A day of high drama is unfolding across the Asia-Pacific, as a political earthquake in Tokyo sends shockwaves through the market, a darling of the Chinese stock market suffers a brutal sell-off, and fresh data reveals the punishing impact of US tariffs on the region’s largest economy.
This turmoil is set against a backdrop of major strategic investments, as global capital continues to flow into key sectors in both Japan and China.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Japanese Prime Minister Shigeru Ishiba to step down
In a stunning move, Japanese Prime Minister Shigeru Ishiba announced he will step down, setting in motion a fierce and uncertain leadership race.
The resignation follows a series of humiliating election results that stripped his ruling coalition of its majorities in parliament.
“Having seen the US trade negotiations through, I felt that now is the right time to stand down and give way to my successor,” Ishiba said at a press conference on Sunday.
The move sent the yen tumbling and Japanese stocks soaring on Monday as a new wave of political uncertainty gripped the nation.
Morgan Stanley raises $885 million Japan real estate fund
Morgan Stanley has raised a colossal 131 billion yen ($885 million) for a new Japan-focused real estate fund, crushing its initial target of 75 billion yen.
The successful fundraise, which attracted capital from Japan’s giant Government Pension Investment Fund as well as foreign sovereign wealth funds, is a powerful sign of growing investor interest in Japanese property.
The fund will seek to invest in the residential, office, and industrial sectors in Tokyo and other major domestic markets, capitalizing on rising property values and still-low financing costs.
Pop Mart shares tumble on demand concerns and profit-taking
Shares in the high-flying Chinese toy maker Pop Mart International Group Ltd. have tumbled, falling as much as 8.9 percent in Hong Kong.
The slide reflects growing concerns over product demand for the producer of the popular Labubu doll, following signs of weaker demand in the secondary market and negative feedback on the quality of new products.
The sell-off was compounded by profit-taking, as the stock was officially included in the Hang Seng Index and the Hang Seng China Enterprises Index on Monday, a classic “sell the news” event.
Alibaba co-leads $140 million funding round in robotics startup
Chinese e-commerce giant Alibaba Group Holding Ltd. has co-led a 1 billion yuan ($140 million) funding round in the robotics startup X Square Robot.
The move is part of Alibaba’s major pivot to cement its leadership in emerging technologies, with the company having already pledged to spend $53 billion on AI infrastructure over the next three years.
The investment in Shenzhen-based X Square Robot, which focuses on the algorithms that power robotics rather than just hardware, is a clear signal of Alibaba’s strategic priorities.
China’s August export growth slows to a six-month low
China’s export growth slowed to a six-month low in August, a sign that the temporary boost from Beijing’s tariff truce with the United States is beginning to fade.
Outbound shipments rose just 4.4 percent year-on-year, missing forecasts and marking a sharp deceleration from July’s 7.2 percent increase.
The data, which was weighed down by weaker shipments to the US, keeps the pressure on policymakers in Beijing to deliver further fiscal stimulus to support the world’s second-largest economy.
Japan’s Q1 GDP growth revised sharply higher
In a surprising bright spot, Japan’s economy expanded at a much stronger rate in the fiscal first quarter than previously thought.
The government on Monday revised its real GDP growth for the April-June quarter to a seasonally adjusted 2.2 percent annualized rate, more than double the preliminary estimate of 1.0 percent.
The upward revision was driven by healthier-than-expected consumer spending and a buildup in inventories, providing a dose of good news amid the country’s political turmoil.
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