Tokyo, Japan – Bank of Japan board member Nakamura raised concerns about the country’s ability to meet its inflation target during a recent speech in Sapporo. Nakamura’s remarks cast doubt on the likelihood of inflation reaching the desired 2% by 2025 due to subdued household spending and limited price increases by companies. The central bank had previously forecasted core consumer inflation to hit 1.9% in fiscal years 2025 and 2026.
In another economic development, Australia experienced a 2.5% drop in exports in April, marking the lowest level since December 2021. The decline, driven by decreases in metal ores and minerals exports, contributed to a rise in the country’s trade surplus to AU$6.55 billion. This figure surpassed expectations and reflected a 7.2% decrease in imports.
On a different note, Foxconn, a multinational electronic contract manufacturer, reported a 22% year-on-year increase in revenue in May, reaching a record high. The company’s strong performance in the traditionally slower second quarter was attributed to heightened demand for AI servers. As a result, Foxconn’s shares rose by 2.56% on Thursday.
Meanwhile, SoftBank Group saw its stock surge by over 5% following news of activist investor Elliott Management’s call for a $15 billion share buyback. The Japanese investment firm’s partnership with healthcare technology company Tempus AI for a U.S. IPO aiming for a valuation of up to $6.10 billion also contributed to investor optimism.
In the tech sector, Nvidia achieved a milestone by reaching a market capitalization of $3 trillion for the first time, driven by the increasing demand for AI-related products. The company’s shares rose by more than 4%, further solidifying its position among tech giants like Microsoft and Apple in the $3 trillion market cap club.
In the U.S., the ISM services index exceeded expectations in May, signaling a faster expansion in the services sector. The report showed increased activity in new export orders and production, while imports saw a decrease. Employment figures improved slightly, while price levels remained steady.