Key Takeaways
- Japanese Prime Minister Sanae Takaichi is advocating for wage-driven inflation to achieve the Bank of Japan's (BOJ) 2% price target, criticizing the current food-based inflation as risky for the economy and warning against a slide back into deflation.
- The International Energy Agency (IEA) forecasts a significant increase of 300 billion cubic meters in global LNG export capacity by 2030, primarily from the United States and Qatar, while also reviving a scenario where oil demand sees no peak before 2050.
- The Hong Kong IPO market is projected to sustain its "hot streak" into 2026, driven by strong demand from Chinese companies seeking international capital, according to CICC.
- In corporate news, Japan's Marubeni ((/stock/8002)) is reportedly planning to exit its trading operations.
Japanese Prime Minister Sanae Takaichi has intensified her calls for the Bank of Japan (BOJ) to collaborate on achieving a sustainable 2% inflation target, emphasizing that this must be driven by wage increases rather than current cost-push factors like rising food prices. Takaichi described the current inflation as "largely food-based" and "risky for the economy," explicitly stating that Japan has not yet fully emerged from deflation. She warned that "wrong policies" could trigger a return to deflation, which would negatively impact consumption, wage growth, and capital expenditure.
The Prime Minister expressed her hope that the BOJ would guide monetary policy appropriately to achieve price stability accompanied by wage gains, stressing the government's ultimate responsibility for economic policy. Takaichi's administration is preparing an economic package to address the cost-of-living squeeze, which has seen real wages decline for months and rice prices soar to near-record highs. This package is expected to include subsidies for electricity and gas, and encourage small and medium-sized businesses to raise wages and increase capital investment.
On the global energy front, the International Energy Agency (IEA) has released updated forecasts, predicting a substantial increase in Liquefied Natural Gas (LNG) output. Approximately 300 billion cubic meters per year of new LNG export capacity is expected to be sanctioned and added by 2030, primarily from projects in the United States and Qatar. This expansion is anticipated to ease market tightness and potentially exert downward pressure on prices, offering relief to importers. The IEA also revealed a significant shift in its outlook, reintroducing a scenario where global oil demand does not peak before 2050 under current policies, a departure from previous assessments. However, the agency concurrently warned that all current pathways indicate global warming will exceed the 1.5°C target, highlighting the urgent need for bolder action and increased investment in clean energy technologies.
In corporate developments, Japanese trading house Marubeni ((/stock/8002)) is reportedly planning to divest from its trading business, according to the Financial Times. This move could signal a strategic realignment for the conglomerate.
Meanwhile, in Asia, the Hong Kong Initial Public Offering (IPO) market is poised for continued robust activity. CICC projects that the market's "hot streak" will extend into 2026, particularly for sectors aligned with national priorities such as robotics and advanced manufacturing, driven by strong interest from Chinese companies seeking international capital. This positive outlook follows a strong performance in 2025, which saw the market exceed expectations and benefit from both industrial trends and fundamental improvements. Adding to the region's technological advancements, a Chinese team has reported the first successful recovery of rare earth minerals from a living plant, a development that could have implications for sustainable resource extraction.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.