Japan

• South Korean stocks experienced their sharpest daily loss in over four months on July 28, 2026, with the Kospi sinking 10.84% to close at 6,023.66. • The decline was driven by an Asia-wide sell-off in semiconductor shares, specifically impacting industry giants Samsung and SK Hynix. • This volatility marks a shift in regional market dynamics, as South Korean semiconductor trends are now driving wider swings in Japanese stocks, reversing the previous pattern.

• Asia-Pacific technology stocks experienced a broad rally on August 5, with indices in Japan and South Korea surging by over 3%. • The rebound was primarily driven by a sharp decline in oil prices and strong performance from AI-related sectors. • This shift signals a transition in the "AI trade," moving from initial infrastructure investment toward the practical deployment and application of AI in business processes.

• Asian stock markets experienced a significant jump, with Japanese and South Korean indices surging as the artificial intelligence rally returned. • The positive momentum follows a record-breaking close on Wall Street, which has also pushed U.S. stock futures higher. • While the broader AI sector is rallying, specific companies like SpaceX and AMD saw dips following their recent earnings reports.

• Commissioner Chen Chun-An of Taipei's Department of Economic Development led a delegation of 15 technology companies to Osaka, Kobe, and Kyoto, Japan, from June 30 to July 3, 2026. • The initiative, organized by StartUP@Taipei, focused on strengthening AI healthcare ecosystems and fostering innovation linkages between Taiwan and Japan's Kansai region. • This collaboration matters as it aims to expand market reach for Taiwanese startups and integrate advanced AI healthcare solutions into the Japanese medical landscape.

• Asian stock markets showed mixed results as technology shares stabilized following a significant AI-driven sell-off. • Alibaba shares rose approximately 0.7% after the company unveiled Qwen3.8-Max, its largest AI model to date, which reportedly outperforms competitors like Anthropic’s Fable 5 and Moonshot’s Kimi K3 at a lower cost. • Despite Alibaba's gains, the Hang Seng index fell 0.6%, while South Korea’s KOSPI traded 0.3% lower after a steep 5% drop on Monday.

• The Japanese yen surged up to 5% over three trading sessions following suspected currency interventions by US and Japanese authorities. • Traders are closely monitoring the market for further interventions to stabilize the currency pair against the US dollar. • This volatility comes amid heightened focus on potential US economic policies and the influence of figures like Scott Bessent and Donald Trump.

Most of the zoo’s 16 lions have struggled to cope with high humidity this summerThree lions from a Tokyo zoo have died from suspected heatstroke and others are undergoing treatment, a spokesperson said on Tuesday, as the big cats struggle in Japan’s high levels of humidity.Japan sweltered through its hottest summer on record last year and parts of the country have hit 40C in recent weeks, qualifying for the new “cruelly hot day” designation. Continue reading...

Prime minister Sanae Takaichi visited Kumamoto prefecture almost a week after a magnitude 7.1 quake hit, killing 38 peopleJapan’s prime minister, Sanae Takaichi, has visited the south-western prefecture of Kumamoto, where recovery efforts are being hampered by heat and a lack of water supplies, almost a week after a magnitude 7.1 earthquake killed dozens and caused widespread damage.Thirty-eight people died during the quake, including one person who died of apparent heatstroke while taking shelter in a car in hot weather, officials said on Monday. Continue reading...

• The Japanese yen rose nearly 1% against the U.S. dollar on Monday as investors anticipated a potential coordinated currency intervention between Japan and the United States. • This rally is driven by market expectations that Japanese authorities will act to stabilize the currency, alongside shifting outlooks regarding the Bank of Japan's monetary policy. • The movement is significant as it reflects growing volatility in the USD/JPY pair and highlights the tension between U.S. economic strength and Japanese currency stability.

Soaring temperatures continue to sweep parts of Europe, while Okinawa faces powerful winds and storm surgesEurope live – latest updatesUnbearable, record-breaking heat has dominated the summer of 2026 across much of Europe. New records were set in central Europe last week, with Wieselburg in Austria registering a new July peak of 40.3C (104.5F). This is particularly significant as it is just 0.2C behind the all-time high, set in the August of 2003.However, not all of the northern hemisphere has experienced extreme heat and aridity. Vancouver recorded its wettest July since 2016 and the third wettest since 2008, with 33.6mm of rain. While that total may not appear exceptional, it is only a touch above the 1991-2020 climate average, highlighting how unusually dry July has been in the Canadian city over the past decade. Continue reading...

• Malaysia is rapidly emerging as a primary growth standout in Asia by positioning itself as a strategic hub for artificial intelligence and semiconductor manufacturing. • The country's growth is highlighted by a shift in investment trends, exemplified by a manufacturer that pivoted from plans to build a factory in the Middle East to establishing operations in Malaysia. • This turnaround is significant as it leverages global demand for AI-driven hardware and chip production to boost the national economy.

• Japan has confirmed a joint currency intervention with the United States to stabilize the yen. • U.S. Treasury Secretary Scott Bessent stated that Washington will not hesitate to participate in further joint interventions if necessary. • This coordinated action aims to curb excessive volatility in the foreign exchange market and prevent the yen from weakening further.

• Tokyo is expected to announce a joint action with the United States to support the Japanese yen, marking the first such coordinated effort since 2011. • The move follows comments from US Treasury Secretary Bessent on July 30, who stated that the yen appears to be "very undervalued." • This intervention aims to stabilize the currency market and counteract the significant depreciation of the yen against the US dollar.

• On July 31, 2026, the Japanese stock market rose sharply following a surge in the yen, which briefly hit the 157 range after plunging approximately 5 yen on July 30. • The currency volatility sparked widespread speculation that Japanese currency authorities had intervened in the market to stabilize the yen. • Analyst Hiroki Miyano warns that investing in Nikkei 225-linked ETFs primarily tracks the global AI cycle and semiconductor companies rather than the broader Japanese economy.

Treasury secretary’s notepad, photographed by Reuters on Friday morning, prompts questions over US plansDuring a cabinet meeting at Camp David on Friday, the US treasury secretary Scott Bessent carelessly revealed plans for the US to buy $5bn-$10bn ⁠in Japanese yen in a scribbled “to do” list left visible to a Reuters photographer.The image, taken over Bessent’s shoulder during a portion of the meeting open to journalists, showed a Camp David notepad with the underscored words “To Do” followed by “Buy Japanese Yen (JPY) $5-10 bil”. Continue reading...

• Japan's Bank of Japan and South Korea's Bank of Korea have reportedly engaged in a rare joint market intervention to stabilize the yen and the won. • Analysts suggest that because the two currencies are tightly coupled, a coordinated effort could double the impact on the forex market compared to unilateral actions. • This move matters as both nations seek to combat excessive currency volatility and protect their respective economies from rapid depreciation.

• Japanese and South Korean stock markets experienced a sharp rebound on July 31, with the Nikkei 225 rising 4.10% and the KOSPI surging 13%. • Major tech players led the rally, as SK Hynix jumped over 27% and Samsung gained more than 22% following positive U.S. earnings from AI-related giants. • The recovery is attributed to eased concerns over AI investments and a significant unwinding of extreme leverage in South Korea, which helped cool market panic.

Soldiers and emergency workers are combing through a badly damaged shopping mall and collapsed houses looking for trapped survivorsThe death toll from the major earthquake that hit Japan on Tuesday has risen to 17, as the search for trapped survivors inside a badly damaged shopping mall and collapsed houses in the country’s south-west continues.The magnitude 6.8 earthquake that struck the Kumamoto prefecture on the island of Kyushu has injured at least 62, the prefectural government said. That number has steadily grown, fanning fears it will rise. Continue reading...

Rescuers pulling people from the wreckage in southern Japan in a haunting repeat of disaster that struck 10 years ago‘Race against time’: Japan earthquake death toll rises as rescue teams search for missing“There was a voice coming from the collapsed house, and I could see a hand,” Tomohide Nagata, a volunteer firefighter, told the Kumamoto Nichinichi Shimbun. “One of our senior members crawled in and pulled him out. He was bleeding from the head, but I’m so glad he survived.”Nagata had heard a noise coming from one completely flattened home in the rural town of Hikawa, close to the epicentre of Tuesday’s 6.8-magnitude earthquake in southern Japan. The town was one of the areas hardest hit, with numerous older houses collapsing. Terrified of the ongoing aftershocks, many residents spent Tuesday night in their cars outside Hikawa’s town hall, where staff distributed food and drinks. Continue reading...

Emergency workers are continuing their search for survivors in southern Japan after yesterday’s powerful earthquake ‘Race against time’: Japan earthquake death toll rises as rescue teams search for missingEmergency workers are continuing their search for survivors in southern Japan after yesterday’s powerful earthquake left widespread devastation, with buildings collapsed, roads severely damaged and emergency teams digging through rubble.At least 13 people have been killed and many reported missing after the earthquake struck the Kumamoto area on the southern main island of Kyushu with a magnitude of 7.1, according to the Japan meteorological agency. The US Geological Survey measured it at magnitude 6.8. Continue reading...

Military mobilises thousands of personnel after quake on southern Kyushu island that registered a maximum 7 on the Japanese shindo intensity scale At least five people have been killed, and nine are missing after a 6.8 magnitude earthquake struck southern Japan on Tuesday, injuring hundreds and knocking out power and water to tens of thousands.The quake – which registered a maximum 7 on the Japanese shindo intensity scale – hit at 4.27pm on Tuesday, centred on Kumamoto prefecture on the southern Kyushu island. Continue reading...

• A magnitude 7.1 earthquake struck Kumamoto on Japan's southern main island of Kyushu on Tuesday. • Prime Minister Sanae Takaichi reported multiple injuries and significant damage to buildings, bridges, and roads. • The seismic event triggered widespread blackouts and fires across the affected region.

• On July 28, Asian stock markets suffered a "Black Tuesday" crash, with South Korea's KOSPI plunging over 10% and triggering a circuit breaker. • Major semiconductor firms Samsung Electronics and SK Hynix saw shares tumble more than 12%, following a 2.23% drop in the U.S. Philadelphia Semiconductor Index. • Market anxiety was further intensified by the South Korean Financial Services Commission's plan to limit retail investor purchases of single-stock leveraged ETFs.

Deaths expected as Kumamoto shook by 6.8-magnitude quake, knocking out power and damaging buildingsA 6.8-magnitude earthquake has shaken south Japan, leaving at least 50 people injured, with some trapped and presumed dead inside a partly collapsed shopping mall.The earthquake hit the Kumamoto prefecture on the southern Kyushu island late on Tuesday afternoon, knocking out power to thousands of homes and damaging roads, bridges and buildings. Continue reading...

An ⁠earthquake ​with ⁠a ⁠preliminary magnitude ​of ‌7.1 ‌struck ‌the country’s Kumamoto prefectureJapan’s prime minister, Takaichi Sanae, has confirmed that a tsunami advisory was issue for Ariake Bay and Yatsushiro Sea after the earthquake hit the Kumamoto prefecture.She wrote on social media:At around 4:27 p.m. today, an earthquake with its epicenter in the Kumamoto region of Kumamoto Prefecture occurred, and strong shaking with a maximum seismic intensity of 7 was observed in Uki City and Makigawa Town in Kumamoto Prefecture.In connection with this earthquake, a tsunami advisory has been issued for Ariake Bay and Yatsushiro Sea, and tsunamis of about 1 meter are expected. Please refrain from approaching the coast.From me, to the relevant ministries and agencies - Urgently grasp the damage situation - Closely coordinate with local governments, and under the policy of prioritizing human life, the entire government will fully engage in emergency disaster response measures such as lifesaving and rescue for the affected people - Timely and accurate provision of information to the public regarding tsunamis and damage, etc. I have instructed these three points.To those in the areas where the shaking was strong, I would like to ask you to continue to be vigilant against the occurrence of earthquakes of the same magnitude. Continue reading...

• China and Japan are providing conflicting accounts regarding whether their respective foreign ministers held discussions during last week's ASEAN regional meeting. • The disagreement centers on a potential interaction involving Japan’s Foreign Minister Toshimitsu Motegi during the 27th ASEAN Plus Three Ministers’ Meeting in Pasay, Philippines. • This discrepancy highlights the ongoing diplomatic tension and lack of coordination between the two East Asian powers.

• Asian stock markets rose, with Japan and South Korea leading the gains, as geopolitical tensions involving Iran began to ease. • Investors are shifting their focus toward a critical week of corporate earnings from U.S. megacap technology firms. • Key financial reports are expected from Microsoft and Meta Platforms on Wednesday, followed by Apple and Amazon on Thursday.

• Nobuo Miwa, president of the Tokyo-based security firm S&J, warns that artificial intelligence is making cyberattacks significantly faster and more sophisticated. • Miwa highlighted that AI now enables the creation of malicious attack programs "in the blink of an eye," drastically reducing the time required for hackers to develop threats. • This shift matters because it lowers the barrier to entry for attackers and increases the speed at which vulnerabilities can be exploited across networks.