{"id":65644,"date":"2026-07-29T23:38:17","date_gmt":"2026-07-30T03:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/microsofts-130b-ai-expansion-leads-global-market-moves-japan-eyes-food-tax-cut\/65644\/"},"modified":"2026-07-29T23:38:17","modified_gmt":"2026-07-30T03:38:17","slug":"microsofts-130b-ai-expansion-leads-global-market-moves-japan-eyes-food-tax-cut","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/microsofts-130b-ai-expansion-leads-global-market-moves-japan-eyes-food-tax-cut\/65644\/","title":{"rendered":"Microsoft\u2019s $130B AI Expansion Leads Global Market Moves; Japan Eyes Food Tax Cut"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> has committed to <strong>$130 billion<\/strong> in data center leases, a massive <strong>two-thirds increase<\/strong> in commitments since March, to fuel its AI competition.<\/li>\n<li><strong>Japan PM Sanae Takaichi<\/strong> is moving to slash the food sales tax from <strong>8% to 1%<\/strong> for a two-year period, aiming to curb the impact of persistent inflation on households.<\/li>\n<li><strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> faced multiple price target reductions from <strong>Scotiabank<\/strong> and <strong>Piper Sandler<\/strong> following a sharp <strong>91% drop<\/strong> in quarterly free cash flow due to heavy AI spending.<\/li>\n<li><strong>Toyota Tsusho (<a href=\"\/stock\/8015\">8015<\/a>)<\/strong> and JOGMEC are advancing a strategic heavy rare earth project in <strong>Namibia<\/strong> with a new <strong>C$47.7 million<\/strong> investment to secure supply chains outside of China.<\/li>\n<li><strong>Thai stocks<\/strong> hit their lowest levels since early July, with the <strong>SET index<\/strong> sliding <strong>1.8%<\/strong> amid a broader regional sell-off in technology equities.<\/li>\n<\/ul>\n<hr>\n<h2>Big Tech\u2019s AI Spending War Intensifies<\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) has signaled a massive escalation in the AI infrastructure race, signing <strong>$130 billion<\/strong> in data center leases. This surge represents a significant acceleration in the company&#39;s capital commitments as it seeks to provide the computing power required by partners like OpenAI. The move comes as <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> brought <strong>31 new data centers<\/strong> online in the most recent quarter alone, bringing its total to <strong>88 for the fiscal year<\/strong>.<\/p>\n<p>In contrast, Meta Platforms (<a href=\"\/stock\/META\">META<\/a>) is seeing increased scrutiny over its &quot;spending binge.&quot; Analysts at <strong>Scotiabank<\/strong> slashed their price target for the social media giant to <strong>$600 from $700<\/strong>, while <strong>Piper Sandler<\/strong> lowered its target to <strong>$785<\/strong>. Investors remain wary after Meta reported that free cash flow plummeted to <strong>$784 million<\/strong> from $8.5 billion a year prior, a direct result of aggressive investments in AI hardware and talent.<\/p>\n<h2>Japan Proposes Drastic Food Tax Cut<\/h2>\n<p>Japanese Prime Minister <strong>Sanae Takaichi<\/strong> has instructed Liberal Democratic Party (LDP) executives to proceed with a plan to lower the consumption tax on food to <strong>1% from 8%<\/strong>. The temporary measure, expected to last <strong>two years<\/strong>, is designed as a &quot;stopgap&quot; until a more permanent benefit system for low-income households is established in 2029.<\/p>\n<p>The proposal has sparked intense debate in Tokyo regarding fiscal sustainability. Critics point out that the cut could cost the government over <strong>4 trillion yen ($31.6 billion)<\/strong> annually in lost revenue. However, Takaichi is pushing for the bill to be submitted promptly to the Diet, citing the urgent need to address the <strong>71% disapproval rating<\/strong> regarding the government&#39;s handling of rising living costs.<\/p>\n<h2>Strategic Shifts in Critical Minerals and Regional Markets<\/h2>\n<p>Toyota Tsusho (<a href=\"\/stock\/8015\">8015<\/a>) and the Japan Organization for Metals and Energy Security (<strong>JOGMEC<\/strong>) have established a special purpose company for the <strong>Lofdal heavy rare earth project<\/strong> in Namibia. JOGMEC will invest up to <strong>47.668 million Canadian dollars<\/strong> in the venture. The project is strategically vital for Japan&#39;s automotive sector, as it focuses on <strong>dysprosium and terbium<\/strong>, critical components for EV motors currently dominated by Chinese supply chains.<\/p>\n<p>Meanwhile, Asian markets faced significant headwinds on Thursday. The Thai <strong>SET index<\/strong> dropped <strong>1.8% to 1,595.17 points<\/strong>, marking its lowest close since July 9. The decline was fueled by a regional retreat from technology stocks and uncertainty surrounding the Federal Reserve\u2019s interest rate path, which has pushed long-dated U.S. Treasury yields to their highest levels since 2007.<\/p>\n<h2>Geopolitical Tensions Escalate in Ukraine<\/h2>\n<p>A massive Russian missile and drone barrage struck multiple Ukrainian cities overnight, resulting in significant civilian casualties. In <strong>Kryvyi Rih<\/strong>, an Iskander-M ballistic missile destroyed a residential home, killing <strong>six people<\/strong>, including children, and wounding eight others. Simultaneously, the western city of <strong>Lviv<\/strong> reported at least <strong>six injuries<\/strong> and fires in residential districts following air strikes, forcing the city to reroute public transport as rescue operations continue.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Microsoft (MSFT) has committed to $130 billion in data center leases, a massive two-thirds increase in commitments since 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