Japan and South Korea "have reached the conclusion that they will not extend the term of yen-won swaps between their central banks worth $3 billion, which will expire July 3"
- the Finance Ministry
An index that measures corporate service prices inched up by a seasonally-adjusted 0.3% in May following a –0.3% reading in the month earlier, according to the Bank of Japan on Tuesday. The headline figure overshot analysts' expectations, which called for a flat reading. On a monthly basis prices rose as much as 0.1% after falling a revised 0.2% in April. Among the survey components, prices increased for communications, advertising and real estate.
Furthermore, Japan and South Korea agreed to halt part of their currency swap contract in July as scheduled, cutting the overall size to $10 billion from $13 billion, the Finance Ministry said Monday. Meanwhile, the European Union and Japan began the second round of free-trade talks Monday in Tokyo, with both parties seeking to negotiate elimination of tariffs and nontariff barriers to boost trade and growth. The two countries are expected to hold sector-by-sector discussion in this round through July 3, covering goods and services trade, investment and intellectual property. Japan plans to increase auto and home electronics overseas sales in the EU by eliminating EU-imposed tariffs, whereas the union hopes to gain greater access to public-sector projects in Japan.
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