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Yoshihiko Noda, leader of Japan's largest opposition party, urged the Bank of Japan to raise interest rates and continue phasing out its controversial stimulus program. He argued that the program has contributed to undesirable declines in the yen's value.
Sanrio Co., the owner of Hello Kitty, has seen its stock surge over 150% in 2024, making it a standout performer on the Tokyo Stock Exchange. This remarkable growth has positioned the company as a leader in the wholesale sector, significantly outpacing the benchmark Topix index by tenfold.
Paytm Singapore is set to sell its Stock Acquisition Rights in PayPay Corporation to SoftBank Vision Fund 2 for approximately Rs 2,364 crore (JPY 41.9 billion). The deal, expected to close by December 2024, is subject to corporate approvals and customary conditions. Proceeds will bolster Paytm's cash reserves for future initiatives.
Global real estate markets are showing signs of recovery, with transaction activity gradually increasing after bottoming out in late 2023. While the US economy remains robust, the office sector continues to struggle, experiencing significant value declines, contrasting with stability in residential, retail, and industrial sectors. Interest rate cuts are expected to improve investor sentiment, although financing costs may still pose challenges in the near term.
The Asia Pacific real estate market shows resilience amid a gradual economic slowdown, with GDP growth projected at 3.9% for 2024 and 2025. While office cap rates have seen minimal expansion, investor interest remains strong due to robust rental outlooks, particularly in Australia and South Korea, despite mixed leasing activity and rising vacancy rates in logistics. Geopolitical risks, particularly from potential US tariffs on China, pose challenges, but some APAC countries may benefit from supply chain adjustments.
South Korea's yield spread has improved significantly, with the 5-year interest rate swap dropping to about 2.9% due to falling inflation expectations. While office cap rates have only slightly increased, strong investor interest persists, driven by a robust rental outlook. In the broader APAC region, GDP growth is projected at 3.9% for 2024 and 2025, despite potential geopolitical risks, particularly from US-China trade tensions.
South Korea's yield spread has improved significantly, with 5-year interest rates dropping to about 2.9% amid falling inflation expectations. While office cap rates have seen minimal expansion, strong investor interest persists due to a robust rental outlook. APAC GDP is projected to grow 3.9% in 2024 and 2025, despite potential geopolitical risks, particularly from a possible 60% US tariff on China, which could negatively impact the region's trade dynamics.
The Asia Pacific economy is projected to grow 3.9% in 2024 and 2025, despite a gradual slowdown and potential risks from geopolitical shifts, particularly a looming US tariff threat on China. While leasing activity showed mixed results, with stable retail performance and rising vacancy rates in logistics, capital markets are beginning to recover, particularly in Australia and South Korea, despite a significant decline in Japan. Cap rates are stabilizing in most regions, signaling the potential end of the cap rate upcycle.
Nomura Holdings Inc. has terminated senior trader Takushi Sawada following a probe by Japanese regulators, who found he engaged in manipulative trading of derivatives linked to the country's sovereign debt. The transactions involved "layering," a form of spoofing, leading to the firm's scandal.
All three major US stock indices reached record highs, with the Dow Jones surpassing 45,000, buoyed by positive remarks from Fed Chair Powell on economic resilience and inflation progress. Meanwhile, the ASX 200 also hit a new peak, though momentum waned after Australia's Q3 GDP growth slowed to 0.8%, the weakest since the 1990s recession. Key economic indicators are set for release next week, including the RBA's interest rate decision and US CPI data.
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