Japan
This week's international macroeconomics focused on moves to strengthen economic cooperation between Japan and the United States, speculation regarding monetary policy in the foreign exchange and stock markets, and the increasingly tense situation in the Middle East. These multiple factors may intertwine and influence future trends in the global economy.
The Japanese and U.S. governments have officially announced in a joint document the second candidate for the Japan-U.S. Clean Energy and Digital Economy Partnership (JCEP), a plan to invest a total of 80 trillion yen in the United States. The agreement includes the construction of next-generation nuclear reactors and natural gas power generation facilities, and is expected to further deepen cooperation between the two countries to strengthen economic security and supply chains. This is attracting attention as a move to further strengthen the cooperative relationship in the economic field.
In the financial market, Bank of Japan Governor Ueda indicated his intention to continue raising interest rates, leading to speculation that the interest rate differential between Japan and the United States would narrow, and in the New York market, the yen appreciated against the dollar, with the yen at one point rising to the 157 yen level. In contrast, in the US stock market, major indexes continued to decline as there was a growing view that the US Federal Reserve (FRB) would not cut interest rates until 2027. Expectations of prolonged monetary tightening in the United States are weighing heavily on the market.
The situation in the Middle East remains tense. Israeli Prime Minister Benjamin Netanyahu emphasized the success of the airstrikes, saying they had eliminated Iran's nuclear and missile capabilities. It was also reported that a survey found that more than 60% of Americans expect Trump to send ground troops to Iran if he becomes president again, highlighting the uncertainty of the future regional situation. Japanese Prime Minister Takaichi is said to have explained Japan's position on sending ships to the Strait of Hormuz in a meeting with Trump.
These movements will affect the future market and