Market Information Friday 16 May 2025

Japan recorded its highest-ever monthly foreign inflows into equities and long-term bonds in April, totaling ¥8.21 trillion ($56.6B), as global investors fled U.S. assets amid tariff shocks and sought diversification. The Nikkei 225 outperformed the S&P 500, supported by Japan’s haven status, falling yields, and institutional demand. While inflows are expected to moderate following trade de-escalation and renewed U.S. confidence, Japanese markets continue to benefit from structural reforms at the Tokyo Stock Exchange, shareholder-friendly policies, and currency tailwinds—strengthening their appeal in a shifting global allocation landscape.

U.S. equities extended gains as the S&P 500 rose for a fourth straight session, lifted by cooling inflation and a drop in Treasury yields. The rally followed a temporary reduction in tariffs by both the U.S. and China, boosting investor sentiment. While the Dow climbed 0.65% and the S&P added 0.41%, the Nasdaq slipped 0.18% as tech stocks lagged.

Asia-Pacific markets were mixed as Japan’s Q1 GDP contracted by 0.2%, worse than expected, amid ongoing trade talks with the U.S. The weaker data dimmed expectations of a Bank of Japan rate hike and put pressure on the yen, which slid toward key resistance levels. While Japan’s Nikkei dipped, broader regional sentiment held, with gains in Australia and South Korea offset by losses in India, Hong Kong, and China, as investors braced for additional economic data from across the region.

The 6M Euribor increased with 3 basis points to 2.16% compared to previous business day. The 10Y Swap decreased with 9 basis points to 2.55% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.