Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Gold Price Hits Annual Low as Fed Rate Hike Bets and Sticky Inflation Weigh on Bullion 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Trump Questions Housing Bill as He Prioritizes SAVE America Act 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Dollar Slips Ahead of Key U.S. Jobs Data as Fed Rate Outlook, ECB, and Iran Talks Shape Forex Markets 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
Oil Prices Slip as U.S.-Iran Peace Talks and Strait of Hormuz Risks Keep Markets on Edge 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Japan is considering a temporary reduction in its food sales tax as part of broader efforts to support households struggling with rising living costs. According to a report by the Mainichi newspaper, the government is examining a two-year cut to the current 8% consumption tax on food products, with the measure expected to begin in April 2027.
The report, which cited an unnamed government official, said the proposed timeline would allow Prime Minister Sanae Takaichi’s administration to highlight the tax relief initiative ahead of municipal elections scheduled for April 2027. The move is seen as a key component of the government’s strategy to address inflation concerns and improve consumer confidence.
While the original proposal called for eliminating the food tax entirely, authorities are reportedly considering lowering the rate to 1% instead of 0%. The adjustment is intended to avoid the extensive system modifications that retailers would need to make to cash registers and accounting software to accommodate a zero-tax rate. By maintaining a minimal tax level, the government could implement the policy more efficiently and reduce administrative burdens on businesses.
Economy Minister Minoru Kiuchi declined to comment on the report during a press briefing, offering no details regarding ongoing discussions.
Japan currently applies an 8% consumption tax to food items and a 10% tax rate to most other goods and services. Revenue from these taxes plays a significant role in funding social welfare programs, particularly as the country faces growing costs associated with its rapidly aging population.
Prime Minister Takaichi first announced plans in January to suspend the food tax for two years, arguing that temporary relief was necessary to help families cope with persistent inflation and higher living expenses. Specific details of the proposal are expected to be finalized through negotiations involving both ruling and opposition parties.
The announcement of a potential food tax reduction previously sparked concern among investors, contributing to a rise in Japanese government bond yields. Market participants viewed the proposal as a potential challenge to Japan’s fiscal health, given the country’s already substantial public debt and increasing social welfare obligations.
