The Japanese economy shrank at an annual rate of 2% in the first quarter of this year, as consumption and exports declined, the government said Thursday.

Although unemployment has stayed relatively low in the world's fourth largest economy at about 2.6%, wage growth has been slow and prices have risen partly due to weakness of the yen against the U.S. dollar.

Fewer Americans applied for unemployment benefits last week as layoffs remain at historically low levels even as other signs that the labor market is cooling have surfaced.

Jobless claims for the week ending May 11 fell by 10,000 to 222,000, down from 232,000 the week before, the Labor Department reported Thursday. Last week's applications were the most since the final week of August 2023, though it's still a relatively low number of layoffs.

Profit at Sony surged 34% in the last quarter on strong sales of its video games, music and movies, the Japanese electronics and entertainment company said Tuesday.

Tokyo-based Sony Corp.'s quarterly profit totaled 189 billion yen ($1.2 billion), up from 141 billion yen the year before. Quarterly sales for the maker of the PlayStation game machines rose 14% to 3.48 trillion yen ($22 billion).

Protesters in the Pakistan-held part of Kashmir called off rallies over price hikes that have left four people dead after authorities agreed to lower prices of electricity and wheat.

The local civil rights alliance, the Awami Action Committee, said it had called off a planned march in the city of Muzaffarabad, the capital of the Pakistan-held part of the disputed Himalayan region, after the government accepted all of its demands.

When Chinese President Xi Jinping visited Hungary last week, he arrived to one of the few places in the European Union where his country is considered an indispensable ally rather than a rival. By the time he left on Friday, he'd secured deals that provide fertile ground for China's plans of economic expansion in Europe.

After meeting with nationalist Prime Minister Viktor Orbán on Thursday, the leaders addressed a small group of select media in Hungary's capital, Budapest, announcing the formation of an "all-weather partnership" that would usher in a new era of economic cooperation.

The Biden administration announced plans to slap new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment — an election-year move that's likely to increase friction between the world's two largest economies.

The tariffs come in the middle of a heated campaign between President Joe Biden and his Republican predecessor, Donald Trump, in which both candidates are vying to show who's tougher on China.

A tiny, low-priced electric car called the Seagull has American automakers and politicians trembling.

The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China, but drives well and is put together with craftsmanship that rivals U.S. electric vehicles that cost three times as much. A shorter-range version costs under $10,000.

World stocks were mixed on Monday after Wall Street coasted to the close of another winning week.

European markets were little changed. Britain's FTSE 100 rose 0.1% to 8,444.23. Germany's DAX edged down by 2.40 to 18,770.45 and the CAC 40 in Paris lost 0.1% to 8,210.88.

The long-haul carrier Emirates announced Monday it saw record profits of $4.7 billion in 2023 as the airline fully took flight after the turbulent years of the coronavirus pandemic disrupted its operations.

Emirates, owned by Dubai's government, announced revenues of $33 billion, compared to $29.3 billion the year before. Profit the year prior had been $2.9 billion.

The sharp interest rate hikes of the past two years will likely take longer than previously expected to bring down inflation, several Federal Reserve officials have said in recent comments, suggesting there may be few, if any, rate cuts this year.

A major concern expressed by both Fed policymakers and some economists is that higher borrowing costs aren't having as much of an impact as economics textbooks would suggest. Americans as a whole, for example, aren't spending much more of their incomes on interest payments than they were a few years ago, according to government data, despite the Fed's sharp rate increases. That means higher rates may not be doing much to limit many Americans' spending, or cool inflation.