Financial Market Turmoil Caused by the Slowdown in Emerging Asian Economies and the UK's Exit from the EU

「In Japan, resilient domestic-demand-led growth is expected, supported by demand for capital investment and continued substantial wage increases, while inflation is expected to become entrenched and the Bank of Japan is expected to raise its policy rate further. Overseas, AI-related demand and tax cuts and fiscal expansion in the US and Europe are expected to support global economic growth, but uncertainty remains, including the unclear situation in the Middle East, the impact of US tariffs, the slowdown in domestic demand in China and spillover effects on Asian economies.」

「Meanwhile, the effects of U.S. tariff policies are beginning to emerge in some areas, while heightened geopolitical risks, including rising long- and short-term interest rates and higher crude oil prices associated with escalating tensions in Iran, have increased concerns about accelerating inflation and an economic downturn.」

「Continued caution is required regarding heightened uncertainty in the global economy due to the effects of US trade and tariff policies and US-China tensions, as well as geopolitical risks such as the situations in Ukraine and the Middle East. We recognise that developments in the economy and financial markets require even closer attention.」

「During the interim consolidated accounting period, Japan’s economy continued a moderate recovery, supported by improvements in employment and income conditions and corporate earnings. Meanwhile, uncertainty remained high due to geopolitical risks such as the situations in Russia and Ukraine and the Middle East, persistently high resource and raw-material prices, economic stagnation in China and Europe, and continued uncertainty surrounding financial markets, including interest rates and foreign exchange.」

「Regarding the business environment surrounding the Group, Japan’s economy is expected to continue its moderate recovery, supported by investment demand responding to changes in the economic structure, including investment related to decarbonisation. However, we recognise that continued caution is required regarding a slowdown in overseas economies accompanying prolonged monetary tightening in the US and Europe, the effects of weakness in China’s economy, and the situations in Ukraine and the Middle East.」

「During the first nine months of the fiscal year, economic and social activity showed signs of returning to normal as restrictions on activity related to COVID-19 were eased and Japan moved to Category 5 under the Infectious Diseases Control Law. However, the outlook remains uncertain due to sharp global fluctuations in interest rates, foreign exchange and equities and persistently high resource and raw-material prices.」

「During the first six months of the fiscal year, economic and social activity showed signs of returning to normal as restrictions on activity related to COVID-19 were eased and Japan moved to Category 5 under the Infectious Diseases Control Law. However, the outlook remains uncertain due to sharp global fluctuations in interest rates, foreign exchange and equities, persistently high resource and raw-material prices, and economic stagnation in China and Europe.」

「During the first three months of the fiscal year, economic and social activity showed signs of returning to normal as restrictions on activity related to COVID-19 were eased. However, the outlook remains uncertain due to volatility in financial markets amid global monetary tightening, rising prices, persistently high resource and raw-material prices, and the prolonged situation in Ukraine.」

「While the global economy is shifting toward living with COVID-19 and social and economic activity is returning to normal, the outlook remains uncertain due to the prolonged situation in Ukraine and monetary tightening in response to global inflation.」

「Regarding the outlook, uncertainty remains about the effects on Japan’s economy of high domestic prices, tight labour supply and demand, and a shift in monetary policy, as well as the global economic slowdown caused by inflation and monetary tightening in the US and Europe and the lifting of China’s zero-COVID policy. We recognise that conditions requiring continued caution remain in place.」

「In the second half of fiscal 2022, inbound demand following the lifting of restrictions on activity and an expansion in domestic demand are expected to drive the economic recovery. However, uncertainty remains high due to the effects of inflation and monetary tightening in the US and Europe, a slowdown in the global economy and yen depreciation, and we recognise that conditions requiring continued caution remain in place.」

「Meanwhile, uncertainty about the outlook has increased due to higher resource prices resulting from the situation in Ukraine, rising interest rates led by US rates, and the continued depreciation of the yen. We recognize that this situation requires continued attention.」

「Regarding the impact of COVID-19, the rapid spread of the Omicron variant affected companies’ economic activities as they operated with a focus on preventing infections and maintaining business continuity. As the recovery in the economy remains highly uncertain, we recognise that conditions requiring caution will continue through fiscal 2021.」

「During the first six months of the fiscal year, the impact of COVID-19 continued globally, but signs of recovery emerged as Japan repeatedly declared states of emergency and countries implemented measures to prevent infections. We recognise that the outlook remains highly uncertain and that conditions requiring caution continue.」

「During the first three months of the fiscal year, Japan’s economy remained challenging due to the continuing impact of the spread of COVID-19, including the issuance of a state of emergency. We recognise that conditions requiring continued attention to the effects of the global spread of infections remain in place.」

「Regarding the future business environment surrounding the Group, both the global and Japanese economies are expected to move toward recovery, but the pace is expected to be moderate. Uncertainty remains high regarding the impact of COVID-19, including the emergence of variants and vaccine rollout, and we recognise that conditions requiring caution will continue through fiscal 2021.」

「During the first nine months of the fiscal year, economic conditions remained challenging in both the global and Japanese economies due to the spread of COVID-19, although some areas showed signs of recovery. Against the backdrop of a recent resurgence in infections, concerns about an economic downturn have emerged, and the outlook is expected to remain uncertain.」

「In fiscal 2019, both the global and Japanese economies grew moderately, but concerns about an economic slowdown rapidly intensified due to downward pressure related to trade policies in various countries and the global spread of COVID-19 from the beginning of the calendar year.」

「Japan’s economy continues to recover moderately, supported by resilient corporate performance and employment conditions, but the outlook for the global economy remains uncertain due in part to concerns about the effects of trade policies in various countries.」

「Meanwhile, the global economy remains subject to an uncertain outlook, including the effects of trade policies in various countries.」

「Regarding the business environment surrounding the Group, the global economy is expected to remain subject to uncertainty surrounding political conditions and trade policies in various countries. Japan’s economy is expected to be affected by these global conditions and is entering a phase requiring caution, including with respect to economic trends, although capital investment and employment are expected to remain firm.」

「During the first nine months of the fiscal year, concerns about an economic slowdown and political conditions heightened uncertainty in the global economy, but Japan’s economy continued a moderate recovery as robust capital investment and improvements in employment and income conditions continued against a backdrop of improved corporate earnings and other factors.」

「During the first six months of the fiscal year, the global economy remained on an expansionary trend centred on US growth, although uncertainty increased due to turmoil surrounding trade policy and other factors.」

「During the first three months of the fiscal year, the global economy remained firm, particularly in the US and Europe, despite uncertainty stemming from the effects of US trade policy and other factors.」

「During the first nine months of the fiscal year, the global economy continued to recover, supported by expansion in the US economy and recovery in the European economy, despite geopolitical risks in some regions. Japan’s economy also continued its moderate recovery, supported by a pickup in private-sector capital investment against a backdrop of recovering overseas economies and improved corporate earnings.」

「During the first six months of the fiscal year, the global economy continued to expand despite uncertainty, including weakness in some emerging Asian economies and heightened geopolitical risks, supported by solid growth in the US economy and a moderate recovery in the European economy.」

「Although overseas economies, particularly those in the US and Europe, are showing signs of recovery, they remain subject to uncertainty, including developments in US policy and weakness in some emerging Asian economies, and the outlook remains uncertain.」

「The global economy remained sluggish in the first half of the fiscal year due to continued slowing growth in emerging economies and rising political uncertainty in Europe, including Brexit, but entered a moderate expansionary trend for the year as a whole, supported by the recovery of the US economy and signs of a recovery in Asian economies toward the second half of the fiscal year.」

「Private-sector capital investment is expected to increase going forward against a backdrop of steady corporate earnings. However, overseas economies remain highly uncertain due to developments in policy under the new US administration and the outlook for emerging Asian economies, including China, and domestic companies continued to take a cautious stance.」

「However, the outlook for overseas economies remains uncertain due to concerns over economic stagnation in emerging Asian countries, the UK's withdrawal from the EU, and developments in US monetary policy.」

「However, overseas economies remain subject to uncertainty about the outlook, including slowing growth in emerging Asian economies, particularly China, and financial market turmoil stemming from the UK’s withdrawal from the EU.」