Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Japan’s economy expanded at a much slower pace than expected in the fourth quarter of 2025, as weak business investment and soft exports weighed heavily on overall growth. According to official government data released Monday, Japan’s gross domestic product (GDP) increased just 0.2% year-on-year in the three months ending December 31, falling significantly short of market forecasts for 1.6%. The reading marked only a modest recovery from the 2.3% contraction recorded in the third quarter, which was the steepest decline in two years.
On a quarterly basis, Japan’s GDP rose 0.1%, also missing expectations of 0.4%. The primary drag came from capital expenditure, a key measure of business spending, which climbed only 0.2% in Q4 compared to projections of 0.8%. Sluggish corporate investment highlights ongoing uncertainty in the Japanese economy.
External demand, reflecting exports, showed no growth during the quarter as U.S. trade tariffs and escalating diplomatic tensions with China hurt Japan’s export-driven sectors. Chinese consumers reportedly boycotted Japanese goods and avoided travel to Japan following controversial remarks by Prime Minister Sanae Takaichi regarding potential military intervention in Taiwan. Meanwhile, private consumption, another critical pillar of economic growth, edged up just 0.1%, underscoring subdued domestic demand.
Inflationary pressures remained elevated, with the GDP price index rising 3.4%, slightly above expectations of 3.2%. Persistent inflation combined with weak economic activity complicates the outlook for the Bank of Japan, which raised interest rates by 25 basis points in January and signaled that further policy tightening will depend on growth and inflation trends.
The disappointing GDP data increases the likelihood of additional fiscal stimulus. With her ruling coalition securing a supermajority in Japan’s lower house, Takaichi is expected to push for expanded economic support measures, including tax breaks, fiscal payouts, and potentially a supplementary budget in early fiscal 2026 to bolster Japan’s fragile recovery.
