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Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Trump Questions USMCA Renewal as Trade Talks Continue 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
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.
