Japanese Stocks Weaken, BOJ Hints at Potential Interest Rate Hike
Japanese stocks closed lower on Tuesday (September 30) after minutes of the Bank of Japan (BOJ) meeting indicated the possibility of a future interest rate hike. The Nikkei 225 index fell 0.25%, or 111.12 points, to 44,932.63. The minutes of the September 18-19 meeting showed differing views among board members, with some supporting a rate hike due to high inflation, while others opted for caution due to global economic uncertainty, particularly in the United States.
On the domestic economic front, government data showed mixed results. Japanese construction orders fell 13.3% in July for the fourth consecutive month, while retail sales plunged 1.1% in August, marking the first decline in three years. Factory production also weakened, falling 1.2% compared to the previous month, although manufacturers expected a rebound in September and October. The declines occurred in the food, fuel, and motor vehicle sectors, while non-residential investment surged more than 20%.
In the corporate sector, several companies recorded significant developments. Heartseed lost its global partner, Novo Nordisk, which discontinued its cell-based heart therapy collaboration to refocus on diabetes and obesity. Nxera Pharma, on the other hand, saw positive news, receiving a $10 million milestone payment from AbbVie for a neurological disease research collaboration. Meanwhile, Veritas In Silico announced plans to relocate its research institute to Kawasaki City in 2026 as part of its expansion in AI and research.
Source: Newsmaker.id
