The Fed Plays Safe, Japanese Markets Uneasy!
Japanese stocks ended lower on Thursday (06/19) as the Federal Reserve maintained interest rates and the Israel-Iran conflict pushed oil prices higher on supply concerns.
The Nikkei 225 fell 1.02%, or 396.81 points, to close at 38,488.34.
Federal Reserve Chairman Jerome Powell said U.S. goods prices may rise this summer because of President Donald Trump's tariffs, although the Fed still expects to cut interest rates later this year at a slower pace.
Powell warned against over-interpreting forecasts because data could change.
Meanwhile, tensions remained high after Iran's Supreme Leader rejected Trump's call for unconditional surrender. Trump, asked about Israel joining in an attack on Iran, said "anything can happen." Brent crude rose 25 cents to $76.70, while WTI rose 30 cents to $75.14 after previously fluctuating.
On the corporate side, Nippon Steel (TYO:5401) and its unit Nippon Steel North America completed their takeover of United States Steel after nearly two years of negotiations.
As part of the deal, they signed a National Security Agreement (NSA) with Washington and issued golden shares to the U.S. government, giving it oversight over key decisions.
Nippon Steel has committed to investing $11 billion in U.S. Steel by 2028, retaining its U.S. headquarters and management, and maintaining domestic production and trade autonomy.
Separately, Tokyo Gas (TYO:9531) said its LNG procurement remained unaffected by the Iran-Israel conflict, as it does not import from Qatar or the UAE.
The company could increase imports of U.S. LNG, which now account for 10% of its supplies, to add stability, Reuters reported.
Honda Motor (TYO:7267) unit Honda R&D tested its first experimental reusable rocket, reaching a height of 271.4 meters (800 feet) and landing within 37 centimeters (1.5 inches) of its target. The 6.3-meter-long rocket demonstrated key technologies for future reusable launch systems.
Source: Bloomberg
