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By Leika Kihara and Makiko Yamazaki TOKYO (Reuters) -The appointment of Satsuki Katayama as Japan's next finance minister on Tuesday could give markets cause to pause before pushing the yen too low, but it might also help the country's new prime minister, Sanae Takaichi, find fresh ways to fund bold economic stimulus plans, analysts said. Takaichi's appointment of Katayama as her finance minister – overseeing currency policy, debt management and the budget – means Japan now has its first female premier as well as its first woman in the top financial job. In an interview with Reuters in March, Katayama, a 66-year-old veteran upper house lawmaker and former finance ministry bureaucrat, said Japan's economic fundamentals suggest the yen's real value is closer to 120-130 per dollar. Those comments were made when the yen had fallen to around 150 against the dollar on market expectations that the Bank of Japan would go slow on monetary tightening. The dollar briefly fell to around 150.50 yen on a local media report that Katayama will get the job, before recouped losses to climb above 151 yen. "Given her past remarks, it seems Katayama favours reversing a weak yen. Markets may have seen that as similar to the views of U.S. Treasury Secretary Scott Bessent," said Akira Moroga, chief market strategist at Aozora Bank. Speaking to reporters after her appointment, Katayama said it was desirable for foreign exchange rates to move stably reflecting fundamentals. She declined to comment on BOJ policy. Takaichi was voted in as Japan's first female prime minister on Tuesday, breaking the glass ceiling for women in a country where men still wield most power – before breaking some more glass with her appointment of Katayama. The yen and bond yields fell after the parliamentary vote on market expectations that Takaichi, a proponent of expansionary fiscal and monetary policy, would deliver big spending and push back against an early BOJ rate hike. KATAYAMA AN OUTSPOKEN AND DECISIVE INSIDER A former finance ministry bureaucrat well-versed in fiscal affairs, Katayama has a knack for currency diplomacy, and has befriended former and incumbent executives alike at the ministry overseeing exchange-rate policy. She is known for being outspoken and for her punchy decision-making, which contrasts with incumbent finance minister Katsunobu Kato, who rarely goes off script and keeps a low profile. In the March interview, Katayama had said U.S. President Donald Trump's administration did not want excessive yen weakness versus the dollar. Indeed, Bessent said last week the yen would find its own level if the central bank follows "proper monetary policy" in his latest swipe at the slow pace of BOJ rate hikes. The appointment of Katayama comes at a time of rising living costs, blamed in part on higher import prices caused by a weak yen. Those factors have hurt households and the ruling party's approval ratings. As a former bureaucrat, Katayama knows well the inner workings of the finance ministry's budget drafting. While her background at the finance ministry could prod her to call for fiscal discipline, some analysts say she could use her expertise to help Takaichi find ways to fund her bold spending plans. "She'll know how to find sources of revenue if Takaichi wants to expand fiscal spending," said Hiroyuki Machida, director of Japan FX and commodities sales at ANZ. "Personally, I think this appointment will accelerate 'Takaichi-trade'." Katayama said she would focus on revitalising the economy with expansionary fiscal policy. She will also be heading the ministry that oversees official communication with the central bank, although little is known about her stance on BOJ rate hikes. Economic and political reality could prevail as Japan faces challenges different from a decade ago, when former premier Shinzo Abe deployed the "Abenomics" mix of fiscal and monetary stimulus that Takaichi still praises. With inflation exceeding its 2% target, the BOJ's exit last year from a decade-long stimulus and its two rate hikes since then came amid political pressure to combat yen falls. "Japan's current problem is not deflation and a strong yen, but inflation and a weak yen. There's also pressure from Washington for the BOJ to raise interest rates," said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute. "It would be hard for Takaichi's administration to exert strong pressure on the BOJ to delay rate hikes," he said, predicting the chance of a rate increase in December. Markets will focus on Katayama's views on whether the BOJ should keep raising interest rates, which could increase Japan's debt-servicing costs but help keep sharp yen falls in check. "Katayama is a former finance minister bureaucrat and so well informed on the ministry's affairs," said Eiji Douke, chief fixed income strategist of SBI Securities. "She's likely neutral on fiscal and monetary policy." (Reporting by Leika Kihara and Makiko Yamazaki; Additional reporting by Yoshifumi Takemoto and Takahiko Wada; Editing by Sam Holmes and Hugh Lawson)

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By Francesco Guarascio, Phuong Nguyen and Daniel Leussink HANOI/TOKYO (Reuters) -The Japanese government and some of the nation's top manufacturers have warned Vietnam that a planned ban on petrol-powered motorbikes in Hanoi could spark job losses and disrupt a $4.6 billion market that is dominated by Honda, according to documents reviewed by Reuters and seven people familiar with the matter. In July, Vietnamese Prime Minister Pham Minh Chinh issued a directive prohibiting petrol motorbikes from entering the centre of the capital from the middle of 2026, as the country seeks to reduce high levels of air pollution. Broader restrictions are due in 2028 and bans are expected to spread to other parts of the country. In response, the Japanese embassy in Hanoi sent a letter to Vietnamese authorities saying a sudden ban could "affect employment in supporting industries" such as motorcycle dealers and parts suppliers, according to a statement from the embassy summarising its letter. The embassy declined to share the full contents of the letter, which is being reported for the first time.  The embassy also urged Vietnamese authorities to consider an "appropriate roadmap" for electrification that would include a preparation period and staged implementation of regulations. The embassy declined to say when the letter was sent, although one Japanese government official said it was relayed in September.  Vietnam's two-wheeler market is one of the world's largest – worth an estimated $4.6 billion this year, according to market research firm Mordor Intelligence – with the number of registered motorbikes last year approaching 80% of the country's population of 100 million, one of the highest ownership rates globally. MANUFACTURERS WARN OF POTENTIAL BANKRUPTCIES The main trade group for foreign motorcycle makers in Vietnam, which is led by Honda and includes Yamaha and Suzuki, sent its own letter to the government in July warning that the ban could result in "production interruptions and the risk of bankruptcy" for companies in the supply chain, according to a copy of the letter reviewed by Reuters. The manufacturers said the ban could have "spillover effects" on hundreds of thousands of workers and cited potential disruptions for nearly 2,000 dealers and some 200 component suppliers.  They urged the implementation of a transitional period "with a minimum preparation time of two to three years" to allow time for them to adjust production lines while a network of charging stations and safety standards are expanded.  Vietnamese officials have thus far declined to act on the requests from the Japanese government and manufacturers, according to three people familiar with the discussions. These people, like others who spoke to Reuters, declined to be identified because of the sensitivity of the issue.  Vietnam's government did not respond to a request for comment. The government has said the ban is necessary to tackle high air pollution levels in Hanoi. Authorities in Ho Chi Minh City, Vietnam's largest metropolis, have also signalled plans to restrict petrol-powered vehicles. Addressing concerns about the switch to electric power, Prime Minister Chinh told Japanese executives in August that reducing emissions is a global issue requiring joint efforts "to choose the most optimal solution with a suitable roadmap," according to the government's online portal.  IN VIETNAM, HONDA IS SYNONYMOUS WITH MOTORBIKES Honda, which controls 80% of the two-wheeler market in Vietnam with 2.6 million vehicles sold last year, has led the charge to have authorities revise the directive, according to three of the people, all of whom attended or were briefed about meetings with the Vietnamese government and other officials in recent months. In private, one Honda representative raised the possibility that the company could consider scaling back its production in Vietnam in response, according to one of the people.  Honda said it was closely monitoring the situation, but had no plan to close factories. The Japanese manufacturer has four factories in Vietnam, where it is so dominant that its brand name has become a shorthand for "motorbike" in Vietnamese.  Almost all of the motorbikes it sells in Vietnam and elsewhere are powered by petrol. But it does also offer the CUV e: and ICON e: battery-powered models in the country. Honda's sales in Vietnam tumbled by almost 22% in August from July, the month the ban was unveiled, before recovering slightly in September. The company recorded double-digit sales declines from a year earlier in August and September. As Honda's automotive business has been squeezed by heightened competition due to a global shift to electric cars, it has become more reliant on its motorcycle business as a profit driver. VINFAST SALES ARE RISING – FAST Meanwhile, sales of electric motorbikes and e-bikes made by Nasdaq-listed Vietnamese firm VinFast rose 55% to nearly 70,000 in the second quarter of 2025 from the first quarter. They are expected to surge following the ban, according to a consumer survey conducted in September by market research firm Asia Plus. The proposed environmental measures have also had an impact on Vietnam's petrol car sales, which fell 18% in September from a year earlier for members of VAMA, the country's largest auto industry association, which includes several Japanese brands. Last month, VAMA said it did not expect a direct impact from the motorbike ban but acknowledged that "some customers are hesitant to buy new cars" following the government's announcements. Japanese carmaker Toyota is the market leader with more than a quarter of total car sales in September, according to data from VAMA. (Reporting by Francesco Guarascio and Phuong Nguyen in Hanoi, Daniel Leussink in Tokyo; Additional reporting by Maki Shiraki and Kentaro Okasaka in Tokyo, Khanh Vu in Hanoi; Editing by David Dolan and Thomas Derpinghaus.)

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By Seher Dareen LONDON (Reuters) -Oil prices held steady on Tuesday after a fall in the previous session as concerns about oversupply and risks to demand, along with the trade dispute between the U.S. and China, the world's top two oil consumers, weigh on the markets. Brent crude futures were unchanged at $61.01 a barrel at 0832 GMT. The U.S. West Texas Intermediate crude (WTI) contract for November delivery, set to expire on Tuesday, was down 15 cents at $57.37. The more active December contract was steady at $57.02. Prices declined to their lowest since early May on Monday on the concerns around oversupply and slowing economic growth resulting from the recent escalations in the U.S.-China trade dispute. "Speculative bets on lower prices are likely to persist as long as Brent remains below $65," said Ole Hansen, head of commodity strategy at Saxo Bank. Both WTI and Brent have shifted to contango market structures, where prices for immediate supply are lower than for later delivery and which typically indicate that near-term supply is abundant and demand is declining. Prices have fallen as the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, have pushed ahead with plans to add more oil to the market. This has led analysts to predict a surplus of crude this year and next, with the International Energy Agency last week projecting a global surplus of nearly 4 million barrels per day in 2026. Goldman Sachs analysts expect Brent prices to hit $52 a barrel in the fourth quarter of 2026, but the decline in prices may take time to materialise due to larger-than-seasonal OECD commercial builds in November being priced in and accelerating builds expected in January. This, along with continued strength in diesel refining margins, was supporting crude demand. A preliminary Reuters poll on Monday showed that U.S. crude oil stockpiles likely rose last week, ahead of weekly reports from the American Petroleum Institute and the EIA. For the week ending October 10, crude builds where more than expected while gasoline and diesel stocks drew more than forecast. [EIA/S] "We’re not in a crisis of excess. Distillates just drew, and any geopolitical surprises can still spark sharp counter-moves in short term, but the prevailing bias is downside unless OPEC+ slows the unwind or macro surprises on the upside," said analyst Ole Svalbye of SEB Bank. Additionally, if the U.S. and China reach a broader agreement in their trade dispute, that could provide a boost, or at least a floor, for prices. Investors are pinning their hopes on a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping next week in South Korea but disputes over tariffs, technology, and market access remain unresolved. (Reporting by Sam Li in Beijing, Ashitha Shivaprasad in Bengaluru; Editing by Christian Schmollinger and Emelia Sithole-Matarise)

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By Andrea Shalal, Steve Holland and Ernest Scheyder WASHINGTON (Reuters) -U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement aimed at countering China on Monday at a meeting marked by Trump's jab at Australia's envoy to the United States over past criticism. China loomed large at the first White House summit between Trump and Albanese, with the U.S. president also backing a strategic nuclear-powered submarine deal with Australia to bolster security in the Indo-Pacific. While Trump and Albanese greeted each other warmly, the U.S. president expressed ire about past criticism of him by Australia's U.S. ambassador Kevin Rudd, a former prime minister. Rudd in 2020 called Trump "the most destructive president in history," later deleting the comment from social media. Trump said he was not aware of the critical comments and asked where the envoy was now. Upon seeing him across the table, Trump said, "I don't like you either, and I probably never will." The visit otherwise appeared to go smoothly, with Albanese and Trump signing a minerals deal that Trump said had been negotiated in recent months. Albanese described it as an $8.5 billion pipeline "that we have ready to go." A copy of the agreement released by both governments said the two countries will each invest $1 billion over the next six months into mining and processing projects as well as set a minimum price floor for critical minerals, a move that Western miners have long sought. A White House statement on the agreement added that the investments would target deposits of critical minerals worth $53 billion, although it did not provide details on which types or locations.  "In about a year from now, we'll have so much critical mineral and rare earths that you won't know what to do with them," Trump told reporters. China's foreign ministry did not comment directly on the deal but said on Tuesday that market and business choices form the global production and supply chain. "Key mineral resource countries should play an active role in ensuring the safety and stability of the industrial and supply chain, and ensure normal economic and trade cooperation," ministry spokesperson Guo Jiakun told a regular news briefing. EXIM ANNOUNCES OVER $2.2 BILLION IN INVESTMENTS The U.S. Export-Import Bank, which acts as the U.S. government's export credit agency, later announced seven letters of interest totaling more than $2.2 billion to advance critical minerals projects in Australia. It said the letters went to Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHM, RZ Resources, and Sunrise Energy Metals. EXIM said the projects span a range of critical minerals essential to advanced defense systems, aerospace components, communications equipment, and next-generation industrial technologies. The investments would help support the re-industrialization of America’s high-tech manufacturing base, while helping to "counter China's export dominance and ensure Western supply-chain resilience," it said. Additionally, the Pentagon plans to build a gallium refinery in Western Australia. China blocked gallium exports to the United States last December. The United States has been looking to boost its access to critical minerals around the world as China takes steps to strengthen control over global supply. Trade tensions between the United States and China have escalated ahead of Trump's meeting with Chinese President Xi Jinping in South Korea next week. The term critical minerals applies to a range of minerals, including rare earths, lithium and nickel. China has the world's largest rare earths reserves, according to U.S. Geological Survey data, but Australia also has significant reserves. The minerals are used for products ranging from electric vehicles to aircraft engines and military radars. TRUMP SIGNALS SUPPORT FOR SUBMARINE DEAL Albanese got welcome support from Trump for the A$368 billion ($239.46 billion) AUKUS agreement, reached in 2023 under then-President Joe Biden. Under the deal, Australia is to buy U.S. nuclear-powered submarines in 2032 before building a new submarine class with Britain. While Trump has been eager to roll back Biden-era policies, he signaled his intent to back the AUKUS submarine agreement, months after his team launched a review of the deal over concerns about the ability of the United States to meet its own submarine needs. Navy Secretary John Phelan told the meeting the United States and Australia were working closely to improve the original AUKUS framework for all three parties "and clarify some of the ambiguity that was in the prior agreement." Trump said these were "just minor details," adding that "there shouldn't be any more clarifications, because we're just – we're just going now full steam ahead, building." Ahead of Monday's meeting, Australian officials emphasized that their country is paying its way under AUKUS, contributing $2 billion this year to boost production rates at U.S. submarine shipyards, and preparing to maintain U.S. Virginia-class submarines at its Indian Ocean naval base from 2027. The delay of 10 months in an official meeting since Trump took office had caused some anxiety in Australia as the Pentagon urged the Australian government to increase defense spending. The two leaders met briefly on the sidelines of the United Nations General Assembly in New York last month. The rare earths agreement came a week after U.S. officials condemned China's expansion of rare earth export controls as a threat to global supply chains. Resource-rich Australia, wanting to extract and process rare earths, put preferential access to its strategic reserve on the table in U.S. trade negotiations in April.  As part of the rare earths agreement, Trump and Albanese agreed to cut permitting for mines, processing facilities and related operations in order to boost production. The deal called for cooperation on the mapping of geological resources, minerals recycling and efforts to stop the sale of critical minerals assets "on national security grounds." This was an oblique reference to China, which has bought major mining assets across the planet in the past decade, including the world's largest cobalt mine in Congo, from U.S.-based Freeport-McMoRan in 2016. $1 = 1.5368 Australian dollars) (Reporting by Kirsty Needham in Sydney, Andrea Shalal, Steve Holland, Jarrett Renshaw and David Brunnstrom in Washington, and Ernest Scheyder in Houston; Additional reporting by Liz Lee in Beijing; Editing by Kate Mayberry, Colleen Jenkins, Will Dunham and Nick Zieminski)

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