Daily Briefing · 2026-10-31

As selling spread to semiconductor-related stocks, Intel shares recorded their steepest decline in 52 years. Cryptocurrency exchange Binance suffered damage of historic scale in the digital asset sector following a sophisticated cyberattack. Meanwhile, Kioxia indicated that net profit for the April-December 2026 period is expected to surge 24-fold year-on-year, driven by expanding demand for memory semiconductors. Regarding the situation in the Middle East, a tanker caught fire in the Strait of Hormuz. Negotiations between Iran and the United States, mediated by Qatar, are underway. At a foreign ministers' meeting between Japan and Turkey, the two countries agreed that restoring navigational safety in areas such as the Strait of Hormuz is an urgent priority. On the security front, the Trump administration approved an arms sale to Ukraine worth approximately $2.1 billion. In Europe, eurozone GDP growth for the July-September period came in at plus 0.4%, marking a slowdown in growth for the first time in two quarters. Higher fuel costs stemming from the situation in the Middle East appear to have weighed on the economy. On the trade front, German Chancellor Merz indicated plans to discuss preferential treatment for EU-made EVs at an EU leaders' summit. Chinese President Xi Jinping called for cooperation toward resolving trade friction with the EU. A plan was also proposed for Canada to become an associate member of the EU. In resources, Japan's crude oil imports fell for the first time in 4 months, affected by the pipeline attack in Saudi Arabia. In domestic corporate news, Toyota indicated plans to begin commercial operation of driverless taxis in 2027. Tokyo Metro indicated plans to raise fares in March 2029. Regarding the high-speed rail accident in Spain, it was determined to be a man-made disaster caused by a rear-end collision resulting from trouble with a preceding train. In monetary policy, the Bank of Japan kept its policy interest rate unchanged at 1.25%.