TOKYO (Reuters) -When 22-year-old Hinako Mori moved to Tokyo last year, she chose to work part-time at Don Quijote, a major discount retailer, for one main reason – it doesn’t care what colour her hair is.
Sporting ash blonde locks with light and dark blue streaks when interviewed, Mori likes to dye her hair different colours every six weeks.
It was very different when she worked at a major Japanese convenience store chain that mandated black or dark brown hair.
“One time, I dared to dye my hair blonde. But the next day, I was told to either wear a wig or use spray-on colour,” said Mori. “It was very stressful.”
RETAILERS RELAX RULES
Squeezed by Japan’s tight labour market, more companies are this year following in the footsteps of Don Quijote, a Pan Pacific International group company. It relaxed its rules around hair and nail polish three years ago and says nearly a quarter of its employees now have brightly coloured hair. When brown is included, 55% of its employees have non-black hair.
Drugstore chain Fuji Yakuhin, for example, has done away with a plethora of rules for non-pharmacist employees. It now allows any hair colour, nail art, heavy makeup, as well as all kinds of rings, whereas previously only wedding rings were permitted. Similarly, the operator of Tokyu Store supermarkets has dialled back restrictions on hair colours, hair styles, accessories, nail polish and piercings.
Japan Inc has been gradually relaxing its dress codes over the past two decades. The catalyst was a 2005 Ministry of Environment “Cool Biz” campaign that encouraged the ditching of jackets and ties to cut down on air conditioning costs during summer.
Since then, summer dress codes have become more casual, uniforms are no longer mandated for many department store employees and white gloves for taxi drivers were made optional.
The newest changes around hair colour, nail polish and accessories are predominantly taking place at smaller companies facing more acute labour shortages than bigger firms and don’t have as much leeway to offer competitive wages.
But some big listed firms have relaxed dress codes this year. Japan Airlines last week joined subway operator Tokyo Metro and domestic budget carrier Skymark Airlines in allowing staff to wear sneakers to work.
LABOUR CRUNCH PRESSURE
Japan, a rapidly ageing country with limited immigration, has seen its working-age population tumble 16% since a peak in 1995, according to OECD data. That’s set off fierce competition for staff.
Two-thirds of Japanese firms have said the labour shortage is having a serious business impact, a Reuters survey shows. It was the leading cause of Japanese bankruptcies in April-September, with the number of failures hitting their highest level in 12 years for a first-half period, according to Tokyo Shoko Research.
That’s given young people more power, at least with regard to part-time work.
Two-thirds of students believe they should be able to choose their appearance when working part-time, according to an April survey by job information and recruitment firm Mynavi. One-third said they had withdrawn job applications because of dress codes at potential employers.
“Students aren’t just looking for work experience or to earn money; they seem to be seeking something more in their jobs – a sense of freedom or comfort,” said Shota Miyamoto, a researcher at Mynavi. But he added they did not expect the same of full-time work.
While Japan may be loosening up, some aspects of personal appearance that have become common in the West, like multiple or facial piercings, are still a bridge too far for many companies. Workers with tattoos - art traditionally associated with the yakuza in Japan – are generally asked to conceal them so as not to intimidate customers.
The latest changes have also yet to permeate many traditional big-name Japanese companies. Sumitomo Mitsui Banking Corp, for example, says it doesn’t have policies about hair or nail polish, but it’s generally understood among employees that their personal appearance shouldn’t create waves.
(Reporting by Satoshi Sugiyama; Editing by Edwina Gibbs)
(Bloomberg) — Asian markets looked set for a cautious start as investors braced for a barrage of US economic data amid lingering uncertainty over the Federal Reserve’s policy path. Bitcoin erased its gains for the year.
Equity-index futures pointed to modest declines in Hong Kong and a slight gain for Japan, while Australian shares opened lower. The yen held steady ahead of third-quarter growth data. US shares closed little changed on Friday as investors stayed on the sidelines ahead of economic reports delayed by the government shutdown.
After weeks of limited data, investors will finally get fresh signals on the health of the US economy as agencies begin releasing key indicators, including the September employment figures on Thursday. Traders are also navigating a mix of risks — from stretched valuations in AI-related stocks to renewed strains in relations between China and Japan. Risk appetite seemed to be fading, with Bitcoin sliding below $94,000 and wiping out its year-to-date advance.
“November so far has seen a pretty wobbly ride for shares,” Shane Oliver, chief economist and head of investment strategy at AMP Ltd., wrote in a note to clients. “Share markets remain at risk of a correction given stretched valuations, risks around US tariffs and the softening US jobs market.”
A slew of Fed officials have expressed skepticism over the need for a cut in December, or outright opposed one, less than a month after Chair Jerome Powell warned that a December cut is far from a “foregone conclusion.”
Last week, futures traders pushed the odds of a quarter-point rate cut in December below 50% as some Fed officials indicated that such a move is far from a sure thing. That near-term uncertainty has driven up a gauge of expected bond-market volatility, which had been hovering around a four-year low.
“While there will be questions about data quality, market participants will react to new information” and weigh the dollar, Commonwealth Bank of Australia strategists led by Joseph Capurso wrote in a note to clients. “We expect the non-farm payrolls report for September to underperform expectations of a 50,000 increase.”
Meanwhile, the yen was steady in early trading ahead of Japanese third quarter growth data, which may provide justification for Prime Minister Sanae Takaichi compiling a hefty stimulus package. Japan’s real gross domestic product is forecast to contract by 2.4% in the three months through September on an annualized basis, the first decline in six quarters, according to economists’ estimates.
The potential for stimulus and a reduction in rate hike expectations following Takaichi’s appointment has placed fresh pressure on the yen. The currency slid to its weakest in nine months last week, leading to official warnings that moves have become one-sided. Any further weakening may increase angst over possible government intervention with the currency near levels that previously drew authorities into the market.
“Technically, USD/JPY is approaching levels where Japanese currency officials are expected to begin to verbally intervene more aggressively,” Tony Sycamore, a strategist at IG Markets, wrote in a note. “However, actual physical intervention is unlikely until the exchange rate reaches around 160 or higher, given the dovish stance of the new Japanese Prime Minister.”
In commodities, oil started the week a touch lower while gold edged up. The precious metal has jumped more than 50% this year, putting it on course for its best annual gain since 1979.
Attention is also on the cryptocurrencies market. Just a little more than a month after reaching an all-time high, Bitcoin has erased the more than 30% gain registered since the start of the year as the exuberance over the pro-crypto stance of the Trump administration fades.
The dominant cryptocurrency fell below $93,714 on Sunday, pushing the price beneath the closing level reached at the end of last year, when financial markets were rallying following President Donald Trump’s election victory. Bitcoin soared to a record $126,251 on Oct. 6, only to begin tumbling four days later after unexpected comments on tariffs by Trump sent markets into a tailspin worldwide.
Corporate News:
Samsung Group and SK Group were among four of South Korea’s biggest companies that pledged to invest about $550 billion in the country after meeting with President Lee Jae Myung. A White House national security memo claimed Alibaba Group Holding Ltd. provided the Chinese military with technology support against targets in the US, the Financial Times reported. Boeing Co. said it will ensure its factories are ready to absorb a higher rate of aircraft output before lifting the tempo again next year. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 8:26 a.m. Tokyo time Hang Seng futures fell 0.3% Australia’s S&P/ASX 200 fell 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1622 The Japanese yen was little changed at 154.54 per dollar The offshore yuan was little changed at 7.0978 per dollar The Australian dollar was little changed at $0.6534 Cryptocurrencies
Bitcoin rose 0.9% to $94,271.23 Ether rose 0.7% to $3,094.2 Bonds
Australia’s 10-year yield advanced three basis points to 4.47% Commodities
West Texas Intermediate crude fell 1% to $59.48 a barrel Spot gold rose 0.5% to $4,106.23 an ounce This story was produced with the assistance of Bloomberg Automation.
Scotland are still one game from their first World Cup since 1998 despite falling short of a remarkable comeback in a 3-2 defeat in Greece after Belarus did them a favour against Denmark.
Daniel Oyefusi covers the Cleveland Browns for ESPN. Prior to ESPN, he covered the Miami Dolphins for the Miami Herald, as well as the Baltimore Ravens for The Baltimore Sun.
In March of 2024 the DESI collaboration dropped a bombshell on the cosmological community: slim but significant evidence that dark energy might be getting weaker with time. This was a stunning result delivered after years of painstaking…
Artificial intelligence and emerging markets are set to define the next decade, according to Goldman Sachs. The Goldman Sachs 10-year global outlook, released on Wednesday, sets out the investment bank’s expectations leading up to 2035. The longer-look report is designed to complement forecasts from the firm’s economists. “While cyclical forces will periodically influence markets, the drivers that we expect to dominate over this horizon are structural: trend nominal growth, profitability and margin behavior, starting valuations and the policy backdrop,” Goldman Sachs analysts noted. They used a common framework across assessed regions, adapting it based on local specifics. The model estimated total returns as the sum of earnings growth, valuation changes and dividend yield, using assumptions tailored to each market’s drivers and index makeup. AI has been the defining trend of the year, and emerging markets have been hot amid volatility in supply chains, tariffs, and currency, leading investors to diversify their portfolios. Goldman Sachs analysts expect those trends to continue. “Historically, dollar weakness has coincided with non-US outperformance, adding an extra layer of opportunity for globally diversified portfolios,” they added. Here’s a look at the report’s key points in more detail: Equities look robust in the long-term, despite AI bubble fears Analysts at Goldman Sachs are comfortable with the current track of global equities, despite the are-we-aren’t-we chatter surrounding an AI bubble . “We expect global equities to deliver solid long-term returns despite elevated valuations,” they wrote. The investment bank forecasts global equities to grow 7.7% per annum, which “sits close to the historical median,” the analysts noted. While valuations start at around 19-times forward earnings, they said, “we assume they will be slightly lower over the decade.” Buoyancy is supported by nominal growth, profitability, and shareholder distributions, per the note. A bubble is typically defined by a disconnection between valuations and fundamentals, a dynamic many fund managers and analysts believe is emerging within AI-related stocks. On the flip side, a strong earnings season has quelled some concerns and caused a further rally on tech stocks . “Earnings growth remains the primary engine of performance. We expect global earnings — including buybacks — to compound at roughly 6% annually. Dividends provide the rest of the return, while we expect valuations to ease modestly from current highs,” the Goldman Sachs analysts added. Emerging markets to outperform the U.S. Emerging markets are expected to hold attention over the next decade, cementing the sector as a key driver of returns as they outperform other regions including the U.S. The investment bank predicts emerging markets will advance 10.9% due to strong earnings per share growth in China and India. Excluding Japan, Asia tails closely, with an expected 10.3% rise due to earnings per share and dividend yield. Japan, whose Nikkei 225 index is up 27.4 year-to-date, will see expected returns of 8.2%, the analysts added. Elsewhere, earnings and shareholder returns could boost Europe 7.1%. The U.S. will see the smallest expected gains of 6.5%, which Goldman Sachs analysts said is driven “entirely by earnings and modest dividends.” “Diversify beyond the US, with a tilt towards Emerging Markets. We expect higher nominal GDP growth and structural reforms to favour EM, while AI’s long-term benefits should be broad-based rather than confined to US Technology,” they added. Benefits of AI to surpass Silicon Valley Investors are split on AI’s impact on emerging markets but Goldman Sachs analysts expect its benefits — which McKinsey says will eventually be worth $4.4 trillion — to be widespread. Korea, Taiwan, Japan, and China are investing heavily in AI-driven capex and adoption, however, there are “significant differences” between each country, the note said. India is likely to see the most growth, at 13% compound annual growth rate (CAGR) driven by strong economic fundamentals and demographic tailwinds. Taiwan and Korea, both 10% earnings per share CAGR, “will likely see earnings growth bolstered by AI capex, shareholder reform (mainly Korea), and strategic sectors including defence, nuclear, and shipbuilding (Korea),” Goldman Sachs analysts wrote. “China has the capacity to deliver 12% growth over the next three years, driven by AI capex/adoption, rising external market share (the going-global theme), and anti-involution (reduction of excess capacity and corresponding margin pressure),” they said.
