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Japan’s August Household Spending Up 2.3%

TOKYO - Household spending in Japan rose 2.3% in August from a year earlier, marking the fourth consecutive month of increase, according to data released by the Ministry of Internal Affairs and Communications.

The survey showed that two-or-more-person households spent an average of 313,977 yen in August. In real terms, adjusted for inflation, this represented a 2.3% rise compared with August last year, continuing a four-month streak of positive growth.

The main driver was a sharp 22.4% jump in automobile-related expenses, including car purchases. Spending on cultural and recreational services also climbed 13%, reflecting trips to events such as the Osaka-Kansai Expo.

On the other hand, food spending fell 1.2%. In particular, rice purchases plunged 28.9% compared with a year earlier. The ministry attributed this decline partly to a rebound effect from August last year, when the issuance of a Nankai Trough Earthquake advisory triggered stockpiling, as well as increased sales of cheaper reserve rice varieties.

Source: TBS

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Typhoon No. 25 is moving north over waters south of Japan as of 3 p.m. on September 20, and is expected to bring two peaks of heavy rain to the Kanto region, first late on September 20 around midnight and again from the evening into the night of September 21 as the storm makes its closest approach.

Large and powerful Typhoon No. 25 is expected to make its closest approach to the Kanto region from the afternoon through the night of September 21, with flight cancellations already confirmed, planned train suspensions announced across Chiba Prefecture and possible expressway closures extending across the Tokyo metropolitan region.

A drone filming the illuminated Nagoya City Hall headquarters crashed into a building across the road shortly before 9 p.m. on September 17, with police investigating whether the flight may have violated Japan's Civil Aeronautics Act.

Volcanic smoke continues to rise from Mount Tokachi (Tokachidake), an active volcano in Daisetsuzan National Park in Hokkaido, one week after its eruption alert level was raised to Level 3, restricting entry to the mountain and prompting a series of cancellations at nearby hot spring inns just before the peak autumn foliage season.

Starbucks is considering selling a majority stake in its Japanese business, potentially valued at as much as $3 billion, or about 470 billion yen, as the U.S. coffee chain seeks to concentrate management resources on its struggling North American operations.

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The Bank of Japan raised its policy rate from 1.0% to 1.25% on September 18, taking borrowing costs to their highest level in 31 years and accelerating the pace of monetary tightening as persistent inflation and concerns over fiscal expansion put upward pressure on interest rates.

The yen strengthened by more than 1 yen against the dollar in a short period late on September 18 after the Bank of Japan conducted a rate check, a step commonly taken in preparation for possible intervention in the foreign exchange market.

Tokyo stocks rose sharply on September 18, with the Nikkei 225 climbing to around 65,350 in afternoon trading after the Bank of Japan raised interest rates to 1.25%, as the yen weakened and investors bought artificial intelligence and semiconductor-related shares.

The Bank of Japan raised its policy interest rate from 1.0% to 1.25% on September 18, lifting borrowing costs to their highest level in 31 years as policymakers moved to contain growing inflation risks, but the yen weakened sharply after the decision as markets focused on two dissenting votes and uncertainty over the pace of further increases.

A market spread is generally the difference between two market prices. Most commonly, traders use the term to describe the bid-ask spread: the difference between the highest price a buyer is currently prepared to pay and the lowest price a seller is prepared to accept.

Starbucks is considering selling a majority stake in its Japanese business, potentially valued at as much as $3 billion, or about 470 billion yen, as the U.S. coffee chain seeks to concentrate management resources on its struggling North American operations.

Tokyo stocks rose on September 17, with the Nikkei 225 closing at 64,136, up 213.25 points, as investors bought selected technology, pharmaceutical, insurance and consumer-related shares after the Federal Reserve’s rate hike, though gains were capped by a stronger dollar, renewed yen weakness and caution before the Bank of Japan’s policy decision.

Hakone, one of the Kanto region's most popular tourist destinations, has been left with just two operating gas stations after a series of closures, prompting the town to provide more than 10 million yen in subsidies to help reopen a shuttered facility.