Uncertainty over the global economy, sharp yen appreciation and stock-market declines

「Meanwhile, heightened geopolitical risks, particularly in the Middle East, and rising prices are having a substantial impact on business, requiring cautious management decisions. In the financial markets, sharp foreign exchange fluctuations have occurred due to government policies including foreign exchange intervention, and many other concerns remain, with unstable conditions continuing.」

「In the international environment, unstable foreign exchange markets have persisted due to the US government's tariff policies and the Bank of Japan's policy rate hikes. There are also many concerns, including volatility in the financial and capital markets, and unstable conditions continue.」

「There are also many concerns, including the impact of sharp foreign exchange fluctuations resulting from a review of the Bank of Japan's monetary policy and volatility in the financial and capital markets, and the international situation remains unstable.」

「Meanwhile, the global economy remains uncertain due to geopolitical risks, including the invasion of Ukraine and conflicts in the Middle East.」

「The domestic business environment is moving toward normalization of economic activity. However, economic conditions remain difficult to forecast due to soaring raw material prices associated with increased uncertainty in the global economy and sharp foreign exchange fluctuations resulting from factors including the Japan-US interest rate differential.」

「During the cumulative third quarter under review, Japan's economy showed signs of recovery in personal consumption and inbound demand after restrictions on movement under COVID-19 countermeasures were eased. However, the outlook remains uncertain due to the rapid depreciation of the yen caused by monetary tightening policies in Europe and the United States, soaring raw material prices resulting from higher prices, and other factors. The global economy is also expected to continue facing risks weighing on economic activity, including global inflation, the prolonged situation in Ukraine, and concerns over a slowdown in the Chinese economy, in addition to similar developments.」

「During the cumulative second quarter under review, Japan's economy showed signs of a gradual recovery, led by personal consumption, as restrictions on movement were eased following the reclassification of COVID-19 as a Class 5 disease. However, the outlook remains uncertain due to the rapid depreciation of the yen caused by monetary tightening policies in Europe and the United States, soaring raw material prices, and other factors. In the global economy, in addition to similar developments, risks weighing on economic activity, including trends in infectious diseases and developments in Ukraine, are expected to persist.」

「Meanwhile, the global economy, against the backdrop of developments in Ukraine, remains unstable, including due to soaring resource prices. The yen has also continued to weaken amid policy rate hikes by foreign countries to address rising prices, and uncertainty over the outlook persists.」

「In Japan, economic activity is moving toward normalization as measures to prevent the spread of COVID-19 have been eased. However, overseas economic conditions remain uncertain due to the prolonged US-China trade tensions and rising resource prices against the backdrop of developments in Russia and Ukraine.」

「During the cumulative third quarter under review, Japan's economy showed a gradual recovery in economic activity following the easing of restrictions on movement and other COVID-19 countermeasures. However, cost increases due to soaring raw material prices and the weaker yen continue, leaving the outlook uncertain.」

「During the cumulative second quarter under review, Japan's economy showed signs of normalization in economic activity following the easing of restrictions on movement and other COVID-19 countermeasures. However, the outlook remains uncertain due to the rapid depreciation of the yen against the US dollar and other currencies caused by monetary tightening policies in Europe and the United States, soaring raw material prices, and other factors. The global economy is also expected to require considerable time to recover, particularly in Europe, due to the prolonged supply problems involving energy and food resulting from Russia's invasion of Ukraine.」

「Meanwhile, the global situation remains uncertain due to the renewed spread of COVID-19 and worsening conditions in Ukraine, among other factors, and uncertainty over the outlook, including soaring raw material and crude oil prices, persists.」

「In the global economy, efforts were being made in various countries to resume economic activity. However, the recovery is expected to slow further due to worsening shortages of parts and raw materials, rising resource prices, and the rapid spread of new variants.」

「During the cumulative third quarter under review, Japan's economy showed signs of a recovery in personal consumption, against the backdrop of progress in vaccination and other factors. However, continued attention is required regarding the risk of renewed spread of infectious diseases, and the outlook remains uncertain.」

「Uncertainty remains over such factors as the US-China trade tensions and when the spread of COVID-19 will subside, and difficult conditions are expected to continue.」

「In overseas economies, economic conditions remain uncertain due to the prolonged US-China trade tensions, the UK's withdrawal from the EU, and the spread of COVID-19.」

「During the cumulative third quarter under review, economic activity was severely restricted by the spread of COVID-19. Following the lifting of the state of emergency, the economy appears to have been gradually recovering, supported by various campaigns and other measures under the government's broad economic stimulus programs. However, concerns remain over the impact of the third wave on the economy, and difficult conditions with an uncertain outlook are expected to continue.」

「During the first six months of the current fiscal year, economic conditions remained challenging due to the spread of COVID-19. The outlook also remained uncertain regarding US-China trade friction and when the spread of the virus would subside, and conditions are expected to remain difficult.」

「During the first quarter of the current fiscal year, the global economy slowed due to the impact of the worldwide spread of COVID-19, including stagnation in economic activity and declining consumption. As the effects are expected to persist, close attention is required regarding their impact on the overseas and Japanese economies.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the first six months of the current fiscal year, the economy continued to recover gradually against the backdrop of improvements in employment and income conditions. However, it became characterised by a rapid decline in share prices and a trend toward yen appreciation against the backdrop of intensifying US-China trade friction and rising tensions in the Middle East, leaving the outlook uncertain.」

「During the first quarter of the current fiscal year, personal consumption showed signs of recovery against the backdrop of improvements in employment and income conditions. However, while the economy maintained a gradual recovery trend due to sluggish growth in real income resulting from rising prices, attention was required regarding the impact of overseas economic developments, including US-China trade issues and negotiations over the UK's withdrawal from the EU, on economic conditions in Japan.」

「The outlook remained uncertain due to uncertainties including the impact of US protectionist policies on international financial markets, economic developments in East Asia, particularly China, and the situation in North Korea.」

「During the cumulative third quarter accounting period, the business environment remained uncertain. Consumer spending followed a gradual recovery trend due to improvements in employment, income and other conditions, but concerns remained over sluggish real income growth due to rising prices, the impact of natural disasters in Japan and the effects of expanding trade friction.」

「However, the overseas economy also showed signs of slowing due to concerns over trade friction and geopolitical risks, and the environment surrounding companies remained uncertain.」

「While the economy maintained a gradual recovery trend as corporate earnings and employment and income conditions continued to improve, attention was also required regarding the impact on economic conditions of developments in the political and economic situation in the United States and rising uncertainty in the overseas economies of Asia and Europe.」

「Meanwhile, the outlook remained uncertain for the overseas economy, amid concerns over the economic impact of US economic policy on international financial markets and the economic impact of rising geopolitical risks in Northeast Asia.」

「However, the impact on the domestic economy remained uncertain due to rising geopolitical risks and political instability overseas.」

「During the first six months of the current fiscal year, the business environment gradually recovered, with corporate earnings improving and some signs of a recovery in consumption supported by solid employment and income conditions. However, the environment surrounding companies remained uncertain due to concerns over the US political system, developments in negotiations over the UK's withdrawal from the EU and the outlook for the situation in the Middle East.」

「During the first quarter of the current fiscal year, some weakness remained in the economic environment of emerging markets, while the international situation remained uncertain due to the outlook for national elections in European countries and the policies of the new US administration. The impact of these developments on economic conditions therefore requires close attention.」

「Although the yen appreciated and share prices fell due to stagnation in emerging-market economies and the UK's withdrawal from the EU, the trend reversed after the US presidential election, with the yen shifting toward depreciation. Economic conditions remained uncertain.」

「During the first nine months of the current fiscal year, the business environment showed signs of recovery due to the government's decision to postpone the consumption tax increase and other economic policies. However, the outlook for economic activity remained uncertain, with concerns that the slowdown in the Chinese economy, the UK's withdrawal from the EU and the outcome of the US presidential election would affect the domestic economy through unstable foreign exchange and equity markets.」

「Following the UK's withdrawal from the EU at the end of June, the foreign exchange market experienced a sharp appreciation of the yen and the equity market was temporarily unsettled, leaving downside risks to the economy unresolved.」

「Amid persistent uncertainty over the outlook for the global economy, the yen appreciated sharply and share prices fell, leaving conditions uncertain.」