Japan’s Finance Minister Says FX Moves Not Based on Fundamentals

Japan's capital expenditure (capex) rose by 2.9% in the third quarter, indicating robust domestic demand and a positive outlook for the economy. This increase suggests that businesses are investing in growth, reflecting confidence in future economic conditions.

Japan's finance minister stated that the recent rapid decline of the yen is not fundamentally driven, indicating concerns over the currency's volatility. This statement reflects the government's ongoing efforts to stabilize the economy amidst fluctuating exchange rates.

Micron Technology Inc. has announced plans to invest ¥1.5 trillion ($9.6 billion) in a new plant in western Japan, aimed at producing memory chips specifically for artificial intelligence applications, as reported by Nikkei. This investment marks a significant step in enhancing Japan's semiconductor manufacturing capabilities.

Jasmin Argyrou, Head of Global Investment Management Australia at UBS, expressed a positive outlook for global equities in 2026, highlighting potential growth drivers in Europe, emerging markets, and Japan during her interview with Bloomberg.

Toyota announced plans for a significant investment in the United States, driven by strong output and sales performance. This move comes amid a challenging economic landscape shaped by tariffs affecting the automotive industry, particularly for Japanese automakers facing high export duties to the U.S.

Japan's Prime Minister Sanae Takaichi's cabinet has approved a draft supplementary budget for the fiscal year ending March 2026, amounting to 18.303 trillion yen (approximately $117.10 billion). This decision reflects the government's intent to stimulate the economy amid ongoing financial challenges.