Global Economic Shifts: Japan Struggles, UK Slows, Taiwan Surges:
The global economic landscape is witnessing diverging developments across Asia and Europe,
reflecting the challenges of monetary policy, labor market weaknesses, and the rise of advanced tech companies.

In Japan, the central bank governor pointed to limited options for interest rate cuts despite slowing inflation,
Sending the yen lower.
Meanwhile, the United Kingdom recorded its weakest labor market performance
since the 2020 pandemic amid wage growth deceleration.
In contrast, Taiwan offered a more optimistic picture,
Despite a month-on-month dip, TSMC reported strong annual revenue growth driven by rising chip demand.

Contents
Bank of Japan Governor
UK Labor Market Deterioration
Taiwan Semiconductor Highlights

Bank of Japan Governor: Limited Room for Rate Cuts, Yen Declines

Bank of Japan Governor Kazuo Ueda told the Japanese parliament today
The central bank’s ability to support the economy through interest rate cuts is now limited.
Especially if economic activity or prices face significant downside pressures.

He noted that the short-term interest rate remains at 0.5%, while core inflation remains below the 2% target.
Ueda added that the bank will keep real interest rates in negative territory
to push inflation toward the 2% target and maintain stability there.

He emphasized that any move to raise rates would require
strong confidence that core inflation is approaching or within the target range.

The yen weakened following his comments, with the dollar rising from around 144.60 yen to just below 145,
signaling expectations that Japan’s accommodative monetary policy will remain in place.

UK Labor Market Deteriorates: Sharpest Employment Drop Since 2020

Data released Tuesday by the UK’s Office for National Statistics revealed a steep decline in employment during May
The most significant monthly drop since the start of the COVID-19 pandemic in May 2020,
highlighting growing pressures in the British labor market.

The number of payroll employees fell by 109,000, significantly worse than the expected 20,000 decline.

Wage growth, excluding bonuses, slowed to 5.2%, the lowest in seven months,
falling short of expectations at 5.3%.
Private sector wage growth, a key metric the Bank of England monitored, dropped from 5.5% to 5.1%.

The unemployment rate rose to 4.6%, the highest since summer 2021.

Taiwan’s TSMC Posts Nearly 40% YoY Revenue Surge in May Despite Monthly Declines.

Taiwan Semiconductor Manufacturing Company (TSMC) reported robust annual revenue growth in May,
with a 39.6% year-on-year increase.
This reflects continued strong demand for chips despite a slight monthly decline.

According to the company’s monthly report released Tuesday,
TSMC recorded net revenues of 320.5 billion New Taiwan dollars (approximately USD 10.7 billion) in May,
representing an 8.3% drop compared to April.

The company noted that total revenue for the first five months of 2025 reached approximately NT$1.5 trillion,
marking a 42.6% increase from the same period last year.

This performance is attributed to sustained demand for semiconductors used in AI,
communications, and advanced electronics,
further cementing TSMC’s role as a critical supplier in global supply chains.

Global Economic Shifts: Japan Struggles, UK Slows, Taiwan Surges

Global Economic Shifts: Japan Struggles, UK Slows, Taiwan Surges

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