Key Takeaways
- Tokyo’s April CPI rose 1.5% year-on-year, falling short of the 1.7% estimate and signaling that inflationary pressures in Japan’s capital are cooling faster than anticipated.
- Meta Platforms (META) warned it may shutter Facebook and Instagram in New Mexico, arguing that a 99% age-verification accuracy requirement for child safety is "technologically unfeasible."
- President Donald Trump signed a bipartisan bill to fund the Department of Homeland Security (DHS), ending a record-breaking 76-day partial shutdown that had stalled paychecks for thousands of federal workers.
- ANZ Group (ANZ) reported a robust A$3.78 billion half-year cash profit, while Coles Group (COL) flagged a 3.9% drop in liquor sales amid heightened geopolitical uncertainty.
- Qantas (QAN) announced it will extend its 5 percentage point capacity reduction through September, citing sustained high fuel costs driven by Middle East tensions.
Macroeconomic Trends: Tokyo Inflation Cools
Tokyo’s consumer price index (CPI) rose 1.5% year-on-year in April, a figure that landed below the 1.7% market estimate. While the headline figure is up from 1.4% in March, the core-core measure—which excludes fresh food and energy—rose 1.9%, missing the 2.2% forecast and dropping from a previous 2.3%.
This cooling trend in the capital is a critical leading indicator for nationwide inflation and may complicate the Bank of Japan's path toward further interest rate hikes. Meanwhile, in the Oceania region, Australia’s S&P Global Manufacturing PMI for April was finalized at 51.3, up slightly from 51.0, while New Zealand building consents fell 1.3% following a prior 2.7% rise.
Corporate Spotlight: Meta’s Legal Stand and ANZ’s Profit Surge
Meta Platforms (META) has escalated its legal battle with New Mexico, threatening to withdraw services like Facebook and Instagram from the state. The company argues that proposed child safety mandates, specifically a 99% age-verification accuracy requirement, are impossible to meet and would necessitate building entirely separate applications for the region.
In the banking sector, ANZ Group Holdings (ANZ) surpassed analyst expectations with a A$3.78 billion half-year cash profit. New CEO Nuno Matos attributed the performance to the "ANZ 2030" turnaround strategy, which focuses on simplifying the bank's operations and integrating Suncorp Bank, a move expected to be completed by June 2027.
Coles Group (COL) posted quarterly sales revenue of A$10.7 billion, with supermarket revenue growing 4.0%. However, the retailer warned that consumer sentiment for liquor has weakened significantly due to geopolitical uncertainty in the Middle East, leading to a 3.9% decline in liquor sales revenue to A$781 million.
Geopolitics and Trade: DHS Funding and US-China Relations
President Donald Trump signed a bill on Thursday to fund most of the Department of Homeland Security, ending the longest shutdown in the agency's history. The agreement funds the Secret Service, TSA, and Coast Guard through September but excludes ICE and Border Patrol, which Republicans intend to fund through a separate budget reconciliation process.
On the trade front, USTR Jamieson Greer held "candid" talks with China’s Vice Premier He Lifeng, emphasizing the need for greater agricultural access for U.S. producers. The two nations proposed establishing a US–China Board of Trade to manage the exchange of non-sensitive goods, even as the U.S. maintains substantial tariffs on advanced manufacturing sectors.
Energy and Aviation: Fuel Costs Force Capacity Cuts
US Crude futures rose to $105.41 per barrel after reaching an intraday peak of $110.93, as markets remain on edge over supply disruptions in the Middle East. The sustained price surge has directly impacted the aviation sector, with Qantas (QAN) and Jetstar extending schedule changes into the first quarter of FY27.
Qantas (QAN) will maintain a 5% capacity reduction through September and cut international capacity by an additional 2 percentage points. The carrier is also suspending its Sydney–Bengaluru service from August to October, though it will continue to redeploy aircraft to add 2,000 weekly seats on routes between Australia and Europe.
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.