinawa about five years ago. He has taught at Columbia University, Harvard and Yale. His works also include philosophy, visual art, film and theater.

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  • Shiba Inu behind

    Shiba Inu behind

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    Kabosu, the Shiba Inu behind the viral “Doge” meme, is seriously sick with cancer and an acute liver disease, her owner said.

    In a series of Instagram posts this week, the beloved pup’s owner, Atsuko Sato, said her dog is in a “very dangerous condition” after being diagnosed with chronic lymphoma leukemia and acute cholangiohepatitis, which is characterized by an inflamed liver.

    “Right now the liver level is very bad and jaundice appears,” said Sato, who is a teacher in Japan. “But antibiotics will definitely improve” Kabosu’s condition, she said.

    Earlier this week, Kabosu’s owner revealed that the 17-year-old Shiba Inu had not been eating or drinking water on Christmas Eve. But in her most recent post, Sato said the dog’s appetite had returned and showed Kabosu in several videos eating, drinking and resting next to a cat friend.

    “Kabosu has an appetite,” the owner wrote. “She can also drink water.”

    The internet-famous dog became popular after social media users began using a 2010 photo from Sato’s personal blog that showed Kabosu appearing to smirk. 

    The photo quickly became a meme and would often appear with comic sans captions that were written in a way that user’s imagined a dog’s inner dialogue might sound — grammatically incorrect, two-word sentences.

    The name itself originates from a 2005 episode of the comedic web series “Homestar Runner” in which a character misspells the word “dog” aloud. A user on Reddit posted Kabosu’s picture and referred to the Shiba Inu as “Doge,” changing its meaning forever.

    In the past, Sato said she had no idea how popular Kabosu’s image would become.

    “When I first found out about the Kabosu memes, I was very surprised,” she said in a blog. “I was terrified at the thought that just one photo I had casually posted on my blog could spread all over the world to places I didn’t know.”

    Dogecoin logo displayed on a mobile phone
    Dogecoin logo is displayed on a mobile phone screen photographed for illustration photo on May 6, 2021. Dogecoin, the meme cryptocurrency styled after an internet-famous Shiba Inu that was launched as a joke in 2013.

    Beata Zawrzel/NurPhoto via Getty Images


    Kabosu’s influence didn’t stop with an internet meme. Eventually, the photo and “Doge” title became the face of joke cryptocurrency, Dogecoin, which Elon Musk has repeatedly tweeted about — often corresponding with a brief surge in value.

    In 2021, an NFT of Kabosu’s iconic picture sold for $4 million.

    In her most recent post, Sato thanked Kabosu’s many fans for their support and concern.

    “To all of you who are worried, thank you very much.”

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  • Asian shares mixed after tech-led decline on Wall Street

    Asian shares mixed after tech-led decline on Wall Street

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    BANGKOK — Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.

    Shares fell in Tokyo, Shanghai and Seoul but rose in Hong Kong as the Chinese government took further steps to reopen to foreign travel after relaxing its stringent “zero-COVID” policies.

    Oil prices rose and U.S. futures inched higher.

    The Chinese government announced it will start issuing new passports in another major step away from anti-virus travel barriers. That sets up a potential flood of tourists out of China for next month’s Lunar New Year holiday, taking free-spending Chinese visitors to Asia, Europe and other destinations during what usually is the country’s busiest travel season.

    But governments in India and Japan have said they will impose extra precautions on those arriving from China due to widespread virus outbreaks there. U.S. officials also expressed concern and said they were considering taking similar steps.

    Hong Kong’s Hang Seng jumped 2% to 20,011.99. The Shanghai Composite index gave up early gains, losing 0.2% to 3,000.23.

    Tokyo’s Nikkei 225 lost 0.6% to 26,301.69 after the government reported that Japan’s industrial production fell for a third straight month in November and said it was likely to fall further in December. The Kospi in Seoul declined 2.2% to 2,282.26.

    In Australia, the S&P/ASX 200 dropped 0.3% to 7,086.50.

    On Wall Street, the S&P 500 fell 0.4% to 3,829.25 and the Dow Jones Industrial Average eked out a 0.1% gain, closing at 33,241.56. The Nasdaq dropped 1.4% to 10,353.23.

    The Russell 2000 index dropped 0.7% to 1,749.52.

    Technology and communication services companies accounted for a big share of the decliners in the S&P 500. Apple fell 1.4% and Netflix lost 3.7%.

    Airlines stocks fell broadly. A massive winter storm caused widespread delays and forced several carriers to cancel flights over the weekend. Delta Air Lines closed 0.8% lower, American Airlines dropped 1.4% and JetBlue slid 1.1%.

    Southwest Airlines slid 6% after the company had to cancel roughly two-thirds of its flights over the last couple of days, which it blamed on problems related to staffing and weather. The federal government said it would investigate why the company lagged so far behind other carriers.

    Tesla fell 11.4% for the biggest decline among S&P 500 stocks. The electric vehicle maker temporarily suspended production at a factory in Shanghai, according to published reports.

    Treasury yields mostly rose as the U.S. bond market reopened from Christmas holidays. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.85% from 3.75% late Friday.

    Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

    Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023, even though the pace of price increases has been easing.

    The high rates, which weigh heavily on prices for stocks and other investments, have fueled concerns that the economy could slow too much and slip into a recession next year.

    The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%.

    In other trading Wednesday, U.S. benchmark crude oil added 5 cents to $79.58 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3 cents on Tuesday to $79.53 per barrel.

    Brent crude, the pricing basis for international trading, gained 14 cents to $84.82 per barrel.

    The U.S. dollar rose to 134.09 Japanese yen from 133.43 yen. The euro was trading at $1.0643, up from $1.0640.

    ———

    AP Business Writer Alex Veiga contributed.

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  • World shares mostly lower after tech-led fall on Wall Street

    World shares mostly lower after tech-led fall on Wall Street

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    BANGKOK — Shares were mostly lower in Europe and Asia on Wednesday as markets were counting down to the end of a painful year for investors, with no end in sight to uncertainties stemming from the pandemic and the war in Ukraine.

    Shares fell in Frankfurt, Paris, Tokyo, Shanghai and Seoul but rose in London and Hong Kong as the Chinese government took further steps to reopen to foreign travel after relaxing its stringent “zero-COVID” policies.

    Oil prices fell back and U.S. futures inched higher.

    Not all world markets have ended the year on low notes. Britain’s FTSE 100 is at about the level it started 2022. Early Wednesday it was up 0.7% at 7,525.42.

    But most other markets have suffered as interest rate increases, waves of coronavirus infections, the war, supply chain disruptions and surging inflation took a toll on businesses and investments.

    Germany’s DAX lost 0.3% to 13,952.83. It’s down about 13% from the start of the year. The CAC 40 in Paris, which is about 9% below where it began the year, edged 0.1% lower, to 6,541.50.

    The future for the S&P 500 was barely changed, down 1 point. The future for the Dow Jones Industrial Average edged 0.1% higher.

    On Tuesday, the S&P 500 fell 0.4% and the Dow industrials eked out a 0.1% gain. The Nasdaq dropped 1.4%, while the Russell 2000 index dropped 0.7%.

    The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%.

    The Chinese government announced late Tuesday that it will start issuing new passports, a major step away from anti-virus travel barriers that likely will bring a flood of tourists out of China for next month’s Lunar New Year holiday.

    The return of free-spending Chinese visitors to Asia, Europe and other destinations during what usually is the country’s busiest travel season will be a welcome relief for countries like Thailand that depend heavily on tourism.

    But some governments have said they will impose extra precautions on people arriving from China given the widespread virus outbreaks there. U.S. officials, speaking on condition of anonymity to convey internal discussions, also expressed concern and said they were considering taking similar steps.

    With China in the midst of its most severe COVID wave so far, disruptions to manufacturing and transport will likely linger until the worst is past.

    “Investors are enthusiastic about China re-opening its economy. However, there are plenty of reports which suggest that COVID cases are on the rise in China, which really threatens the supply chain,” Naeem Aslam of Avatrade.com said in a commentary.

    In Asian trading, Hong Kong’s Hang Seng climbed 1.6% to 19,898.91 while the Shanghai Composite index dropped 0.3% to 3,087.40. Hong Kong’s benchmark is down 14% for the year, while Shanghai’s has lost slightly more so far, at 14.2%.

    Tokyo’s Nikkei 225, which has given up 8.6% this year, fell 0.4% to 26,340.50 after the government reported that Japan’s industrial production fell for a third straight month in November and was likely to fall further in December.

    The Kospi in Seoul declined 2.2% to 2,280.45, while Australia’s S&P/ASX 200 dropped 0.3% to 7,086.40. Bangkok’s SET gained 0.3%.

    Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

    Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge, even as price increases have eased. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023.

    The high rates weigh heavily on prices for stocks and other investments and have raised worries they might slow the economy too much, tipping it into a recession.

    In other trading, U.S. benchmark crude oil shed 54 cents to $78.99 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3 cents on Tuesday to $79.53 per barrel.

    Brent crude, the pricing basis for international trading, declined 39 cents to $84.29 per barrel.

    The U.S. dollar rose to 134.01 Japanese yen from 133.43 yen. The euro was unchanged at $1.0641.

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  • Japan PM sacks 4th minister to patch up scandal-hit Cabinet

    Japan PM sacks 4th minister to patch up scandal-hit Cabinet

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    TOKYO — Japan’s Prime Minister Fumio Kishida on Tuesday dismissed his fourth minister in two months to patch a scandal-tainted Cabinet that has raised questions over his judgment of staff credentials.

    Kenya Akiba, minister in charge of reconstruction of Fukushima and other disaster-hit areas, has faced allegations of mishandling political and election funds and of ties to the Unification Church, whose practices and huge donations have raised controversy.

    “I have made a heavy decision and submitted my resignation,” Akiba told reporters after meeting with Kishida. He repeated that he has never violated any law in relation to the issues for which he has been criticized and that he was resigning because he didn’t want to trouble the party or stall parliamentary debate because of his presence in the Cabinet.

    Kishida tapped former reconstruction minister Hiromichi Watanabe as a replacement. Watanabe’s appointment was to be official after a palace ceremony.

    Akiba’s dismissal was seen as Kishida’s attempt to remove an administration’s soft spot that could stall upcoming parliamentary work on a key budget bill, including hefty defense spending aimed at bolstering Japan‘s strike capability.

    “I take my responsibility of appointment very seriously,” Kishida said. “I will keep fulfilling my political responsibility by continuing to tackle a mountain of problems.”

    Jun Azumi, a senior lawmaker of the main opposition Constitutional Democratic Party of Japan who has criticized Kishida for making other slow decisions on his staff, said that “four (dismissals) are too much and the prime minister should be held responsible over their appointment.”

    While Kishida has made some of the drastic changes to defense and energy policies, including a new security strategy and maximizing nuclear energy, he’s also seen as being indecisive and slow in risk management of his own government.

    Also Tuesday, Kishida accepted the resignation of Internal Affairs Minister Mio Sugita, who has made derogatory remarks against sexual and ethnic minorities in the past.

    Sugita said in 2018 that same-sex couples who don’t have children are “unproductive,” and in 2016, she scoffed at those wearing traditional ethnic costumes at an United Nations’ committee meeting as “middle-aged women in costume play.”

    Kishida said Sugita submitted her resignation saying that she cannot bend her personal beliefs while she retracted some of her earlier comments.

    Kishida had been seen as a stable choice for a leader and won the July elections with a prospect of a three-year mandate to achieve his policies until the next scheduled vote. But his popularity has plummeted over the Liberal Democratic Party’s widespread ties to the Unification Church that surfaced after the assassination of former leader Shinzo Abe.

    The suspected shooter told investigators his mother’s donations to the church bankrupted his family and ruined his life. He reportedly targeted Abe as a key figure behind the church’s ties to Japan’s LDP-led government.

    Revelations have since surfaced about many LDP lawmakers having friendly ties to the church, which has been criticized as allegedly brainwashing followers into making huge donations. A new law passed earlier this month aims to restrict such activities.

    Economic Revitalization Minister Daishiro Yamagiwa quit on Oct. 24 after failing to explain his ties to the Unification Church. In early November, Justice Minister Yasuhiro Hanashi resigned after remarking that his job is low profile and only makes news when he signs the death penalty.

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  • North Korea’s record year of missile testing is putting the world on edge | CNN

    North Korea’s record year of missile testing is putting the world on edge | CNN

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    Seoul, South Korea
    CNN
     — 

    In 2020, North Korea conducted four missile tests. In 2021, it doubled that number. In 2022, the isolated nation fired more missiles than any other year on record, at one point launching 23 missiles in a single day.

    North Korea has fired more than 90 cruise and ballistic missiles so far this year, showing off a range of weapons as experts warn of a potential nuclear test on the horizon.

    Though the tests themselves aren’t new, their sheer frequency marks a significant escalation that has put the Pacific region on edge.

    “The big thing about 2022 is that the word ‘test’ is no longer appropriate to talk about most North Korean missile launches – they are hardly testing missiles these days,” said Ankit Panda, a nuclear policy expert at the Carnegie Endowment for International Peace. “Everything we’ve seen this year suggests that Kim Jong Un is dead serious about using nuclear capabilities early in a conflict if necessary.”

    The attention-grabbing tests also threaten to set off an arms race in Asia, with nearby countries building up their militaries, and the United States promising to defend South Korea and Japan by the “full range of capabilities, including nuclear.”

    Here’s a look back at a year of weaponry and warnings – and what could come next.

    Of the more than 270 missile launches and nuclear tests by North Korea since 1984, more than a quarter came this year, according to the Center for Strategic and International Studies’ Missile Defense Project.

    Of that total, more than three quarters were recorded after Kim Jong Un came to power in 2011, reflecting the dictator’s ambitions – of which he made no secret, vowing in April to develop the country’s nuclear forces at the “highest possible” speed.

    That lofty goal was reflected in a flurry of testing, with North Korea firing missiles on 36 days this year, according to a CNN count.

    “For missiles, they set daily, monthly and yearly records,” said Bruce Klingner, senior research fellow at The Heritage Foundation’s Asian Studies Center.

    The majority of these tests were cruise and ballistic missiles. Cruise missiles stay inside the Earth’s atmosphere and are maneuverable with control surfaces, like an airplane, while ballistic missiles glide through space before reentering the atmosphere.

    Pyongyang has also fired surface-to-air missiles and hypersonic missiles.

    “North Korea is literally turning into a prominent operator of large scale missile forces,” said Panda. He pointed to recent instances where North Korea fired missiles in response to military exercises or diplomatic talks by the US and its regional allies, adding: “Anything that the US and South Korea will do, North Korea can proportionately demonstrate that it has capabilities to keep up as well.”

    Among the ballistic missiles tested was the Hwasong-12, which traveled more than 4,500 kilometers (about 2,800 miles) in October – flying over Japan, the first time North Korea had done so in five years. Another notable missile was the Hwasong-14, with an estimated range of more than 10,000 kilometers (more than 6,200 miles).

    To put those distances in context, the US island territory of Guam is just 3,380 kilometers (2,100 miles) from North Korea.

    But one particular weapon has drawn international attention: the Hwasong-17, North Korea’s most powerful intercontinental ballistic missile (ICBM) to date. It could theoretically reach the US mainland – but there are still a lot of unknowns about the missile’s ability to deliver a nuclear payload on target.

    North Korea claimed to have successfully launched the Hwasong-17 in March for the first time. However, South Korea and US experts believe the test may have actually been an older and less advanced missile.

    The Hwasong-17 was tested again in November, according to North Korean state media, with Kim warning afterward that the country would take “more offensive” action in response to “enemies seeking to destroy peace and stability in the Korean Peninsula and region.”

    Since early this year, the US and international observers have been warning that North Korea appears to be preparing for an underground nuclear test – which would be its first since 2017.

    Satellite imagery has shown new activity at North Korea’s nuclear test site, where the country has previously conducted six underground nuclear tests. It claimed its most recent test was a hydrogen bomb, the most powerful weapon Pyongyang has ever tested.

    That 2017 nuclear test had an estimated yield of 160 kilotons, a measure for how much energy the explosion releases.

    For comparison, the US atomic bombings of Hiroshima and Nagasaki, in Japan, yielded just 15 and 21 kilotons respectively. The US and Russia have performed the most explosive tests in history, yielding upwards of 10,000 kilotons.

    It’s not clear exactly how many nuclear weapons North Korea possesses. Experts at Federation of American Scientists estimate it may have assembled 20 to 30 nuclear warheads – but its ability to detonate them accurately on the battlefield is unproven.

    Though there had once been hopes of a diplomatic breakthrough in 2019 after landmark meetings between Kim and then-US President Donald Trump, those were dashed after both leaders walked away without having struck any formal denuclearization agreements.

    US-North Korea relations have nosedived since then, with Kim in 2021 announcing a sweeping five-year plan for modernizing the North’s military, including developing hypersonic weapons and a nuclear-powered submarine.

    This year is an extension of that vision, with North Korea working toward developing its own strategic nuclear deterrent as well as nuclear options in any conflict on the Korea Peninsula.

    There are a few possible reasons why this year has been so active. Some experts say Kim could have felt empowered to act while the West was preoccupied with the war in Ukraine. Panda, the nuclear expert, added that tensions tend to flare when South Korea has a conservative government – which has been the case since May.

    North Korea’s aggressive acceleration in weapons testing has sparked alarm in the region, pushing its exposed neighbors – Japan and South Korea – closer to Western partners.

    The US, South Korea and Japan have held a number of joint exercises and fired their own missiles in response to Pyongyang’s tests. The US stepped up its presence in the region, redeploying an aircraft carrier into waters near the peninsula, and sending top-of-the-line stealth fighter aircraft to South Korea for training. Meanwhile, the Quad countries – a grouping of the US, India, Japan and Australia – have deepened military cooperation, with their leaders meeting in May.

    Individual governments have also taken dramatic action, with Japan saying it will double its defense spending, the pacifist nation’s biggest military buildup since World War II.

    But experts have warned that this rapid militarization could fuel instability across the region. And there’s no clear end in sight; the US and South Korea have more joint exercises planned in the spring, which could propel North Korea to continue firing tests “just to show their displeasure,” said Klingner.

    He added that negotiations are unlikely until Kim has further developed his weapons, when “in his mind, he’d be coming back to the table in a position of strength.”

    “Each of the lanes of the road, they’ve been improving their capabilities, both nuclear and missile,” he said. “It’s all very, very worrisome.”

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  • Asian shares higher in thin holiday trading

    Asian shares higher in thin holiday trading

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    BANGKOK — Shares rose Monday in Asia in thin post-Christmas holiday trading, with markets in Hong Kong, Sydney and several other places closed.

    Tokyo’s Nikkei 225 index gained 0.6% to 26,393.32 and the Kospi in Seoul added 0.2% to 2,318.54. The Shanghai Composite index rose 0.5% to 3,061.93 and the SET in Bangkok added 0.6%.

    Bank of Japan Gov. Haruhiko Kuroda indicated in a widely watched speech Monday that the central bank does not intend to alter its longstanding policy of monetary easing to cope with pressures from inflation on the world’s third-largest economy.

    Last week, markets were jolted by a slight adjustment in the target range for the yield of long-term Japanese government bonds, viewing it as a sign the Bank of Japan might finally unwind its massive support for the economy through ultra-low interest rates and purchases of bonds and other assets.

    A widening gap between interest rates in Japan and other countries has pulled the Japanese yen sharply lower against the U.S. dollar and other currencies and accentuated the impact of higher costs for many imported products and commodities.

    But the BOJ has kept its key lending rate at minus 0.1%, cautious over risks of recession.

    Kuroda told the Keidanren, the country’s most powerful business group, that with economies facing likely downward pressure, and with Japan’s economy not fully recovered from the impacts of the pandemic, the BOJ “deems it necessary to conduct monetary easing and thereby firmly support the economy. …”

    On Friday, the S&P 500 reversed a 0.7% loss to close 0.6% higher, at 3,844.82. With one week left of trading in 2022, the benchmark index is down 19.3% for the year.

    The Dow Jones Industrial Average rose 0.5% to 33,203.93, while the tech-heavy Nasdaq edged 0.2% higher, to 10,497.86.

    Small company stocks also rose. The Russell 2000 index picked up 0.4% to 1,760.93.

    Mixed economic news weighed on stocks early on, but the indexes rebounded by late afternoon amid relatively light trading ahead of the long holiday weekend. U.S. and European markets will be closed Monday.

    Markets are in a tricky situation where relatively solid consumer spending and a strong employment market reduce the risk of a recession but also raise the threat of higher interest rates from the Federal Reserve as it presses its campaign to crush inflation.

    The government reported Friday that a key measure of inflation is continuing to slow, though the inflation gauge in the consumer spending report was still far higher than anyone wants to see. Also, growth in consumer spending weakened last month by more than expected, but incomes were a bit stronger than expected.

    Last week’s reports were the last big U.S. economic updates of the year. Investors will soon turn their focus to the next round of corporate earnings.

    The Fed has said it will keep raising interest rates to tame inflation, even though the pace of price increases has continued to ease. The Fed’s key overnight rate is at its highest level in 15 years, after beginning the year at a record low of roughly zero. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers have forecast that the rate will reach a range of 5% to 5.25% by the end of 2023.

    Given the persistence of high inflation, “many are starting to believe the main story is that there will be no scope for Fed cuts in the year ahead and that central banks will maintain these relatively high rates until underlying inflation is truly cracked — and that process will take time,” Stephen Innes of SPI Asset Management said in a commentary.

    The Fed’s forecast doesn’t call for a rate cut before 2024, and the higher rates have raised concerns the economy could stall and slip into a recession in 2023. High rates have also been weighing heavily on prices for stocks and other investments.

    In currency dealings, the U.S. dollar slipped to 132.62 Japanese yen from 132.82 yen late Friday. The euro rose to $1.0629 from $1.0614.

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  • Heavy snow in Japan leaves 17 dead, dozens injured

    Heavy snow in Japan leaves 17 dead, dozens injured

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    TOKYO — Heavy snow in large swaths of Japan has killed 17 and injured more than 90 people and left hundreds of homes without power, disaster management officials said Monday.

    Powerful winter fronts have dumped heavy snow in northern regions since last week, stranding hundreds of vehicles on highways, delaying delivery services and causing 11 deaths by Saturday. More snowfall over the Christmas weekend brought the number of dead to 17 and injured to 93 by Monday morning, according to the Fire and Disaster Management Agency. Many of them had fallen while removing snow from the roofs or were buried underneath thick piles of snow sliding off rooftops.

    Municipal offices in the snow-hit regions urged residents to use caution during snow removal activity and not to work alone.

    The disaster management agency said a woman in her 70s was found dead buried underneath a thick pile of rooftop snow that suddenly fell on her in Yamagata prefecture’s Nagai City, about 300 kilometers (180 miles) north of Tokyo, where snow piled up higher than 80 centimeters (2.6 feet) Saturday.

    In Niigata, known for rice growing, some makers of mochi, or sticky rice cakes that are staple for New Year clebration meals, said there have been delivery delays and their mochi may not reach their customers in time.

    Many parts of northeastern Japan reported three times their average snowfall for the season.

    Heavy snow knocked down an electric power transmission tower in Japan’s northernmost main island, leaving about 20,000 homes without power on Christmas morning, though electricity was restored in most areas later that day, according to the economy and industry ministry.

    Dozens of trains and flights were also suspended in northern Japan through Sunday, but services have since mostly resumed, according to the transportation ministry.

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  • Heavy snow in Japan leaves 17 dead, dozens injured

    Heavy snow in Japan leaves 17 dead, dozens injured

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    TOKYO — Heavy snow in large swaths of Japan has killed 17 and injured more than 90 people and left hundreds of homes without power, disaster management officials said Monday.

    Powerful winter fronts have dumped heavy snow in northern regions since last week, stranding hundreds of vehicles on highways, delaying delivery services and causing 11 deaths by Saturday. More snowfall over the Christmas weekend brought the number of dead to 17 and injured to 93 by Monday morning, according to the Fire and Disaster Management Agency. Many of them had fallen while removing snow from the roofs or were buried underneath thick piles of snow sliding off rooftops.

    Municipal offices in the snow-hit regions urged residents to use caution during snow removal activity and not to work alone.

    The disaster management agency said a woman in her 70s was found dead buried underneath a thick pile of rooftop snow that suddenly fell on her in Yamagata prefecture’s Nagai City, about 300 kilometers (180 miles) north of Tokyo, where snow piled up higher than 80 centimeters (2.6 feet) Saturday.

    In Niigata, known for rice growing, some makers of mochi, or sticky rice cakes that are staple for New Year clebration meals, said there have been delivery delays and their mochi may not reach their customers in time.

    Many parts of northeastern Japan reported three times their average snowfall for the season.

    Heavy snow knocked down an electric power transmission tower in Japan’s northernmost main island, leaving about 20,000 homes without power on Christmas morning, though electricity was restored in most areas later that day, according to the economy and industry ministry.

    Dozens of trains and flights were also suspended in northern Japan through Sunday, but services have since mostly resumed, according to the transportation ministry.

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  • Asian shares higher in thin holiday trading

    Asian shares higher in thin holiday trading

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    BANGKOK — Shares rose Monday in Asia in thin post-Christmas holiday trading, with markets in Hong Kong, Sydney and several other places closed.

    Tokyo’s Nikkei 225 index gained 0.5% to 26,367.40 and the Kospi in Seoul added 0.2% to 2,317.48. The Shanghai Composite index surged 0.7% to 3,067.54 and the SET in Bangkok added 0.3%.

    Traders were awaiting a speech by the governor of Japan‘s central bank Monday for hints into whether the Bank of Japan might further adjust its longstanding ultra-lax monetary policy to cope with pressures from inflation.

    Last week, markets were jolted by a slight adjustment in the target range for the yield of long-term Japanese government bonds, viewing it as a sign the Bank of Japan might finally unwind its massive support for the economy through ultra-low interest rates and purchases of bonds and other assets.

    A widening gap between interest rates in Japan and other countries has pulled the Japanese yen sharply lower against the U.S. dollar and other currencies and accentuated the impact of higher costs for many imported products and commodities.

    But the BOJ has kept its key lending rate at minus 0.1%, cautious over risks of recession.

    On Friday, the S&P 500 reversed a 0.7% loss to close 0.6% higher, at 3,844.82. With one week left of trading in 2022, the benchmark index is down 19.3% for the year.

    The Dow Jones Industrial Average rose 0.5% to 33,203.93, while the tech-heavy Nasdaq edged 0.2% higher, to 10,497.86.

    Small company stocks also rose. The Russell 2000 index picked up 0.4% to 1,760.93.

    Mixed economic news weighed on stocks early on, but the indexes rebounded by late afternoon amid relatively light trading ahead of the long holiday weekend. U.S. and European markets will be closed Monday.

    Markets are in a tricky situation where relatively solid consumer spending and a strong employment market reduce the risk of a recession but also raise the threat of higher interest rates from the Federal Reserve as it presses its campaign to crush inflation.

    The government reported Friday that a key measure of inflation is continuing to slow, though it’s still far higher than anyone wants to see. The Federal Reserve monitors the inflation gauge in the consumer spending report, called the personal consumption expenditures price index, even more closely than it does the government’s better-known consumer price index.

    Also, growth in consumer spending weakened last month by more than expected, but incomes were a bit stronger than expected.

    A separate report from the University of Michigan indicating U.S. households are lowering their forecasts for upcoming inflation. That could help avoid a scenario the Federal Reserve has said often it’s desperate to prevent: a vicious cycle where shoppers rush to make purchases in advance of expected price rises, which would only worsen inflation.

    The latest round of reports were the last big U.S. economic updates of the year. Investors will soon turn their focus to the next round of corporate earnings.

    The Fed has said it will keep raising interest rates to tame inflation, even though the pace of price increases has continued to ease. The Fed’s key overnight rate is at its highest level in 15 years, after beginning the year at a record low of roughly zero. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers have forecast that the rate will reach a range of 5% to 5.25% by the end of 2023.

    Given the persistence of high inflation, “many are starting to believe the main story is that there will be no scope for Fed cuts in the year ahead and that central banks will maintain these relatively high rates until underlying inflation is truly cracked — and that process will take time,” Stephen Innes of SPI Asset Management said in a commentary.

    The Fed’s forecast doesn’t call for a rate cut before 2024, and the higher rates have raised concerns the economy could stall and slip into a recession in 2023. High rates have also been weighing heavily on prices for stocks and other investments.

    In currency dealings, the U.S. dollar slipped to 132.53 Japanese yen from 132.82 yen late Friday. The euro rose to $1.0628 from $1.0614.

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  • Wall Street points modestly higher ahead of inflation report

    Wall Street points modestly higher ahead of inflation report

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    Wall Street pointed slightly higher in premarket trading Friday as investors await the government’s final inflation-related report of the year.

    Futures for the S&P 500 rose 0.2% and futures for the Dow Jones Industrials were up 0.3%.

    On tap Friday is the Commerce Department’s consumer spending report for November, which includes measure of inflation that is closely monitored by the Federal Reserve. The report for October showed that inflation eased somewhat, with prices rising 6% in October from a year earlier. That was the smallest increase since November 2021.

    Analysts surveyed by data firm FactSet expect that number to have fallen further, to 5.5% in November. That would be good news for American consumers, who have been squeezed by higher prices for just about everything for the past year-and-a-half.

    The Fed is believed to monitor the inflation gauge in the consumer spending report, called the personal consumption expenditures price index, even more closely than it does the government’s better-known consumer price index. But whether a projected half-percentage point decline would move Fed policymakers to soften their stance on future rate hikes remains to be seen.

    Last week, the central bank boosted its benchmark rate a half-point to a range of 4.25% to 4.5%, its highest level in 15 years. More surprisingly, the policymakers forecast that their key short-term rate will reach a range of 5% to 5.25% by the end of 2023. That suggests that the Fed is poised to raise its rate by an additional three-quarters of a point and leave it there through next year. That has many economists and investors expecting the U.S. economy to fall into recession in 2023.

    Japan reported its core inflation rate, excluding volatile fresh foods, rose to 3.7% in November, the highest level since 1981, as surging costs for oil and other commodities added to upward price pressures in the world’s third-largest economy.

    While the rate was much lower than in the U.S. and most major European and emerging economies, it adds to pressure on the Bank of Japan to adjust its own policies that have kept interest rates ultra-low to spur growth. For Japan, deflation — falling prices — rather than inflation has been the key concern for most of the past few decades. Recession in coming months remains the greater concern, economists say.

    “Inflation edged up in November and will peak at around 4% around the turn of the year, but we expect it to fall back below the Bank of Japan’s 2% target by mid-2023,” Capital Economics economist Marcel Thieliant said in a report.

    Tokyo’s Nikkei 225 index lost 1% to 26,242.58 and the Hang Seng in Hong Kong shed 0.5% to 19,578.44. The Shanghai Composite index was unchanged, at 3,054.52 and Australia’s S&P/ASX 200 declined 0.7% to 7,099.70.

    In Seoul, the Kospi dropped 1.4% to 2,323.09. Shares also fell in Bangkok, Mumbai and Taiwan.

    In Europe, London’s FTSE 100 was flat, while Frankfurt’s DAX rose 0.3%. The CAC 40 in Paris dipped 0.1%.

    In other trading Friday, U.S. benchmark crude oil rose $1.78 to $79.27 per barrel in electronic trading on the New York Mercantile Exchange. It fell 80 cents to $77.49 per barrel on Thursday.

    Brent crude oil, the pricing basis for international trading, advanced $1.61 to $83.28 per barrel.

    The U.S. dollar rose to 132.66 Japanese yen from 132.38 yen. The euro strengthened to $1.0622 from $1.0597.

    The S&P 500 fell 1.4% on Thursday after having been down as much as 2.9% earlier in the day. It closed at 3,822.39. The pullback brings Wall Street’s main measure of health back to a loss of nearly 20% for the year.

    The Dow Jones Industrial Average fell 1% to 33,027.49 and the Nasdaq closed 2.2% lower, at 10,476.12. The Russell 2000 index dropped 1.3% to 1,754.09.

    ——-

    Kurtenbach reported from Bangkok; Ott reported from Washington.

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  • Japan’s consumer inflation hits fresh 40-year high | CNN Business

    Japan’s consumer inflation hits fresh 40-year high | CNN Business

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    Japan’s core consumer inflation hit a fresh four-decade high as companies continued to pass on rising costs to households, data showed, a sign price hikes were broadening and could keep the central bank under pressure to whittle down massive stimulus.

    Months before Tuesday’s surprise tweak to its yield control policy, Bank of Japan (BOJ) policymakers had discussed the potential market impact of a future exit from ultra-low interest rates, minutes of their October meeting showed Friday.

    While many retailers plan further hikes for food products next year, the outlook for inflation and the timing of any further BOJ policy tweaks are muddled by the risk of global recession and uncertainty over the pace of wage hikes, analysts say.

    “The hurdle for policy normalization isn’t low. The global economy may worsen in the first half of next year, making it hard for the BOJ to take steps that can be interpreted as monetary tightening,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

    Japan’s core consumer price index (CPI), which excludes volatile fresh food but includes energy costs, rose 3.7% in November from a year earlier, data showed Friday, matching market forecasts and perking up from a 3.6% gain in October.

    It was the biggest rise since a 4.0% jump seen in December 1981, when inflation was still high from the impact of the 1979 oil shock and a booming economy.

    Aside from utility bills, prices rose for a broad range of goods from fried chicken, smartphones to air conditioners, in a sign of mounting inflationary pressure, the data showed.

    Many analysts expect core consumer inflation to slow back near the BOJ’s 2% target next year, as the base effect of past fuel price spikes dissipates and the impact of government subsidies to curb electricity prices take effect from February.

    But an index stripping away such one-off factors may remain elevated and keep pressure on the BOJ to remain vigilant to the chance of a demand-driven rise in inflation.

    The so-called “core-core” index, which excludes both fresh food and energy prices, rose 2.8% in November from a year earlier, accelerating from a 2.5% increase in October.

    The rise in the core-core index, which the BOJ closely watches as a gauge of demand-driven inflation, highlights how inflationary pressure is building in once deflation-prone Japan and could persist well into next year.

    Already, companies expect to hike prices for 7,152 food products in the first four months of 2023, more than double the number of the same period this year, research firm Teikoku Data Bank said in a report.

    “We’ll likely see a rush in price hikes next year that could be more intense than this year,” as companies face rising labor and distribution costs, Teikoku Data Bank said.

    The BOJ stunned markets on Tuesday by tweaking its yield control and allowing long-term interest rates to rise more, a move market players see as a prelude to a further withdrawal of its massive stimulus program.

    BOJ Governor Haruhiko Kuroda, who will see his term end in April, has said the bank had no intention to roll back stimulus as inflation was set to slow below 2% next year.

    But the October minutes showed how many of his fellow board members are shifting their attention to the risk of an inflation overshoot and prospects of a stimulus withdrawal.

    “Given structural changes such as a shift away from globalization, past experiences in Japan may not necessarily apply. We can’t rule out the chance of a big overshoot in inflation,” one member was quoted as saying in the October minutes.

    The CPI data will likely be among key factors the BOJ will scrutinize when it produces fresh quarterly inflation forecasts at a two-day policy meeting ending on January 18.

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  • Snow piles deep in northern Japan, strands vehicles, 3 dead

    Snow piles deep in northern Japan, strands vehicles, 3 dead

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    TOKYO — Heavy snow in northwestern Japan since the weekend has left at least three people dead, stranded hundreds of vehicles on highways, disrupted trains and left thousands of homes without electricity, officials said Wednesday.

    The powerful weather system brought heavy snow to Japan’s northern coastal areas since Saturday, with snow piling up more than 2 meters (6.5 feet) in parts of Niigata, Yamagata and Aomori prefectures.

    Self-Defense Force troops helped clear Niigata highways, where hundreds of cars and delivery trucks were stuck in lines stretching more than 20 kilometers (12 miles), and to provide other support. Local volunteers also helped to provide food and other necessities to those stranded inside their vehicles for hours.

    With improving weather conditions, road closures were lifted Tuesday, but another snowstorm is forecast to affect the region toward the weekend.

    The Ministry of Economy, Trade and Industry said more than 10,000 homes, mostly in Niigata, were still out of power as of Wednesday morning, and delivery for convenience stores were delayed due to blocked roads.

    The Fire and Disaster Management Agency reported three deaths and 10 other people injured. A 85-year-old man died after falling into a ditch while removing snow at the in the hardest-hit town of Kashiwazaki in Niigata. In Hokkaido, a 63-year-old woman was crushed between two trucks trying to get out of the snow, and in Akita, a 73-year-old man also fell to the ground while removing rooftop snow and died, according to officials and reports.

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  • Bank of Japan shocks global markets with bond yield shift

    Bank of Japan shocks global markets with bond yield shift

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    The Bank of Japan on Tuesday shocked global markets by widening the target range for its 10-year government bond yield.

    Kazuhiro Nogi | Afp | Getty Images

    Global markets were jolted overnight after the Bank of Japan unexpectedly widened its target range for 10-year Japanese government bond yields, sparking a sell-off in bonds and stocks around the world.

    The central bank caught markets off guard by tweaking its yield curve control (YCC) policy to allow the yield on the 10-year Japanese government bond (JGB) to move 50 basis points either side of its 0% target, up from 25 basis points previously, in a move aimed at cushioning the effects of protracted monetary stimulus measures.

    In a policy statement, the BOJ said the move was intended to “improve market functioning and encourage a smoother formation of the entire yield curve, while maintaining accommodative financial conditions.”

    The central bank introduced its yield curve control mechanism in September 2016, with the intention of lifting inflation toward its 2% target after a prolonged period of economic stagnation and ultralow inflation.

    The BOJ — an outlier compared with most major central banks — also left its benchmark interest rate unchanged at -0.1% on Tuesday and vowed to significantly increase the rate of its 10-year government bond purchases, retaining its ultra-loose monetary policy stance. In contrast, other central banks around the world are continuing to hike rates and tighten monetary policy aggressively in an effort to rein in sky-high inflation.

    The YCC change prompted the yen and bond yields around the world to rise, while stocks in Asia-Pacific tanked. Japan’s Nikkei 225 closed down 2.5% on Tuesday afternoon. The 10-year JGB yield briefly climbed to more than 0.43%, its highest level since 2015.

    By midafternoon in Europe, the U.S. dollar was down 3.3% against the surging yen. The yen’s rally saw the currency notch the biggest single-day gain against the U.S. dollar since March 1995 (27 years, eight months, 20 days), according to FactSet currency data.

    U.S. Treasury yields spiked, with the 10-year note climbing by around 7 basis points to just below 3.66% and the 30-year bond rising by more than 8 basis points to 3.7078%. Yields move inversely to prices.

    Shares in Europe retreated initially, with the pan-European Stoxx 600 shedding 1% in early trade before recovering most of its losses by late morning. European government bonds also sold off, with Germany’s 10-year bund yield up almost 7 basis points to trade at 2.2640%, having slipped from its earlier highs.

    ‘Testing the water’

    “The decision is being read as a sign of testing the water, for a potential withdrawal of the stimulus which has been pumped into the economy to try and prod demand and wake up prices,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

    “But the Bank is still staying firmly plugged into its bond purchase program, claiming this is just fine tuning, not the start of a reversal of policy.”

    That sentiment was echoed by Mizuho Bank, which said in an email Tuesday that the market moves reflect a sudden flurry of bets on a hawkish policy pivot from the BOJ, but argued that the “popular bet does not mean that is the policy reality, or the intended policy perception.”

    Central banks won't reach inflation reduction targets in 2023, portfolio manager says

    “Fact is, there is nothing in the fundamental nature of the move or the accompanying communique that challenges our fundamental view that the BoJ will calibrate policy to relieve JPY pressures, but not turn overtly hawkish,” said Vishnu Varathan, head of economics and strategy for the Asia and Oceania Treasury Department at Mizuho.

    “For one, there was every effort made to emphasize that policy accommodation is being maintained, whether this was in reference to intended as well as potential step-up in bond purchases or suggesting no further YCC target band expansion (for now).”

    Spikes in volatility

    The Bank of Japan noted in its statement that since early spring, market volatility around the world had risen, “and this has significantly affected these markets in Japan.”

    “The functioning of bond markets has deteriorated, particularly in terms of relative relationships among interest rates of bonds with different maturities and arbitrage relationships between spot and futures markets,” it added.

    The central bank said if these market conditions persisted, it could have a “negative impact on financial conditions such as issuance conditions for corporate bonds.”

    Luis Costa, head of CEEMEA strategy at Citi, indicated on Tuesday that the market move may be an overreaction, telling CNBC there was “absolutely nothing stunning” about the BOJ’s decision.

    “You have to take this BOJ measure in the context of a positioning in dollar-yen that was obviously not expecting this tweak. It’s a tweak,” he said.

    Japanese inflation is projected to come in at 3.7% annually in November, according to a Reuters poll last week — a 40-year high, but still well below the levels seen in comparable Western economies.

    Costa said the Bank of Japan’s move was not geared toward combating inflation but addressing the “infrastructure and the dynamics of JGB trading” and the gap in volatility between the trade in JGBs and the rest of the market.

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  • So much for coordination: EU countries ignore pandemic lessons amid China’s COVID surge

    So much for coordination: EU countries ignore pandemic lessons amid China’s COVID surge

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    It didn’t take long for EU countries to abandon the biggest lesson of the pandemic. 

    The principle of collective response to health threats, which underpins the European Union’s so-called Health Union, was ignored at the first sign of trouble. 

    All it took was a surge in COVID cases in China for several EU countries to go their own way and implement travel measures that the bloc’s scientific experts have criticized as “unjustified.” 

    With China abandoning its zero-COVID policy, countries such as the U.S. and Japan have tightened border controls for travelers from China. Italy was the first EU country to act, imposing mandatory testing for travelers arriving from China, leaving the EU to scramble to get ahead of another disjointed bloc-wide response that marked some of the early days of the COVID-19 pandemic.

    A meeting of the EU Security Committee on Thursday resulted in countries deciding to not take any joint measures on travel, with the Commission tweeting that “coordination of national responses to serious cross border threats to health is crucial.” But that hasn’t stopped Spain from imposing its own measures, with the health ministry announcing Friday that travelers arriving from China need to be fully vaccinated or have a negative test.

    The fear from countries like Italy, the U.S., Japan and now Spain is that China could be a breeding ground for new variants. But the current scientific opinion is that this is unlikely, given that China is way behind the curve when it comes to variants and those that are present in China won’t be able to compete with the strains circulating outside the country. 

    But that’s not stopping an EU political spat from kicking off. 

    With Italian Prime Minister Giorgia Meloni urging the EU to take joint action, acknowledging that action by Italy alone “may not be completely effective unless it is taken by the whole EU,” she’s being joined by prominent EU parliamentarians. The head of the European Parliament’s center-right bloc, the European People’s Party’s Manfred Weber, has called for bloc-wide mandatory testing for travelers from China.

    Knee-jerk responses

    There are echoes of earlier national differences on COVID policies, “with more competition rather than coordination about what to do,” said Paul Belcher, consultant in European public health and adviser to the European Public Health Alliance. But Belcher said this was finally overcome with joint approaches on things such as vaccines and new EU structures that made decision-making processes easier. 

    These included the new EU Health Union, which is meant to ensure better health security coordination when a crisis hits. The underpinning principle? Prepare and respond collectively.

    Now, the disagreements over China “show that this default to knee-jerk national responses hasn’t entirely gone away,” said Belcher. 

    EU countries aren’t done with discussing the issue. POLITICO’s Brussels Playbook reports that the Council’s so-called integrated political crisis response mechanism — the EU’s defacto crisis forum — will take place next week.

    Patients in the lobby of the Chongqing No. 5 People’s Hospital in Chongqing | Noel Celis/AFP via Getty Images

    European Health Commissioner Stella Kyriakides also indicated to health ministers in a letter sent Thursday evening that the situation was “evolving.” She said that countries should assess their national practices regarding genomic surveillance of the virus — and to scale up capacity if needed — plus implement wastewater surveillance, including sewage water from airports.

    “If a new variant of the SARS-CoV2 virus appears — be it in China or in the EU — we must detect it early in order to be prepared to react fast,” Kyriakides said in the letter seen by POLITICO. Guidance from the Commission is also on its way.

    Where Kyriakides did express concern was with the lack of reliable epidemiological data coming out of China. The health commissioner has also reached out to her Chinese counterparts and offered public health expertise including variant-adapted EU vaccine donation.

    China’s secrecy is also a concern raised by World Health Organization Director General Tedros Adhanom Ghebreyesus, who has called for “more detailed information” from China.

    “In the absence of comprehensive information from #China, it is understandable that countries around the world are acting in ways that they believe may protect their populations,” he tweeted. 

    Carlo Martuscelli contributed reporting.

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    Ashleigh Furlong and Suzanne Lynch

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  • Nuclear fusion: The one relationship Russia and the West just can’t break

    Nuclear fusion: The one relationship Russia and the West just can’t break

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    SAINT-PAUL-LEZ-DURANCE, France — Russia’s brutal invasion of Ukraine has ripped apart Moscow’s ties with the EU and the U.S. on everything from energy to trade to travel — but there’s one partnership they can’t escape.

    Tucked away in a quiet sun-soaked corner of southern France, the International Thermonuclear Experimental Reactor (ITER) — an effort to harness the power of nuclear fusion to unleash vast amounts of clean energy — continues to purr along with the participation of Russian scientists and Russian technology.

    Earlier this month, scientists at ITER hailed a major breakthrough announced by the National Ignition Facility (NIF) at Lawrence Livermore National Laboratory in California, which said it had overcome a major barrier — producing more energy from a fusion experiment than was put in.

    The 35-nation ITER — born out of U.S. President Ronald Reagan’s and Soviet leader Mikhail Gorbachev’s 1985 meeting after decades of Cold War tensions — has no way of removing a member gone rogue; there’s no path to kicking Russia out of the experiment without torpedoing the entire scheme.

    The €44 billion project aims to test nuclear fusion — a process occurring in the center of stars — as a viable source of carbon-free energy that’s minimally radioactive. By injecting hot plasma that reaches 150 million degrees Celsius into a device and confining it with magnetic fields, hydrogen nuclei fuse into a helium nucleus and additional neutrons, releasing huge amounts of energy.

    The EU shoulders around half of ITER’s costs and manages its participation through the bloc’s Barcelona-based Fusion 4 Europe (F4E) agency; India, Japan, China, Russia, South Korea and the U.S. each have a roughly 9 percent share.

    As an active participant in ITER, Russia still has around 50 staff, including engineers, working onsite.

    Flags of participant nations fly outside the ITER complex | Photo by Victor Jack/POLITICO

    Immediately after Moscow launched its full-scale assault on Ukraine in February, the project was left in a tight spot, especially as Russian government representatives form part of the high-level decision-making board, the ITER Council, alongside their European and American counterparts.

    “It’s a difficult balance between condemning a member and facing the consequences for the project,” said ITER Communication Officer Sabina Griffith, who adds that there were initially intensive discussions about how to respond. Staff even briefly discussed putting a banner on the project’s website condemning the war, before scrapping the idea.

    Even if “the organization itself is apolitical … many people were questioning” what to do after the invasion began, according to ITER’s chief engineer Alain Bécoulet, who added that there was “a lot of sadness” among the staff.

    “The political situation so far is stable, [with] all members … declaring that they want to continue to work together,” he said, adding that the first ITER Council meeting after the invasion in June was “very constructive.”

    ITER Council members again “reaffirmed their strong belief in the value of the ITER mission” when they met at the site for their latest gathering in October.

    The experiment — over budget and over deadline — has already had its fair share of controversies. France’s nuclear safety authority in January suspended the assembly of the fusion reactor over safety concerns. F4E has been plagued by accusations of a high-pressure and overwork culture that critics have linked to at least one suicide.

    Vladimir Tronza | Photo by Victor Jack/POLITICO

    Unlike Geneva-based particle physics laboratory CERN — a collaborative research center that suspended its ties with Russia after the war began — ITER is an international agreement like the U.N., making it hard to suspend Moscow, said Bécoulet.

    That’s because up to 90 percent of the funding comes not in the form of cash but “in-kind” contributions of equipment, with participant countries each manufacturing a one-of-a-kind bespoke piece of the overall reactor that is then put together like a giant puzzle.

    While the set-up was designed to create specialized fusion expertise across the world and stimulate domestic manufacturing, it now means that if one member doesn’t deliver a part, the entire project could collapse, wasting billions.

    Even if they wanted to, countries couldn’t formally kick Russia out of the project, as there’s no clause in ITER’s constitution that would allow them to do so — instead, every other country would have to pull out.

    Going nuclear

    But that doesn’t mean the project hasn’t been impacted by Russia’s war.

    For one, Western sanctions and Moscow’s counter-sanctions have made it a minefield to procure Russian-made parts, according to Bécoulet.

    “It turns out 2022 is one very important year in terms of Russian deliveries” for the project, he said, with Moscow producing crucial parts including busbars — aluminum bars feeding the reactor with a huge electric current — and a 200-ton ring-shaped magnet that shapes the plasma and keeps it suspended in the reactor, called a poloidal field coil.

    Transporting the busbars by truck and the field coil — which is on its way from St. Petersburg to Marseille — by ship required “more paperwork, more justification to explain to the various European countries that no, we are not subject to sanctions — we have derogations,” he said. The “painful” process delayed deliveries by up to two months, he added.

    It also left Russian staff in the lurch, including Moscow-born assembly engineer Vladimir Tronza, who’s worked onsite since 2016.

    “In the beginning, everyone was like, ‘What’s going to happen? Should we look for another job? Should we pack and go back?’” he said, adding that Russian staff members were initially concerned that Moscow would exit the project.

    But Tronza said he hasn’t heard of Russian staff going home, with the “majority not interested to go back” given many have settled in southeastern France.

    “Collaboration is important — it’s important to keep the ties and … talk,” he said, adding that the project is “a global good.”

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    Victor Jack

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