South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
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Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
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U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Japan’s economy shrank at a slower pace than analysts anticipated in the third quarter of 2025, with fresh GDP data showing that steady business investment helped cushion weak consumer spending. According to Monday’s release, Japan’s GDP fell 1.8% year-on-year for the September quarter, outperforming forecasts of a 2.5% decline. Still, the reading marked a reversal from the revised 2.3% growth seen in the previous quarter.
On a quarterly basis, GDP slipped 0.4%, slightly better than predictions of a 0.6% drop. The figure also contrasted with the 0.5% quarter-on-quarter expansion recorded earlier this year. Economists widely expected the downturn as Japan continued to contend with sticky inflation, soft private consumption, and persistent pressure on exporters facing elevated U.S. trade tariffs.
Despite a recently negotiated trade agreement between Tokyo and Washington, major Japanese exporters—particularly automakers—remained exposed to U.S. duties. This contributed to a 0.2% quarter-on-quarter contraction in external demand. However, stronger capital expenditure offered a bright spot. Large corporations increased investment in domestic infrastructure and modernization efforts, pushing overall capital spending up by 1%, compared to the previous quarter’s 0.8% rise.
This improvement helped offset sluggish private consumption, which managed just a minimal 0.1% increase. Persistent inflation, limited wage growth, and ongoing trade challenges continued to weigh on household spending through Q3.
Attention is now shifting toward policy direction under new Prime Minister Sanae Takaichi, who is expected to roll out fresh fiscal stimulus to support economic momentum. Meanwhile, traders have trimmed expectations of near-term interest rate hikes by the Bank of Japan, citing fragile economic conditions and growing political resistance. Capital Economics analysts said the latest GDP figures suggest the BOJ will likely hold rates steady in December, though sticky inflation could still prompt a rate hike as early as January.
