RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Thailand Inflation Remains Negative for 10th Straight Month in January 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Japan’s government has revised upward its economic growth forecast for the fiscal year ending next March and projected faster expansion in the following year, citing the positive impact of a large-scale stimulus package designed to support households and encourage business investment. The updated outlook reflects confidence that fiscal spending, tax incentives, and subsidies will help offset external risks and strengthen domestic demand.
According to the latest projections approved by the cabinet, Japan’s economy is now expected to grow by 1.1% in the current fiscal year, an increase from the 0.7% estimate released in August. Officials attributed the upward revision partly to a smaller-than-expected negative impact from U.S. tariffs. Growth is forecast to accelerate further to 1.3% in fiscal 2026, as solid consumption and rising capital expenditure are expected to compensate for weaker overseas demand.
These projections are the first economic estimates compiled under Prime Minister Sanae Takaichi’s administration, which has emphasized expansionary fiscal policy to cushion households from rising living costs while promoting investment in strategic growth areas. The government expects private consumption to increase by 1.3% next fiscal year, matching the pace projected for fiscal 2025. Tax breaks and easing inflation are seen as key factors supporting household spending.
Capital expenditure is also forecast to strengthen, with investment expected to rise 2.8% in fiscal 2026, compared with an estimated 1.9% increase in the current year. This improvement is linked to subsidies and tax incentives aimed at boosting investment in crisis management, infrastructure, artificial intelligence, and semiconductor production.
The revised estimates will be used as a basis for drafting the next fiscal year’s state budget, which is scheduled to be finalized on Friday. In November, the government unveiled a 21.3 trillion yen stimulus package that included payouts to families with children, subsidies to reduce utility costs, and spending to encourage growth-focused investment.
While the expansionary budget approach is expected to lead to record total spending, it has also raised market concerns about increased government debt issuance, contributing to higher Japanese government bond yields.
