4/09/2025

BIZ & FINANCE THURSDAY | SEP 4, 2025

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Japan’s budget demands hit record ¥122 trillion

Rising household spending boosts Australian economy SYDNEY: Australia’s economy beat expectations in the second quarter, official data showed yesterday, with rising household spending the key driver of growth. The Australian Bureau of Statistics said the economy grew by 1.8% compared to the same period last year – up 0.4 percentage points from the first quarter. “What we saw in the June quarter was the equal fastest quarterly growth rate in almost three years, and the fastest annual growth rate in almost two years,” Treasurer Jim Chalmers told reporters. “Our economy is in an enviable position despite all our challenges,” he said. Data showed household spending was one of the main contributors to growth, with non-essential spending climbing 1.4% fuelled by end-of-financial-year sales and new product releases. Monday’s results were higher than the 1.6% growth anticipated by economists and Australia’s central bank, local media said. The Reserve Bank of Australia cut its key interest rate to its lowest in two years last month, but warned global challenges tied to trade tensions caused persistent uncertainty. And though inflation has eased since its peak of 7.8% in December 2022, the high cost of food, fuel, and housing remains a drag on consumer spending. – AFP The special administrative region’s securities regulator in November finalised its guidelines on confidential information communications ahead of share placements and large securities transactions, known as block trades, which came into effect in May this year. – Reuters Hong Kong probes HKEX, others over insider trading allegations: Bloomberg News HONG KONG: Hong Kong authorities are probing allegations of insider trading involving at least two individuals at Hong Kong Exchanges & Clearing Ltd, the Securities and Futures Commission (SFC), and others, Bloomberg News reported yesterday. Allegations also involve brokers and social media influencers, with authorities examining whether regulatory staff tipped off traders about sensitive announcements from dozens of listed companies over several years, the report said, citing people familiar with the matter. “Some of the announcements that were allegedly leaked involve privatisations, which flourished over the past few years,” the report added. Both HKEX and Securities Futures Commission did not immediately respond to Reuters’ requests for comments. The ongoing probe, which could last years, may result into charges or policy changes aimed at strengthening market transparency, Bloomberg reported.

maintain his fiscal hawkish stance despite growing pressure from opposition lawmakers calling for tax cuts and expanded subsidies. Market worries about the expansion of government spending, coupled with globally rising long-dated bond yields, sent the 30-year yield on Japanese government bonds to all-time highs this week. Ishiba’s administration will face its biggest test when the LDP will decide on Sept 8 whether to hold a race to choose a new party leader. Majority support would allow the party to proceed with a leadership contest, potentially unseating Ishiba before his term ends in 2027. A Jiji Press poll last month ranked former economic security minister Sanae Takaichi as the most popular candidate, with 15.9% support nationwide. The bond market views Takaichi’s reflationary stance with caution. – Reuters

spending, while social security outlays also continue to rise to support Japan’s fast-ageing society. The budget may be inflated further as some items have been requested without an amount being specified, while local media reported Prime Minister Shigeru Ishiba plans to ask ministers to compile an economic stimulus package to be funded by an extra budget. Growing uncertainty over Ishiba’s political fate could also weaken the government’s grip on spending. On Tuesday, some of Ishiba’s senior aides at the ruling Liberal Democratic Party (LDP), including secretary-general Hiroshi Moriyama, offered to resign from key leadership positions to take responsibility for the party’s defeat in the July 20 upper house election. Moriyama, a close ally of Ishiba and a key stabilising figure within the party, has played a central role in helping the prime minister

o Market worries send yields on 30-year govt bonds to all-time highs TOKYO: Japan’s budget requests for the next fiscal year set a record for the third consecutive year, the Finance Ministry said yesterday, amid growing market concern that political wrangling within the ruling party may hurt the country’s fiscal health. The combined ¥122.45 trillion (RM3.5 trillion) budget requests from government agencies highlight the struggle of streamlining spending for the industrial world’s most heavily indebted country. The requests were driven by record debt-servicing costs and record defence

People walking beside TSMC signage outside the company’s Museum of Innovation at its headquarters in Hsinchu, Taiwan. – AFPPIC US limits TSMC chipmaking tool shipments to China WASHINGTON: President Donald Trump’s administration has revoked Taiwanese semiconductor giant TSMC’s authorisation to export US chipmaking equipment to China without a licence, further restricting access to US technology in the country. “While we are evaluating the situation and taking appropriate measures, including communicating with the US government, we remain fully committed to ensuring the uninterrupted operation of TSMC Nanjing,” TSMC added in a statement. However, the ministry pointed out that TSMC’s Nanjing plant only accounts for around 3% of its total production capacity and “even lower” of the island’s overall chip production. “We estimate that this will not affect Taiwan’s overall industrial competitiveness,” it said in a statement.

TSMC is the world’s largest contract maker of chips that are used in everything from smartphones to missiles, and counts Nvidia and Apple among its clients. But the centre of its most advanced manufacturing remains in Taiwan, the self-ruled island Beijing claims as part of its territory. Taiwan’s Economic Ministry said yesterday that the US move was expected to “affect the predictability of the plant’s future operations”.

The move comes as the American Commerce Department moved to end the “validated end-user” (VEU) programme allowing select foreign semiconductor manufacturers to export US-origin goods and tech licence-free to make chips in China. “TSMC has received notification from the US Government that our VEU authorisation for TSMC Nanjing will be revoked effective Dec 31, 2025,“ said a spokesperson for Taiwan Semiconductor Manufacturing Company on Tuesday.

On Friday, the Commerce Department’s Bureau of Industry and Security said that former VEU participants will have 120 days after the new rule is published in the Federal Register to apply for and receive export licenses. But while the bureau plans to grant licences to allow these businesses to run existing China-based plants, it does not plan to issue licences for them “to expand capacity or upgrade technology”, it said. – AFP