Japan economy

Manufacturers’ sentiment may gradually improve as concerns over energy supplies ease

The yen hit a near 40-year low in July, just shy of 164 per dollar, before authorities intervened

But the two countries’ differences – fiscal, demographic and political – point to a longer recovery for China

July core CPI rises 1.8% year on year, matching forecast

Business confidence improved to its highest since February

The Topix has risen more than 67% from its April 2025 low on dollar-based returns

Real GDP grows 1.1%; that is slower than a revised 1.9% pace in the previous quarter and falls short of forecasts for 2% expansion

Traders see a 79% chance of a hike when the BOJ’s board meet on Sept 18

At its meeting last month, the Japanese central bank held its policy rate at 1% and signalled that it could possibly raise it in September