There is a growing movement among companies to establish “alumni networks,” where former employees can interact with their former employers. The companies are aiming to improve their operations and create new businesses by leveraging the expertise of “outside” people who are familiar with the company culture.

NTT West, Inc. officially launched its alumni network in April, and about 80 people have been interacting via a website. In mid-June, the company held its first in-person networking event at the company headquarters in Miyakojima Ward, Osaka, where former employees gathered and drank beer.

“There’s a ‘common language’ that only people who have worked at the same company can understand, which makes it easier to build relationships,” said Tetsuya Yamamoto, 57, who quit NTT West last year and now works at a consulting firm in Tokyo. “I hope to collaborate with my former company as a business partner to create new opportunities.”

NTT West is considering holding regular networking events in the future.
“We hope to connect with former employees and create new value,” a spokesperson said.

With labor shortages becoming severe, a growing trend had emerged in which former employees were rehired so that their contributions could be utilized. Recently, however, there has been a noticeable shift toward maintaining only loose connections with former employees without rehiring them.

Honda Motor Co. announced in October that it had established an alumni network. The aim of the network is not only to secure talent in the IT and software fields but also to improve the company’s work environment with the expertise of former employees who have worked at other companies.

“We want to leverage knowledge gained at other companies to drive our company’s growth,” a spokesperson said.

An increasing number of companies are creating networks, particularly major companies such as Toyota Motor Corp. and Panasonic Holdings Corp.

“Human capital management, which sees personnel as part of a company’s capital, is becoming increasingly important, and retirees are also being considered as capital,” said Hitoshi Suzuki, CEO of Hackazouk in Tokyo, which develops alumni exchange systems.

However, the utilization of alumni remains limited in practice. According to a survey conducted in November by the specialized magazine “Gekkan Somu” (Monthly General Affairs), only 10.3% of companies have alumni networks. Reasons cited for not having them include “high operational and labor costs” and “no interest in utilizing retired talent.”

“As workforce mobility increases, it is crucial for companies to maintain connections with former employees,” said Kaoru Tsuda, head of the research center at Indeed Recruit Partners Co., which specializes in talent development.

“When it comes to leveraging alumni, it is essential to consider why you want to use them and to align that purpose with your business strategy.”
 

 

Fuji Media Holdings Inc on Thursday said that it will implement measures to prevent activist shareholders from gaining control of the company.

The announcement of the anti-takeover steps comes after shareholders, including prominent investor Yoshiaki Murakami, told Fuji Media executives in meetings held between February and July that they may acquire a 33.3 percent stake in the firm, according to Fuji Media.

Such a move would give them veto power on important management decisions. As of July 1, the shareholders held a 15.06 percent stake.

"We are concerned that (they) would take action to maximize personal profit instead of for the benefit of all shareholders," Fuji Media, the parent company of Fuji Television Network Inc., said in a press release.

Fuji Media said it was planning to issue stock acquisition rights and allocate them for free when an investor acquires 20 percent or more of its shares.
The measures, aimed at reducing the stake held by activist shareholders, will require approval at the shareholders' meeting.

The company also established an independent committee comprising six outside directors.

Fuji Media has been reeling from a sex scandal involving a TV host at Fuji TV that has cost it sponsors and viewers.
 
 

 

With China expected to resume importing Japanese beef, it is a huge step forward for the Japanese government, which aims to increase exports of agricultural, forestry and fishery products.

A Japan-China agreement on an animal health and quarantine took effect Friday, paving the way toward the resumption of Japanese beef exports to China.

However, it is still uncertain when beef shipments to China will actually resume, as the two countries have to hold further discussions regarding product safety and quarantine procedures.

China suspended imports of Japanese beef following an outbreak of bovine spongiform encephalopathy in Japan in 2001. In November 2019, the two countries signed an agreement on cooperation in animal health and quarantine, a necessary step before exporting livestock products.

However, China did not take further steps to resume imports, so the agreement was not able to take effect.

Ahead of resuming exports, Japan’s food safety procedures need to be evaluated by China. It will also be necessary to finalize specific conditions for export products, such as the meat processing method and hygiene control.

“The conditions necessary to resume exports will depend on what the Chinese side asks for,” said an agriculture ministry official. “It’s still uncertain when we will be able to resume exports.”

Japan’s exports of agricultural, forestry and fishery products exceeded ¥1.5 trillion in 2024. The government set a goal to more than triple the figure to ¥5 trillion by 2030.

While beef exports stood at ¥64.8 billion in 2024, the government hopes to almost double the figure to ¥113.2 billion by 2030.

By country and region, the United States was the largest importer of Japanese beef at ¥13.4 billion in 2024, followed by Taiwan at ¥11.2 billion, Hong Kong at ¥8.4 billion and Cambodia at ¥6.7 billion.

Exports of Japanese beef has nearly doubled compared to 2019 as a result of the surging global popularity of washoku Japanese cuisine.

It has been pointed out that Japanese beef still reached China through Cambodia following China’s suspension of its import. If China officially resumes importing Japanese beef, it will become possible for Japan to export the product directly to China, a massive market with a population of 1.4 billion.

The resumption may drastically increase Japanese beef exports.
“As China has such a large population, there will be a high demand for Japanese beef,” said an official of the Japan Livestock Products Export Promotion Council.
 
 

No deal before the initial July 9 deadline for U.S. "reciprocal" tariffs is expected to pressure Toyota Motor Corp and other major carmakers to raise prices to offset higher import costs -- a strategy likely to dent demand and further squeeze profits.

Japan-U.S. trade talks have made little headway, dashing Japanese carmakers' hopes for a deal to eliminate or lower an additional 25 percent auto tariff by the expiration of a pause on country-specific tariffs, now extended to Aug 1.

Britain and Vietnam are the only countries to have reached a deal with the Trump administration. Japan had sought an agreement covering not just reciprocal tariffs but also auto duties and other trade issues as a package.

A total tariff rate of 27.5 percent imposed on April 3 on cars shipped to the U.S. market is threatening to slow overall auto demand, with analysts noting that manufacturers offering attractive hybrid lineups may be better positioned to withstand the impact.

"Automakers, especially those with low sales volumes or in management crisis, will have no option but to raise vehicle prices," said Hiroki Shibata, managing director at S&P Global Ratings.

"Now that the auto tariffs have been in place for three months...automakers' efforts to raise vehicle prices will be more apparent in the coming months through September," he said.

U.S. President Donald Trump said Monday that the United States will impose a 25 percent tariff on imports from Japan starting Aug 1, slightly higher than the previously set rate of 24 percent.

The president said the latest tariff measure will not affect sector-specific tariffs that have already taken effect, such as those on vehicles, auto parts, steel and aluminum.

"It seems the United States has no intention to lower auto tariffs because if it did so, it would keep facing a dilemma of its trade deficit with Japan being left unresolved," said Junichi Makino, chief economist at SMBC Nikko Securities, noting that autos account for about 70 percent of U.S. imports from Japan.

"The Japanese government may give up on its efforts to reduce auto tariffs and shift to negotiating lowering levies on other items," Makino said.

Among Japan's top three automakers, Toyota is expected to be the least affected by price increases, as demand for its wide range of hybrid models is likely to remain strong in the U.S. market, said Yuta Misumi, associate director at S&P Global Ratings.

Hybrid vehicles are gaining popularity in the world's second-largest auto market, with sales jumping 36 percent last year, according to the government-affiliated Japan External Trade Organization.

Honda Motor Co has also attracted U.S. customers with its hybrid lineup, and strong sales in the United States are helping offset sluggish performance in China, the world's largest auto market, Misumi said. Nissan Motor Co., meanwhile, is focused on restructuring, including scaling back global production capacity and its workforce, he added.

Toyota, the world's top carmaker by volume, disclosed the impact of the tariffs for just the first two months of the year through March 2026, saying its operating profit was reduced by 180 billion yen ($1.24 billion).

Nissan said its full-year operating profit could be reduced by up to 450 billion yen, while Honda estimates the impact of the auto tariffs could reach as much as 650 billion yen in the current fiscal year.

Starting July 1, Toyota raised U.S. prices by an average of $270 per vehicle for its Toyota brand models and $208 for its upscale Lexus line.

Mitsubishi Motors Corp., which initially responded to the higher tariffs by suspending deliveries from U.S. ports to local dealers, lifted prices for some models by an average 2.1 percent.

Toyota said the price hikes were part of its annual review, while Mitsubishi Motors said its new prices were not aimed at addressing the auto tariffs.
Among other automakers, Ford Motor Co reportedly raised prices of some U.S.-bound models made in Mexico, and Subaru Corp. also raised vehicle prices.

S&P Global Ratings in May cut its forecast for 2026 U.S. auto sales by 1 million to 15 million vehicles, citing weaker demand partly due to higher prices.

Still, analysts say the quickest and most effective way for carmakers to ease tariff pressure is to pass higher import costs on to customers.

Analysts say carmakers could also build new plants in the United States to avoid higher tariffs -- a goal the Trump administration is seeking to achieve through its trade policy.

But new plants would require significant investment and years to become operational, and carmakers would also need to reorganize parts of their global supply chains by persuading suppliers to serve the new facilities, analysts say.

Higher U.S. labor costs and the need to procure some key components from China are also likely to pose challenges, they say.

As the United States will remain a key market, "the future performance of each company depends on the success of their efforts to mitigate the tariff impact," Misumi said.
 
 

Nippon Steel Corp. plans to double its crude steel production in the United States in three to five years, according to its chairman and chief executive officer, Eiji Hashimoto.

During an interview with The Yomiuri Shimbun on Tuesday, Hashimoto outlined a plan to achieve the goal by improving production efficiency at U.S. Steel Corp., its wholly owned subsidiary. The newly purchased firm is also to be equipped with cutting-edge technology.

Globally, Nippon Steel plans to increase its crude steel output from 58 million tons at present to 100 million tons by expanding production in India and Thailand, said Hashimoto.

At U.S. Steel, whose buyout took about 18 months to pull off, Nippon Steel plans to invest $11 billion (about ¥1.6 trillion) by 2028 to upgrade aging production facilities, added Hashimoto.

U.S. Steel currently produces about 11 million tons of crude steel in the United States, maintaining a U.S. market share of around 15%.
Nippon Steel plans to improve U.S. Steel’s product lineup by providing advanced manufacturing technologies, such as for high-performance electrical steel sheets, which are used in large transformers and motors for electric vehicles.

By improving production efficiency, the firm aims to boost yield and reduce costs.

“Through our new investments, we will expand capacity, broaden our production offerings and double production,” Hashimoto said.

Though 40 engineers have been dispatched to the United States, Hashimoto indicated that more personnel would be needed to support the move to greater capacity and an enhanced product lineup.

The U.S. government holds a “golden share” in U.S. Steel, giving it veto power over key management decisions. While the government could change how it involves itself in the firm after an election, Hashimoto said, “I am not concerned because the U.S. government’s goal of restoring the manufacturing industry aligns with Nippon Steel’s management strategy.”

By raising global crude steel production to 100 million tons, Nippon Steel aims to become the world’s leading steel manufacturer. Acknowledging that ArcelorMittal S.A., a European giant in the industry, is currently the “actual world leader,” Hashimoto said, “We must close the gap and then overtake them.”

In 2019, Nippon Steel and ArcelorMittal jointly acquired a steel manufacturer in India. The companies now plan to increase steel output by 15 million tons and establish one of the world’s largest steel mills there.

Additionally, Nippon Steel plans to increase its production capacity in markets where it operates independently, such as Europe and Thailand.

The steelworks owned by U.S. Steel in Slovakia could be expanded to more than twice their current capacity. Nippon Steel also plans to continue investing in facilities in Thailand, aiming to secure a majority of the market.

With China continuing to export low-priced steel to the global market, Hashimoto argued that “To avoid negative impacts from China, we can’t allow it to dominate crucial markets like the United States, India, Europe and Thailand.”
 
 

Japan's Cabinet Office on Wednesday signed a memorandum of cooperation with the British government, to boost direct investment from Britain into Japan.

Under the memorandum, Japan will promote information sharing and exchanges with the British government, British companies and investors, mainly in the fields of decarbonization and life science.

The balance of direct investment from abroad to Japan stood at 53 trillion yen at the end of 2024, with Britain logging the second-largest investment total, at 9 trillion yen, after the United States.

The memorandum aims to help achieve Japan's target of increasing foreign investment to 120 trillion yen in 2030.

It emphasized the significance of the Japan-Britain Comprehensive Economic Partnership Agreement (CEPA) and the two countries' membership for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
 
 

Japanese solar panel manufacturers are taking a proactive approach as they see business opportunities following the decision by the Tokyo metropolitan government and the Kawasaki city government to require that newly built houses have solar panels installed in April.

Although Chinese manufacturers currently dominate solar panel production, Japanese manufacturers are looking to compete with new products and initiatives. These include new types of solar panels that are better suited to Japanese homes, where securing space for installation is difficult, as well as a system that reduces users’ costs.


New type of product

In late May, Sharp Corp. released a new type of solar panels that can prevent light-related issues by reducing optical reflection.

By adopting glass with pebble-grained surfaces, light is diffused and reflected at a level 1/20 to 1/30 that of conventional models.

Solar panels are generally placed on the south side of roofs to maximize sunlight exposure. In urban areas, particularly in central parts of big cities, where land is limited, panels are often placed on the north side of roofs.

However, since sunlight is reflected at low angles on the north side of roofs, there is a tendency for light to enter nearby houses.


Reducing cost burdens

In June, Panasonic Corp. introduced a system that enables companies to install solar panels without paying any upfront costs through Osaka Gas Co.’s Power Purchase Agreement (PPA) program.

Under the program, Osaka Gas owns the solar power generation systems for 15 years from installation and recovers the initial costs by selling the power generated by the systems.

During this period, homeowners can purchase electricity from Osaka Gas at discounted rates. Starting in the 16th year, homeowners gain ownership of the solar power generation systems free of charge and can use or sell the electricity produced.

According to the Economy, Trade and Industry Ministry, the average cost of installing solar power generation systems for newly built houses in 2021 was ¥271,000 per kilowatt. This figure rose to ¥286,000 in 2024.

The head of Panasonic’s sales promotion division said: “While both installing costs and electricity bills are on the rise, we aim to reduce users’ financial burden with the new system.”

The government has set a goal to reduce greenhouse gas emissions by 46% by fiscal 2030, compared to fiscal 2013 levels.

In order to achieve this goal, the government plans to increase the percentage of newly built homes with solar panels from 36.5% in fiscal 2023 to 60% in fiscal 2030.

Progress has been made thus far in terms of the rate of solar panel installations. The number of solar panel systems in homes has nearly doubled, growing from about 1.69 million in fiscal 2013 to about 3.35 million in fiscal 2023.


Chinese makers gain strength

However, Japanese manufacturers, which were once dominant in solar panel production, are now being pushed aside by Chinese manufacturers who are gaining strength by selling low-priced products.

According to the Japan Photovoltaic Energy Association, about 97% of solar panels purchased in fiscal 2004 in the nation were made by Japanese makers. But in fiscal 2024, about 94.9% of purchased panels were made by foreign manufacturers.

Prof. Yuzuru Ueda of Tokyo University of Science, an expert of engineering studies, said: “It’s difficult to differentiate solar panels made by Chinese manufacturers in the current technological landscape.

Japanese manufacturers should leverage their strengths in design and reliability to suit Japan’s housing conditions and respond to the needs of clients very thoroughly.”
 
 

Japanese convenience store operator Lawson Inc said on Monday that it will launch a new paid service to offer its stores' parking lots to travelers spending the night in their vehicles amid soaring accommodation costs.

The company will hold a trial at six outlets in Chiba Prefecture from July 14 through June next year, with plans to expand the service nationwide. Expecting young people to use the service, it plans to charge 2,500 yen to 3,000 yen per night.

The parking lots, available from 6 p.m. to 9 a.m. the next day, can be reserved through the RV-Park.jp website run by the Japan Recreational Vehicle Association and paid for with a credit card.

The company said that there are not enough places for people to stay overnight in vehicles amid the growing popularity of recreational vehicles and budget-minded travel.

While public bath facilities and roadside stations also offer similar services, Lawson emphasizes the advantage of the outlets' around-the-clock operation, which enables users to buy food and drinks and use the bathroom in the store at any time.

"We can also provide a sense of security since there are always staff in the store," an official of the company said.
 
 

Nissan Motor Co is exploring a partnership with Taiwan's electronics giant Foxconn in the electric vehicle sector, a source familiar with the matter said Sunday.

The plan under consideration would involve producing Foxconn's EVs at Nissan's signature Oppama plant near Tokyo, which had previously been eyed for closure, the source added.

If realized, the deal is expected to keep the Oppama plant in operation, reversing earlier closure plans prompted by Nissan's financial difficulties. The partnership could also give momentum to the company's ongoing restructuring efforts.

Foxconn has been accelerating its EV operations, having already agreed to supply EVs to Mitsubishi Motors Corp. The firm is also in talks with Mitsubishi Fuso Truck and Bus Corp over the delivery of electric buses.

The Taiwanese company views a tie-up with Nissan as a potential catalyst to expand its footprint in the Japanese market, the source said. Nissan's main Oppama plant in Yokosuka, Kanagawa Prefecture, is where the firm pioneered EV production.
 
 

Japanese companies agreed to raise wages by an average 5.25 percent in this year's spring wage talks, the second straight year to exceed 5 percent, the country's largest labor union said Thursday, although salary growth failed to keep pace with ongoing inflation.

The Japanese Trade Union Confederation, also known as Rengo, said its final tally of the results of pay negotiations from over 5,000 member unions found the average monthly wage hike stood at 16,356 yen ($110).

The results came a year after wages increased by over 5 percent for the first time in 33 years.

But wages among small- and medium-sized firms lagged behind their larger counterparts, rising by an average 4.65 percent, or 12,361 yen.

"The scope (of companies) raising wages has expanded, but it's a shame that small to medium-sized firms have failed to reach 5 percent. We were unable to halt the growing gap," said Akira Nidaira, executive director at Rengo.

The latest government data also showed real wages falling for the fourth straight month in April, as core consumer prices continued their upward trend.

"The difference in profits and corporate resilience became glaringly apparent," said Shinichiro Kobayashi from Mitsubishi UFJ Research and Consulting Co., adding that smaller enterprises may struggle to recruit people because of the gap.

Spring negotiation wage hikes had fallen below 3 percent since 1995, but grew to 3.58 percent in 2023. The final tally in 2024 was an average 5.10 percent as a whole, and 4.45 percent among small to medium-sized firms.

Meanwhile, summer bonuses for union members in major companies hit a record average 990,848 yen, the highest since the current method of data collection was introduced in 1981, according to preliminary numbers from the Japan Business Federation.

The figure rose 4.37 percent compared to the previous year, climbing for the fourth straight year.
 
 

Japanese carmakers have largely absorbed the cost of U.S. President Donald Trump’s tariffs on auto imports, a move that may undermine the Asian nation’s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.

So far, just three of Japan’s six major automakers have raised prices in the U.S., and only Subaru’s hike has come close to the 25% tariff imposed on imported vehicles.

Toyota, the world’s No. 1 carmaker, only lifted prices on some models by a few hundred dollars while Mitsubishi Motors increased prices by an average of just 2.1% across three models. The average price of a new car in the U.S. rose 2.5% in April to about $48,700.

The modest nature of the changes signals Japan’s carmakers are reluctant to pass the hit on to consumers. But it’s a decision that could backfire. Sparing American shoppers any kind of extreme sticker shock means Trump is less likely to change course.

Auto tariffs have emerged as a key sticking point in bilateral negotiations between the U.S. and Japan as Trump fixates on U.S. deficits in the sector while Japan tries to safeguard one of its main economic powerhouses.

Despite Japan’s chief trade negotiator Ryosei Akazawa holding a seventh round of talks with U.S. counterparts, the two countries remain at loggerheads and the clock is ticking: across-the-board levies of 24% on Japanese goods are set to come into effect next Wednesday. Trump has even suggested they could be as high as 35%.

Industry watchers say an extended stalemate may force Japanese carmakers’ hands, with an ultimately beneficial outcome.

"If prices continue to rise due to Trump’s tariffs, the government will realize it’s not a simple scenario where raising tariffs benefits the U.S. economy,” Takeshi Miyao, an analyst at automotive consultancy Carnorama, said. "This may lead to changes in tariff negotiations.”

Japan’s cautious approach contrasts with the quick retaliation by China, which leveraged its dominance in industries like e-commerce to make it clear to Trump that American consumers would be footing the bill. Some products sold on platforms like Temu and Shein nearly doubled in price in the wake of fresh duties.

Tokyo, for its part, has maintained its stance that it will try to settle all the tariff disputes in one go. Akazawa has made clear that despite the looming July 9 deadline, he won’t be pressured into a deal.

The protracted negotiations make it more likely Japan’s carmakers will turn to price increases in the U.S. to minimize the impact on their bottom lines.

Those hikes could start when manufacturers offer upgraded specifications on models, Bloomberg Intelligence senior analyst Tatsuo Yoshida said. Still, any price increases are likely to be phased in gradually, and it could take as long as three to four years for a 25% levy to be reflected in vehicle prices, he said.

While the consensus is that some level of tariffs on cars will be inevitable, a lower 10% tariff may be more palatable. The auto industry is a bellwether for wage trends and generates around 10% of gross domestic product. The sector also accounts for one-third of Japan’s exports to the U.S..

"There’s no reason to continue cutting profits indefinitely to offset high tariffs when it’s unclear how long this situation will persist,” Carnorama’s Miyao said.
 
 

Japan’s newest issued banknotes marked their first anniversary on Thursday, yet the new bills still only account for about 30% of all bills in circulation.

Although more vending machines and other devices have become compatible with the new bills, the replacement of older banknotes has been slow.

According to the Japan Vending System Manufacturers Association, nearly all railway ticket machines have become compatible with the new bills over the past year. The new bills are also being accepted by 50%-60% of beverage vending machines.

However, the transition is slow when compared to the last time new banknotes were introduced in 2004.

According to the Bank of Japan, the new bills introduced in 2004 made up 61.1% of those in circulation 11 months after their introduction. This time, however, the figure was only 28.8%.

This difference can be attributed to the increased use of cashless payment methods, such as credit cards and QR code transactions. The percentage of cashless payments rose to 42.8% in 2024, which is a 2.5-fold increase from 10 years ago. This reflects the growing number of people who do not use banknotes.

Another factor contributing to the slow adoption of the new banknotes is the increase in the number of people keeping cash at home. The number of bills in circulation grew from about 11 billion at the end of 2004 to about 17 billion at the end of 2024.

Banks have kept interest rates on deposits low due to the BOJ’s low interest rate policy. This has apparently prompted an increasing number of people to store cash at home, resulting in a fewer number of damaged or soiled older banknotes being returned to the central bank.

The city of Fukaya, Saitama Prefecture, the hometown of Eiichi Shibusawa, who is featured on the new ¥10,000 banknote, held an event on Wednesday to celebrate the first anniversary of the new bill’s issuance.

The stalls set up at the event attracted many visitors. Among those who were paying with the new banknotes, some were making payments using QR codes.

“I usually pay with my credit card or via QR code because I don’t want to bring bulky coins,” said a 50-year-old residet in the city.

However, experts believe that the demand for banknotes will remain to some degree. While cashless payments are convenient, they could become unusable in the event of a system malfunction or disaster. The new banknotes feature cutting-edge anti-counterfeit measures, which gives people more confidence in the bills.

“People will have fewer occasions to use cash, but it will continue to be a part of society,” said Tsuyoshi Ueno, a senior economist at the NLI Research Institute.
 
 

The number of food and beverage items that will face price hikes in 2025 is projected to surpass 20,000 for the first time in two years, mainly due to high material and logistics costs, a credit research firm said Monday.

In July alone, 195 major food makers are planning price hikes for 2,105 items, such as seasoning and snacks, about a fivefold jump from a year earlier, according to a survey by Teikoku Databank Ltd.

Price hikes through November that have already been announced involve 18,697 items, with the company saying that the trend of rising prices of food and beverages is likely to continue "for the time being."

By category, seasoning, including broth and curry roux, will be mostly affected, with 6,108 items to see higher prices, followed by beverages including beers and soft drinks at 4,483 items and processed food including frozen meals and packaged precooked rice at 4,138.

In addition to a surge in raw material costs, the company said high utility costs and increasing personnel expenses due to labor shortage are also driving the price hikes.

Since crude oil prices have recently fluctuated amid tensions in the Middle East, the credit research firm said, "We need to keep an eye on price hikes derived from energy."

The number of food items that saw price hikes totaled 32,396 items in 2023 but dropped to 12,520 in 2024, according to the company.
 
 

Strong demand from inbound tourism has significantly driven up land prices in tourist destinations nationwide, a trend extending to areas around the 2025 Osaka-Kansai Expo.

According to an announcement by the National Tax Agency on Tuesday, land prices rose year-on-year in 35 prefectures, and the national average increased for the fourth consecutive year.


Popular ‘Little Kyotos’

A 55-year-old Belgian tourist was seen smiling as she looked at a “sarubobo” (monkey baby) — a local folk artwork — in Takayama, Gifu Prefecture, on June 25.

She said that a guidebook sparked her interest in the culture and nature in the area and that she found the traditional wooden buildings to be amazing.

Takayama is popular for its old townscape, which comprises historic sake breweries and traditional houses.

Last year, the city, dubbed “Hida’s Little Kyoto,” saw its foreign overnight visitors surge to about 769,700, an increase of 70% compared to the previous year. That number is a record high, significantly surpassing the pre-pandemic figure of about 612,000 in 2019.

Reflecting this popularity, land prices in the area along Kami-Sannomachi Shimo-Sannomachi-dori street, located in the central part of the city, rose by 28.3% this year compared to the previous year, the fourth highest increase in the nation.

According to the city’s historic townscape preservation association, the surge in demand driven by inbound tourism means that buyers are quickly found even for shops on the main street of Kami-Sannomachi that closed due to the aging of their owners. The trend has left the street with almost no vacant properties.

At the Sumiyoshi Ryokan inn with a more than 100-year-old building located along the Miyagawa river, a stream famous for its morning market, more than 90% of guests are inbound tourists.

“We’re almost fully booked until September,” said Tsunetada Minami, 50, who manages the inn. “International travelers are essential for the survival of our business.”


Spreading on social media

Even in Tokyo, where land prices saw the highest increase among all prefectures at 8.1%, it was mainly inbound tourism that was responsible for the rise.

Land prices on Kaminarimon-dori street in Asakusa, Tokyo, recorded a 29% increase, the third highest nationwide and the highest in Tokyo. Nakamise-dori shopping street in the district is bustling with foreign tourists posing for photos in kimonos and buying souvenirs.

“Events like Sanja Festival have spread on social media, increasing their popularity among foreigners,” said Shigemi Fuji, 76, chairperson of the Asakusa Tourism Federation.

Meanwhile, it has also been pointed out that the number of Japanese visitors to Asakusa has been decreasing. “Some rickshaw drivers have days when all their passengers are foreign tourists,” said Takashi Sudo, 45, manager of Isshin, which operates a rickshaw service.



Appeal of Expo

Although the Osaka-Kansai Expo, which opened in April and is being held on the artificial island of Yumeshima in Konohana Ward, Osaka, had yet to open at the time of the land price assessment, speculation over associated redevelopment projects has still boosted land prices in the ward.

The area around Yumeshima Station on the Osaka Metro Chuo Line, saw an 18.2% increase from the previous year. The station, which opened in January, is the closest one to the Expo venue.

Land in the area around Bentencho Station, a station where passengers transfer from a JR line to access Yumeshima, also saw an 11% price increases.

Near the station, there is a 20,000-square-meter plot of land, which used to be the site of a municipal high school. The city in September last year solicited redevelopment proposals for the site and received 12. “There is a lot of interest in the area, as it’s close to Yumeshima,” a city official said.

According to a British company that operates hotels in 10 locations in Osaka, the average rate for a room at its hotels has increased by 30% year-on-year since the Expo opened in April.

“In addition to visitors from Asia, there has been a notable increase in visitors from Europe and the United States,” an official of the company said. “The Expo is serving as a huge advertisement for promoting the appeal of Osaka to the world.”
 
 

The Japan Fair Trade Commission has decided to issue a cease and desist order against Harley-Davidson Japan K.K. (HDJ), a Tokyo-based motorcycle sales company, for unfair trade practices in violation of the antimonopoly law, sources report.

According to the sources, HDJ unilaterally imposed difficult-to-meet sales quotas on dealers, a practice which was detrimental to them. The JFTC is also expected to issue a surcharge payment order of about ¥200 million.

Harley-Davidson is the leading manufacturer of large motorcycles in the United States, with some models costing over ¥5 million. HDJ, its Japanese subsidiary, has an exclusive distribution agreement with about 90 dealers in Japan.

The sources say that no later than January 2023, HDJ began saddling dozens of dealers with sales quotas that they could not meet without purchasing new motorcycles from themselves. HDJ also indicated that it would not renew the dealers’ exclusive sales contracts if they did not at least partially meet these quotas.

The dealers, not wanting their contracts to be terminated, bought new motorcycles in the names of their own executives and employees to drive up their sales numbers.

It is believed that the purchased vehicles were registered in the names of the executives and others and resold as “registered unused vehicles” at discount prices lower than those of new vehicles. Some dealers spent tens of millions of yen a year buying their own motorcycles.

The JFTC found that HDJ used its strong position to gain profits for itself at the dealers’ expense, and that such practices legally constituted “abuse of a superior bargaining position.” It has already sent HDJ a plan for measures to be taken and will formally issue the order after hearing HDJ’s opinion.
 
 

China has lifted a ban on seafood imports from most regions of Japan, which was imposed two years ago due to concerns over the release of treated waste water from the Fukushima nuclear plant.

Beijing said it will "conditionally resume" the imports from Japan with the exception of 10 of the country's 47 prefectures, including Tokyo and Fukushima.

Samples collected over long-term monitoring of nuclear-contaminated water from Fukushima had "not shown abnormalities", China's General Administration of Customs wrote on 29 June.

A tsunami in 2011 flooded three reactors of the Fukushima plant in north-east Japan in what is regarded as the world's worst nuclear disaster since Chernobyl.

Three of six nuclear reactors at the plant suffered a meltdown during the tsunami, leaving the facility severely damaged. Over the years more than a million tonnes of treated waste water accumulated there.

In 2023, Japan began discharging the treated waste water into the ocean - a move backed by the International Atomic Energy Agency. The process is expected to take up to 30 years.

Although most experts agree that the release is safe, some scientists say there isn't enough research yet on the potential impact on the ocean.

But Beijing criticised Japan's decision and almost immediately banned seafood from the country, citing environmental concerns and safety fears.

Before that, China had been Japan's biggest seafood buyer accounting for nearly a quarter of its exports.

Japan has said that China's move to partially lift the ban was a "positive" move, adding that the government will continue to urge Beijing to accept seafood imports from all of its regions.

The decision came after Tokyo promised to ensure the safety and quality of its exports.

Production companies that had suspended imports must now reapply for registration in China and would be subject to supervision, officials said.

China and Japan are key trading partners but have long had a testy relationship because of territorial disputes and Japan's occupation of parts of China in the past.
 
 

Japan is driving Asia's M&A rebound in 2025 with a record $232 billion worth of deals in the first half, and bankers expect the trend to sustain fueled by multi-billion dollar take-private arrangements, outbound investments and private equity activity.

Management reforms to tackle chronic low valuations among Japanese firms are spurring a flurry of foreign and activist investor interest, while Japan's low interest rates - which support deals - mean the appetite for more deals remains strong, bankers say.

The deals involving Japanese companies more than tripled in value in the first half, while in the same period Asia M&A value reached $650 billion, more than double the amount year-on-year, LSEG data showed.

Bankers say government calls for better corporate governance, including the privatisation of listed subsidiaries, as well as outbound acquisitions by Japanese firms seeking new growth avenues will keep igniting mega deals.

Moreover, Japan has been relatively insulated from global volatility despite the broader geopolitical and macroeconomic uncertainty, helping to underpin deals momentum, they say.

A cohort of Toyota Motor group companies and telecoms giant Nippon Telegraph and Telephone took private listed subsidiaries in deals worth $34.6 billion and $16.5 billion respectively, among the largest transactions globally.

"There are many other deals like these on the way and their number is increasing," said Kei Nitta, global head of M&A at Nomura Securities.
SoftBank Group also led a new fundraising of up to $40 billion into ChatGPT maker OpenAI in the biggest private tech funding round in history.

The long-standing trend of Japanese firms looking abroad for growth opportunities in the face of a shrinking home market has continued despite heightened uncertainty in the global economy.

 Japanese financial institutions, such as insurer Dai-ichi Life and Nomura Holdings, announced major deals and bankers say demand remains robust across industries.

"Debates over tariffs and foreign conflicts mean that some investment decisions are taking longer than usual and some customers have become more cautious, but we consider appetite for investment itself to remain very strong," Nitta said. 

Japanese firms themselves have also become more attractive acquisition targets as global firms have reconsidered their supply chains and distribution of resources over the past two years, Nitta added.

However, there are some hurdles that could slow dealmaking in Japan.
Uncertainty around the global economic outlook has made assessing companies' future prospects more difficult, leading to a disconnect in valuation expectations between buyers and sellers.

This has caused an increasing number of deals to fail, said Atsushi Tatsuguchi, head of the M&A advisory group at Mitsubishi UFJ Morgan Stanley Securities.

As part of the corporate reform drive, firms are under rising pressure to offload non-core business units, with private equity funds increasingly the destination for the hived off parts.

Convenience store operator Seven & I Holdings – itself the target of a buyout bid from Canadian rival Alimentation Couche-Tard – sold off a bundle of its superstores and other peripheral business units to Bain Capital for some $5.5 billion in March.

"Carve-outs of operating companies' non-core assets will continue to be a trend in the near term," said senior deputy head of M&A advisory at SMBC Nikko Securities, Yusuke Ishimaru.

Bankers say there is a strong pipeline of potential deals involving private equity firms.

Potential deals to be announced in the second half include an acquisition of Japanese cybersecurity firm Trend Micro which has a market value of 1.32 trillion yen ($8.54 billion).

Bidders included Bain Capital and EQT, Reuters reported earlier this year.
"Private equity funds are also seen as promising buyers for taking listed companies private," Ishimaru said.
 
 

Nissan Motor Co. plans to make large-scale production cuts at its key Oppama plant in Yokosuka, Kanagawa Prefecture, in July and August, according to sources.

The move was prompted by sluggish sales of the Nissan Note, a compact car produced at the factory, the sources said. Nissan reportedly plans to reduce production at the plant by nearly 50%, and the production capacity utilization ratio could fall to around 20%.

The Oppama plant is one of seven domestic and overseas factories that Nissan is considering closing. The difficulties facing the plant are becoming pronounced.

During the cutback period, employees at the plant will be engaged in tasks such as maintenance of production lines. Nissan does not plan any layoffs.

The Oppama plant began operations in 1961 as Nissan’s “mother plant” for establishing production technologies. With an annual production capacity of 240,000 units, the plant began producing the Leaf, the world’s first mass-produced electric vehicle, in 2010, and produced five models through 2019.

However, the plant has been downsized partly due to aging facilities. The production of Leaf vehicles was relocated to the Nissan Tochigi plant in Tochigi Prefecture, and only the Note and its derivatives are currently produced at the Oppama plant.

In 2024, the Oppama plant produced approximately 100,000 units and its capacity utilization rate stood at only 40%, far below the break-even point of 70% to 80%.

Sales of the Note were approximately 8,000 units per month from fiscal 2021 to fiscal 2024. Only 4,470 units sold in April 2025, down 25% from the same month last year.

Since there has not been a full model change in the Note since the end of 2020, it has been losing ground to vehicles by other carmakers and stocks of unsold Note cars have accumulated, making it inevitable for the automaker to sharply cut back production.

Nissan reported a consolidated net loss of ¥670.8 billion for the fiscal year ending March 31, 2025. In May, the automaker announced a plan to close seven of its 17 finished-car plants in Japan and overseas by fiscal 2027 in an effort to restructure its business.

In Japan, Nissan is making arrangements to close its Oppama plant and the Shonan plant in Hiratsuka, also in the prefecture, of its subsidiary Nissan Shatai Co. Overseas, the automaker is considering terminating vehicle production in South Africa, India and Argentina and closing two plants in Mexico.

Nissan’s global production capacity stands at 5 million units a year. However, the automaker produced 3.1 million units in fiscal 2024, and the capacity utilization rate has been sluggish at 60%.

Under these circumstances, Nissan plans to consolidate its finished vehicle plants in Japan and overseas by fiscal 2027 to reduce its annual global production capacity, excluding China, to 2.5 million units. It also seeks to increase the capacity utilization rate of the remaining 10 plants to nearly 100%.
 
 

The European Union on Friday proposed making all eel species, including the Japanese eel, subject to regulation under an international treaty to protect endangered species, while Japan opposes the move.

The EU, along with the Dominican Republic, Panama and Honduras, submitted the proposal to the secretariat of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, or CITES.

The proposal is aimed at putting fry, full-grown eels and processed eel products of all 18 species under regulation.

CITES, also known as the Washington convention, lists animals and plants requiring protection in annexes on three levels depending on the degree of regulation. The EU and others seek to add all eel species to the second level.

The proposal will be discussed at a conference of the parties to the pact to be held in Uzbekistan from November to December.

If the proposal is approved, exporters will be obliged to issue permits based on scientific assessments, putting eels and processed products under stricter trade control.

Japan, where eels are prized food, opposes the proposal. A Fisheries Agency official has said, “There is no risk of eels becoming extinct due to international trade.”

On Friday, agriculture minister Shinjiro Koizumi voiced deep regret over the situation, adding that his country will do everything it can to block the adoption of the proposal in cooperation with China and South Korea.
 
 

Private-sector rice imports to Japan are soaring as domestic rice prices remain high, apparently for use in "bento" boxed meals and household consumption.

According to trade statistics released by the Finance Ministry on Friday, 10,607 tons of rice was imported by private-sector companies in May, about 125 times the monthly average for last year.

"If we leave the surging rice prices as they are, (rice imports) may grow further," agriculture minister Shinjiro Koizumi said Friday.

The government imports an annual 770,000 tons of rice free of tariffs under its minimum market access obligation agreed with trading partners.

Meanwhile, private companies can import rice if they pay a tariff of 341 yen per kilogram.
 
 

Toyota Motor Corp said Friday its global sales for May rose 6.9 percent from a year earlier to 898,721 units, a record high for the month, due to last-minute demand in the United States amid concerns over possible price hikes due to high tariffs imposed by U.S. President Donald Trump.

Meanwhile, global production dipped 0.7 percent to 806,677 units, falling below the same period the previous year for the first time in five months.

The United States raised the tariff rate on imported passenger vehicles by 25 percentage points to 27.5 percent in early April, with Tokyo and Washington holding multiple rounds of talks to negotiate an agreement.

By region, sales in the United States grew 10.9 percent to 240,176 units. Those in China were up 6.8 percent to 149,887 units, with hybrid vehicles especially sought after due to government subsidies.

Domestic sales climbed 4.4 percent to 106,586 units on a rebound from the previous year when Toyota was hit by a verification scandal. The launch of new models including the Land Cruiser 250 series also helped lift sales in the country.

The automaker said production in the United States dropped 1.8 percent to 120,539 units due to one fewer working day. Domestic output fell 5.4 percent to 241,570 units.

Honda Motor Co, the country's second-biggest automaker, also benefited from greater demand in the United States in May, with sales up 6.5 percent from the previous year to 135,432 units.

But globally, sales slumped by 4.1 percent to 298,167 units, with those in China logging its 16th consecutive monthly decline on fierce price competition.

Meanwhile, Nissan Motor Co, which is struggling to turn around its business and undergoing restructuring, saw global output decline 16.5 percent to 229,645 units and global sales slip 6.0 percent to 256,159 units.

The company earlier this week said it forecasts a net loss of 200 billion yen for the April-June period, weighed down by effects of the U.S. tariffs.
 
 

Asian shares were mixed on Friday, losing some of their morning gains, after U.S. stocks ran to the brink of another record. U.S. futures and oil prices also logged modest gains.

Investors were watching for further details after President Donald Trump said the U.S. and China had signed a trade deal. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that the deal was signed two days ago, but he gave no details, saying “The president likes to close these deals himself.”

China's Commerce Ministry said Friday that the two sides had “further confirmed the details of the framework.” But its statement was vague, not explicitly mentioning an agreement to ensure U.S. access to rare earths, materials used in high-tech applications that have been at the center of negotiations.

“China will approve the export applications of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly. It is hoped that the United States and China will meet each other halfway,” it said.

Worries about Trump’s higher tariffs have receded since the president shocked the world in April with stiff proposed levies, but they have not disappeared. The wait is still on to see how big the tariffs will ultimately be, how much they will hurt the economy and how much they will push up inflation.

Hong Kong’s Hang Seng index lost 0.3% to 24,250.77, while the Shanghai Composite index gave up 0.7% to 3,424.23 after China reported that industrial profits slid 9.1% in May, the sharpest drop since last October.

“Beijing may have paused the worst of the trade fight with Washington, but the tariff scars are showing—and unless demand picks up or pricing stabilizes, the pressure on margins and business sentiment will linger,” Stephen Innes, Managing Partner at SPI Asset Management, said in a commentary.

Tokyo’s Nikkei 225 index 1.4% to 40,150.79 as the government reported that consumer prices eased slightly in May.

South Korea’s KOSPI Composite Index fell 0.8% to 3,055.94, while Australia’s S&P/ASX 200 shed 0.4% at 8,514.20.

Markets have settled somewhat after the upheavals of the Israel-Iran war and its aftermath.

 

On Thursday, the S&P 500 climbed 0.8% to 6,141.02 and was sitting just 0.05% below its all-time closing high set in February.

It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump’s tariffs.

The Dow Jones Industrial Average rallied 0.9% to 43,386.84, and the Nasdaq composite gained 1% to 20,167.91.

Reports Thursday added to evidence the U.S. economy is holding up despite higher tariffs and other challenges, though it has slowed. Orders for washing machines and other manufactured goods that last at least three years grew by more last month than economists expected. Another report said fewer U.S. workers filed for unemployment benefits last week, a potential signal of fewer layoffs.

A third report said the U.S. economy shrank by more during the first three months of 2025 than earlier estimated. But many economists say those numbers were distorted by a surge in imports as companies tried to get ahead of tariffs. 

 

They’re expecting a better performance in upcoming months.
Following the reports, Treasury yields swiveled up and down in the bond market before easing.

The yield on the 10-year Treasury fell to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, fell to 3.71% from 3.74% late Wednesday.

Analysts said yields may have felt pressure because of a report from The Wall Street Journal saying Trump could name his nominee to replace Fed Chair Jerome Powell unusually early, in an attempt to undermine him.

That could hurt confidence among investors about the Fed’s capability to make unpopular decisions when it comes to fighting inflation.

In other dealings on Friday, the U.S. benchmark crude gained 32 cents to $65.56 per barrel. Brent crude, the international standard, added 34 cents to $67.03 per barrel.

The U.S. dollar rose to 144.50 Japanese yen from 144.40 yen. The euro edged higher to $1.1715 from $1.1703.
 
 

The average monthly salary in Tokyo is about half of those in New York, according to a report released by the Deutsche Bank Research Institute.

The report notes that while the U.S. economy has grown, Japan’s monthly salaries have dropped to the global average following events such as the collapse of its bubble economy.

A comparison was made of after-tax monthly salaries in 69 major cities worldwide, with the salaries were converted to U.S. dollars.

The report indicates that the average monthly salary in Tokyo is $2,592 (about ¥370,000), ranking 38 among the surveyed cities. This figure is nearly 50% lower than New York’s monthly salary of $5,128 (about ¥740,000), which ranks seventh.
 
 

Nissan Motor Co on Tuesday said it forecasts a net loss of 200 billion yen for the April-June quarter and apologized for the worsening performance as it faced criticism from shareholders at their annual meeting.

New President and CEO Ivan Espinosa, who took over from Makoto Uchida in April, vowed to return the business to profitability by fiscal 2026 after apologizing for the poor outlook, encumbered by high auto tariffs imposed by U.S. President Donald Trump.

He reiterated restructuring plans that include shuttering seven factories and cutting 20,000 jobs, saying that the company would release the information on which factories would be affected swiftly once decided.

Nissan has been grappling with poor sales in the United States and China, logging a net loss of 670.90 billion yen for fiscal 2024, which ended at the end of March. It initially did not issue an earnings forecast for the current fiscal year.

With Uchida also present at the meeting, shareholders repeatedly questioned his responsibility and expressed indignation at the lack of dividends in contrast to massive payouts to four former executives, including Uchida, for leaving top roles. However, Uchida declined to respond.

"Many demanded answers from Uchida and asked what the point of his attendance was if he was refusing to answer any questions," said Tsuyoshi Maruki, CEO of Strategic Capital Inc, an activist investor.

But he expressed high expectations for Espinosa, noting that he had a calm demeanor despite the tumult of the shareholders meeting, adding, "We'll just have to anticipate good results from now on."

In addition to the job cut and plant closures, Nissan is also reportedly planning to sell its headquarters building in Yokohama to help cover costs.
"I was not convinced by their explanation.

The management was avoiding responsibility," said a 76-year-old shareholder who has driven Nissan vehicles for around 50 years. "They were just putting it all on the workers and firing them."

Nissan and Honda Motor Co revealed in December plans to begin merger talks under a holding company, aiming to share the financial burden of developing electric vehicles and software to better compete with global rivals, but the talks broke down less than two months later.

However, the two automakers, along with Mitsubishi Motors Corp, have continued discussions regarding a possible collaboration on the electrification of automobiles, among other areas.
 
 

Thirty major industry associations in manufacturing sectors such as steel, electronics and textiles established a cross-industry human resources management organization to secure more highly skilled foreign workers to work in Japan.

About 7,000 companies will join the Japan Association for Human Resources in Industrial Product Manufacturing (JAIM), which will require each member company to provide a 1.5%-3% year-on-year pay raise for those who work under the specified skilled workers status.

The Economy, Trade and Industry Ministry on Wednesday recognized JAIM as a registered entity to support acceptance of the highly skilled, long-term workers.

JAIM includes 30 major manufacturing-related organizations such as the Japan Iron and Steel Federation, the Japan Electronics and Information Technology Industries Association and the Japan Textile Federation.

A similar organization has already been established in the construction industry, but JAIM, the second such organization, covers a wider range of industries.

The specified skilled workers system was launched in 2019, with 280,000 foreign nationals working under the system as of fiscal 2024. Of these, 45,000 are in the manufacturing industry, and the number is expected to quadruple from the current figure to up to 170,000 in fiscal 2028.

Many of the JAIM member firms face severe labor shortages and aim to retain workers by raising wages. Specifically, a minimum year-on-year salary growth rate per foreign worker will be set at 3% for large companies and 1.5% for small and midsized companies. JAIM will verify the employers’ performance annually through documents, and companies that fail to meet the standards will be required to raise wages the following year.

If firms do not adhere to the guidelines, they will be expelled from the association and will no longer be able to hire the specified skilled workers.

The government plans to abolish by fiscal 2027 the technical intern training program, which caused such problems as long working hours and unpaid wages.

Instead, the Employment for Skill Development Program will be established to create a favorable working environment for foreign workers and encourage their transition of residential status to specified skilled workers.
 
 

Japan's Nippon Yusen and Mitsui O.S.K. Lines said on Monday they have instructed their vessels to minimize the time spent in the Gulf as they continue to transit the Strait of Hormuz following the U.S. strikes on Iranian nuclear facilities.

The shipping companies said they are closely monitoring the situation and sharing updates with ships operating in the region.

"We are instructing our vessels to shorten their time in the Persian Gulf whenever possible, depending on their schedules," a Nippon Yusen spokesperson said.

"We will make decisions on each vessel's passage through the Strait of Hormuz on a flexible basis," he added.

MOL's safety operation support center in Tokyo has stepped up 24-hour surveillance, a company spokesperson said.

 

"We are advising vessels operating in the area to exercise maximum caution and providing them with latest information," he said, adding that their vessels have also been instructed to minimize the time in the Gulf.

President Donald Trump said the U.S. had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of the conflict in the Middle East as Tehran vowed to defend itself.

Iran's Supreme National Security Council must make the final decision on whether to close the Strait of Hormuz, Iran's Press TV said on Sunday, after parliament was reported to have backed the measure.

Iran has long used the threat of closing the Strait, through which around 20% of global oil and gas demand flows, as a way to ward off Western pressure which is now at its peak following the U.S. strikes.
 
 

Japan’s biggest banks are considering evacuating employees and their families from financial hubs in the Middle East, just days after U.S. airstrikes on Iran increased risks in the region.

Mitsubishi UFJ Financial Group has started to pull the families of staff out of locations including Dubai, and will consider evacuating workers if they need to accompany them, a spokesperson said Monday. Japan's biggest bank has also halted unnecessary travel in and out of the region, it said.

After the United States on Saturday launched attacks on nuclear facilities in Iran, Japanese companies are rushing to protect their employees and brace local operations for the fallout from any potential retaliation by the Islamic Republic.

Mizuho Financial Group said it urged employees in the region to exercise caution, and has started to coordinate individual evacuations. Sumitomo Mitsui Financial Group is looking to bring its staff from locations including Qatar and the United Arab Emirates back to Japan.

In the UAE, the twin hubs of Dubai and Abu Dhabi have lured banks and hedge funds as traders embrace zero income taxes, a time zone conducive to working with both East and West and a lifestyle tailor-made for the rich.

Saudi Arabia and Qatar, meanwhile, have also been attracting financial firms in an attempt to diversify away from oil.

MS&AD Insurance Group also said it’s looking to temporarily recall employees in both UAE cities back to Japan.

Trading company Marubeni said it has suspended business trips to the Middle East and began evacuating family members of employees in certain countries.

Japan Airlines plans to reroute direct flights between Tokyo’s Haneda Airport and Doha Airport to avoid airspace above the Persian Gulf and the Gulf of Oman, which adds about 20 minutes of flight time, a spokesperson said Monday.
 
 

The Japanese and Indian governments are arranging for Indian Prime Minister Narendra Modi to visit Japan in late August for talks with Prime Minister Shigeru Ishiba, diplomatic sources said Saturday.

The two leaders are expected to agree on India's adoption of a next-generation shinkansen bullet train being developed by East Japan Railway Co. for a high-speed rail project underway in western India, the sources said.

They may also agree to revise the 2008 Joint Declaration on Security Cooperation to expand their security partnership amid China's increasing maritime prowess, they said.

The visit would be Modi's first since May 2023, when he attended the Group of Seven summit in Hiroshima, western Japan.

Modi and Ishiba also aim to strengthen communication ahead of a four-way summit with the United States and Australia under the Quad framework, which New Delhi is set to host in the fall.

The high-speed rail line will connect the western Indian cities of Ahmedabad and Mumbai, covering about 500 kilometers in roughly two hours.

The project is considered a symbol of Japan-India cooperation, as it will use Japan's renowned shinkansen technology.

JR East aims to complete the E10 series carriages in the fall of 2027 at the earliest, with commercial operation starting in fiscal 2030.

In their meeting, Modi and Ishiba are expected to confirm plans to introduce the E10 series in the early 2030s, according to the sources.

Through the revised security declaration, the two sides are expected to agree on strengthening comprehensive cooperation in broader areas, including space and cybersecurity, the sources said.
 
 

A breeze carries murmurs and quiet laughter between the rows of bright green tea leaves that are growing in dappled shade as workers harvest the plants that are destined to become matcha.

The Kokaen tea farm in Toyota, Aichi Prefecture, is just one of the many across Japan that has benefited from the sudden surge in interest in powdered green tea, but the industry is now facing uncertainty caused by U.S. President Donald Trump's tariff salvos.

"Global demand for matcha, especially from the United States is extremely high. If the tariffs are imposed, it is likely to affect sales," said Yoshitaka Noba, the third-generation owner of Kokaen.

Founded by Noba's grandfather Takakichi in 1945, Kokaen is one of the few remaining tea farms in the region better known for hosting Toyota Motor Corp and its factories. Nishio, the neighboring city, is especially known for green tea.

Japanese green tea exports have surged in the past few years, marking a record 36.4 billion yen in 2024, more than triple the value of ten years earlier.

According to the Finance Ministry, the United States took 44.2 percent of those exports, significantly more than Germany which, at 9.2 percent, was second.

Production, however, has lagged behind demand. Some 75,200 tons were grown in 2023, down by more than 20 percent compared to 15 years ago, according to the Japanese Association of Tea Production.

Experts attribute the decrease to myriad reasons, including the country's rapidly declining population.

The Japanese government has been incentivizing farmers to switch from other tea varieties to tencha, a tea leaf typically ground to make matcha, as international demand soars.

While tencha production in 2023 grew to 4,176 tons, more than twice that of 2014, it nonetheless only makes up 5.6 percent of all aracha, or unprocessed tea.

The shift to tencha has been slow as investing in new machinery, including what is required to powder the leaves, can cost hundreds of millions of yen. The process itself is very labor intensive, according to Noba.

"Tea farmers may hesitate to turn to matcha production as it's difficult to ascertain whether this is a temporary fad or whether it will end up sticking around for longer," he said.

Tencha is usually harvested between April and May. Kokaen manages eight farms totaling 1.6 hectares, hiring people to pick leaves from one of its locations spanning less than a hectare, while the remaining farms are harvested using machinery.

"Our business relies heavily on what we produce in this one month," Noba said.

The global popularity has been a boon to the Japanese tea industry, thanks in large part to matcha being a rich source of nutrients, vitamins and amino acids.

"There was a growing interest in health during the coronavirus pandemic, and people turned to matcha as they had an impression of it as being beneficial," said Yukiko Motohara from the Japan Food Product Overseas Promotion Center -- part of the Japan External Trade Organization.

Its popularity has been supplemented by its use in sweets as well, Motohara said.

JFOODO, which specializes in promoting various Japanese foodstuffs including sake and miso, has thrown its weight behind Japanese tea since 2017.

While matcha has been mainly sold in luxury supermarkets in the United States, Motohara believes that its popularity will likely grow as it becomes more widely available.

However, despite the ever-increasing attention from abroad, businesses dependent on exports to the United States have been wary about the potential effects of tariffs on profits as uncertainty mars future decisions. Tea, for example, is currently exempt from import taxes.

In what he has labeled "reciprocal tariffs," Trump unleashed a baseline 10 percent duty for almost all nations in the world and additional, higher country-specific levies for about 60 major trading partners that have trade surpluses with the United States.

The Organization for Economic Cooperation and Development recently cut its global economic growth outlook for 2025.

The tariff hikes have been paused for 90 days until early July to allow for negotiations, with Japan having sent its envoy to Washington multiple times in a bid to reach an agreement.

"Tea is not a necessity, it is considered a luxury item and is therefore influenced by economic conditions. If the U.S. economy suddenly deteriorates, the value of what we produce may also suddenly drop," Noba said.

In order to maintain the ongoing popularity of matcha abroad, JFOODO's Motohara suggests that consumers should focus on the rich history and artisan skills behind producing high-quality Japanese green tea -- tariffs be damned.

Kokaen's Noba agrees, but also hopes the tariff situation can be resolved sooner rather than later.

"Matcha isn't produced in the United States, so those who want the tea will purchase it (from us) regardless of tariffs," Noba said.

"But it would be nice for the levies to be withdrawn, for the world to become one in which we are able to deliver our product as freely as possible to anyone who wants it."
 
 

Japan is heavily exposed to turmoil in the Middle East despite being far away and removed from the hostilities, and the crisis is coming at a time when Japan is vulnerable and in no position to absorb shocks that emanate from the conflict.

According to the Petroleum Association of Japan, about three-quarters of the country's crude oil imports are shipped via the Strait of Hormuz, a choke point between the Persian Gulf and the Gulf of Oman with Iran on one shore.

Iran, which is currently in a military conflict with Israel, has threatened to close the strategic passage.

“A large portion of crude oil and gas is transported through this strait, so any disruption would hinder energy procurement and cause prices to increase sharply," said Yuki Togano, a researcher at the Japan Research Institute.

The price of oil is already up about 10% since the conflict began on June 13 — when Israel started destroying Iran's nuclear capabilities — with Brent crude oil futures now trading at about $77 a barrel.

Tagano said that if the Strait of Hormuz is closed, the price could jump to $140 a barrel. Takahide Kiuchi, executive economist at Nomura Research Institute, wrote in a recent report that the price of crude could climb to around $120 a barrel.

"This time, Iran’s regime might possibly collapse. Blocking the Strait of Hormuz might anger China and Middle Eastern nations, but when facing a situation where the regime itself could collapse, it's natural to put every possible measure on the table,” Togano said.

According to a report by Zero Carbon Analytics, a research group, Japan is the most vulnerable of the large Asian economies to the disruption of petroleum shipments through the Strait of Hormuz due to its high reliance on Middle East oil.

Prime Minister Shigeru Ishiba said on Thursday that the government will implement additional measures from June 26 to prevent gasoline prices from rising above about ¥175 per liter. The average price on Monday was ¥171.2 per liter.

Togano said that although measures to contain price increases are important, Japan needs to strengthen policies, including those related to saving energy, to contain fundamental risks arising from reliance on oil imports from the Middle East.

Japan is already facing a number of significant economic challenges. The trade war with the United States is affecting exports and threatening auto sales, which are important to the Japanese economy.

Inflation is also a problem. It is high and squeezing households, which are struggling to make ends meet as wages fail to keep up with price increases. Rising food prices are particularly worrying.

Japan’s inflation in May was 3.5%, with the price of rice having more than doubled.

If the Middle East conflict continues to push up oil prices, the yen is expected to decline as dollar-buying must increase to pay for energy imports.
Even though the yen is traditionally seen as a safe-haven asset, the dollar seems to be attracting higher demand for those seeking a refuge from turmoil, Tsuyoshi Ueno, an economist at NLI Research Institute, wrote in a report on Thursday.

On Friday, the yen traded at ¥145.3 to the dollar, from about ¥143.5 when the conflict began.

Ueno points out that the yen weakened significantly after Russia invaded Ukraine in February 2022 and oil prices increased.

“If the heightened tensions in the Middle East continue for a long time and oil prices rise and remain high, it will likely become a major factor for the yen’s depreciation.”
 
 

Honda Motor Co President Toshihiro Mibe expressed his eagerness to collaborate with Nissan Motor Co and its alliance partner Mitsubishi Motors Corp during a general shareholders meeting on Thursday, after merger talks with Nissan collapsed earlier this year.

Asked about the likelihood of revisiting a merger with Nissan, which fell through due to disagreements over management structure, Mibe said it was not possible "for the time being."

Honda and Nissan, Japan's second- and third-largest automakers, as well as Mitsubishi Motors have carried on talks regarding a possible collaboration on the electrification of automobiles, among other areas. Honda and Nissan are also considering cooperation in the United States, in the face of U.S. President Donald Trump's aggressive tariff policies.

"We want to secure a leading competitive edge in the industry by maximizing the merits brought on by the collaboration," Mibe was quoted as saying, according to the exchanges at the meeting provided by Honda.

Honda and Nissan revealed in December plans to begin merger talks under a holding company, aiming to share the financial burden of developing electric vehicles and software to better compete with global rivals such as Tesla Inc. of the United States and China's BYD Co. But the talks broke down less than two months later.
 
 

U.S. President Donald Trump's bid to attract investment threatens to undermine the appetite for corporate spending in an ironic twist, with the 18-month saga over Nippon Steel Corp's buyout of United States Steel Corp showing the growing vulnerability of businesses in the U.S. market, according to analysts.

The U.S. administration's earlier blocking of the $14.1 billion takeover deal was clearly driven by political motives and corporate executives will no longer be able to make decisions regarding their U.S. operations based only business criteria, they said.

The wrangling in the high-profile case could lead global companies to think twice about making sizeable investments and acquisitions in the world's largest economy, with many moving to reduce their exposure to the U.S. market.

"I do think many companies are pausing investments and major capital expenditures, not only because of the Nippon-U.S. Steel deal but due to general uncertainty surrounding political and economic dynamics in Washington," said Zack Cooper, senior fellow at the American Enterprise Institute.

Trump had repeatedly rejected Nippon Steel's plan to take full control of U.S. Steel.

But Nippon Steel, the world's fourth-largest steel producer, and U.S. Steel, the 29th largest, said Wednesday following Trump's approval of the buyout plan that they had signed a national security agreement with the U.S. government and finalized the acquisition transaction.

Under the deal, the Japanese steelmaker is obliged to invest $11 billion by 2028 on bolstering the U.S. steelmaker's operations, far more than the previously planned $2.7 billion.

The U.S. government also obtained a golden share allowing it to veto key management decisions, such as when reducing investment, shedding production capacity in the United States or closing plants.

Nippon Steel CEO Eiji Hashimoto told a press conference on Thursday that his company had learned from a year and a half of negotiations with the U.S. government that a flexible management strategy is required.

The top executive said it had been believed that governments should not get involved in business deals.

"But now...governments are strengthening their involvement in economic and business matters through industrial policy," he said.

Hashimoto said while his company's acquisition of U.S. Steel should help the world's largest economy, trade levies will not revive its manufacturing sector.

"I believe President Trump came to the conclusion that it is necessary to utilize our power to revive the U.S. steel industry," Hashimoto said, adding the Japanese steelmaker aims to bolster its U.S. unit's overseas operations as well.

Nippon Steel has concluded a National Security Agreement with the U.S. government, pledging to invest around $11 billion by 2028 in the iconic but struggling company and keep its headquarters in Pittsburgh.

During the news conference, Hashimoto shrugged off the possibility that the security pact will hamper its U.S. business.

Trump's predecessor, Joe Biden, initially blocked the purchase of U.S. Steel on national security grounds, saying the manufacturing icon, based in Pittsburgh, Pennsylvania -- a key battleground state in the 2024 presidential election -- should be "American-owned and American-operated."

Trump also opposed the deal during the presidential race, saying the acquisition of a minority stake in U.S. Steel would not cause any issues, but foreign ownership of the company would not be good psychologically.

He ordered a new review of the deal by the Committee on Foreign Investment in the United States in April with a deadline for Trump to make a final decision initially set for June 5.

"Because predictability is insanely low right now in the United States, Japanese companies are going to cut back the percentage of their business in the country," said Keisuke Hanyuda, the chief executive of Owls Consulting Group.

While rising costs must be dealt with, "The last thing a business wants is to lose predictability," said Hanyuda, a former Japanese trade ministry official in charge of trade talks.

Nippon Steel is betting on firm demand for high-tensile strength steel in the U.S. market, capitalizing on its advanced production technology for high-end steel plates used in products such as electric vehicles.

The United States is one of three growth markets for the Japanese steelmaker, compensating for shrinking domestic demand.

Under Trump, the steel, aluminum, auto and semiconductor sectors have been targeted by specific tariffs driven by political pressures and companies in these industries should consider other markets for growth to hedge their risks, analysts say.

Earlier this month, Trump signed an order doubling the tariffs on steel and aluminum imports to 50 percent.

"I think Japanese companies will have a difficult time purchasing famous American companies in sectors that President Trump prioritizes, such as autos, steel, aluminum, and chipmaking," Cooper at the American Enterprise Institute said, though investment in other sectors may still be viable.

"But any Japanese company that is considering a major deal in the United States should develop a detailed political strategy before announcing a deal, lest they suffer similar roadblocks as Nippon Steel," he said.

The United States remains a lucrative market with high growth potential but some global companies are beginning to reduce their reliance on it after the tariffs imposed by Trump, Hanyuda said.

The European Union and the Association of Southeast Asian Nations, for example, have resumed economic partnership negotiations, while the EU is also looking at Japan, which is part of a trans-Pacific free trade pact that took effect in 2018 without the United States.
 
 

The government’s stockpiled rice can be sold under no-bid contracts to restaurant operators, ready-made meal providers and school and hospital food service businesses, announced Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi on Wednesday.

The businesses are in addition to existing retailers and rice specialist shops of all sizes.

Orders for the rice were to be accepted from 10 a.m. on Friday.
“I’d like to deal with the matter in a way that the stockpiled rice sold under no-bid contracts will reach as far and wide as possible,” Koizumi told reporters on Wednesday.

On June 10, the government decided to additionally release 100,000 tons each of rice harvested in 2020 and 2021 from its stockpile to sell under no-bid contracts.

The government began accepting orders for 120,000 tons of stockpiled rice on June 11. The government has not yet received orders for all the rice.

“It’s still not a situation that we can say [the orders] have suddenly increased by thousands of tons,” Koizumi said. “There is a need [for rice] from various food service businesses, so I suppose this additional release is an option to correspond to that need.”

Koizumi also announced a plan to conduct a survey on rice millers to grasp their rice milling results from 2022 to the present, as well as their spare capacity. The decision was made because of a slow rice distribution flow due to businesses unable to mill the stockpiled rice they purchased.

The survey will be conducted on rice millers with a capacity to mill 500 tons or more. The government will ask them to respond to the survey by next Wednesday.
 
 

The total amount of tax evasion in cases for which Japanese tax authorities filed criminal complaints in fiscal 2024 came to 8.23 billion yen, the National Tax Agency said Wednesday.

The amount fell by around 700 million yen from fiscal 2023, while the number of cases decreased by three to 98.

Japan's tax authorities are stepping up their crackdowns on people not declaring taxes, in addition to those engaging in tax evasion linked to consumption tax and international transactions.

In fiscal 2024, which ended in March this year, the number of criminal complaints on cases in which people were accused of illegally receiving consumption tax refunds reached 17, the highest in a decade. In one case, an alleged tax evader pretended to be an exporter of luxury watches.

According to the National Tax Agency, the number of cases for which taxation bureaus across the country launched investigations came to 151, down by three, while the total number of tax evasion cases including those for which authorities stopped short of filing criminal complaints stood at 150, down by one. Authorities filed criminal complaints for 65.3 pct of cases, down 1.6 pct.
 
 

The Agriculture, Forestry and Fisheries Ministry’s aim is to determine the causes of rice shortages and price hikes.

The agriculture ministry will survey about 70,000 rice-related businesses across Japan to determine the status of their sales and inventory, Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi said Tuesday.

The survey will be the first conducted under the staple food law since rice distribution was substantially liberalized in 2004. The ministry’s aim is to determine the causes of rice shortages and price hikes.

Rice inventory surveys have been conducted on large rice collectors and wholesalers, but the ministry will expand the range to cover a much wider scope.

It will ask the businesses involved to report on their collection of rice for distribution, purchases, sales and inventories as of the end of June.
“Why rice prices have skyrocketed is a matter of national concern.

It is extremely important for us at the ministry to find out the reasons, so that we can win the public’s trust in our agricultural policy,” Koizumi said at a press conference after a Cabinet meeting on Tuesday.

Businesses that provide take-away services, restaurants and food-related retailers are also planned to be part of the survey. The ministry will conduct hearings to compile the findings at the end of July.
 
 

Japan logged a 637.61 billion yen ($4.38 billion) trade deficit in May, with auto-related shipments to the United States plunging, possibly affected by higher tariffs imposed by President Donald Trump, government data showed Wednesday.

The trade balance remained in the red for the second straight month, as overall exports fell 1.7 percent from a year earlier to 8.13 trillion yen, marking the first drop in eight months, weighed down by an 11.1 percent fall in shipments to the United States.

Imports shed 7.7 percent to 8.77 trillion yen, down for the second straight month, reflecting lower prices of crude oil from the United Arab Emirates and coal from Australia, the Finance Ministry said in a preliminary report.

By region, Japan had a 451.7 billion yen trade surplus with the United States, down 4.7 percent from the previous year, as exports dropped for the second consecutive month to 1.51 trillion yen, while imports fell 13.5 percent to 1.06 trillion yen.

U.S.-bound shipments of automobiles tumbled 24.7 percent and those of auto parts plunged 19.0 percent, both in value terms. In volume, shipments of automobiles fell 3.9 percent, showing that export unit prices declined by over 20 percent.

The Trump administration imposed a 25 percent tariff on imported vehicles in April as well as on auto parts in May, in a move set to deal a blow to Japan's mainstay auto sector, which sees the United States as a key market.

A ministry official said the latest data could have reflected moves by Japanese automakers to increase shipments of lower-priced models or cut export prices of their products in response to heavier tariffs.

"I believe the effects of the tariffs are gradually emerging, as car exports also declined in volume terms," said Takafumi Fujita, an economist at the Meiji Yasuda Research Institute.

Fujita said auto exports are likely to remain weak due to the uncertain outlook of Japan-U.S. tariff negotiations and they could negatively affect the Japanese economy, given the significant role of the industry.

With China, Japan remained in the red for the 50th consecutive month, logging a deficit of 624.87 billion yen in the reporting month, expanding 17.2 percent from the year before. Exports to the country shed 8.8 percent to 1.44 trillion yen and imports fell 2.2 percent to 2.07 trillion yen.

Japan's trade surplus with the rest of Asia, including China, ballooned more than 12-fold to 313.35 billion yen.

A deficit of 308.9 billion yen was recorded with the European Union, remaining in the red for 16th consecutive month.
 
 

Vietnam and Thailand, which are among the world’s top three rice exporters, are expecting an increase in their exports of rice to Japan.

In both countries, production of japonica rice, which is the same short-grain variety as that produced in Japan, has been expanding amid a boom in washoku Japanese cuisine.

The countries aim to turn the surging rice prices in Japan into a business opportunity.

In a supermarket in Bangkok that is part of the Tops group, a major retail chain in Thailand, five-kilogram packs of japonica rice produced in the country were sold for 275 baht (about ¥1,200).

The price is much lower than that in Japan. In other Japanese supermarkets in Thailand, Sasanishiki and other Japanese-brand rice, harvested in Thailand, were being sold at similar prices.

The climate in Thailand is warm all year round and thus rice can thrive there. Though the main variety grown is indica long-grain rice, recently an increasing number of farmers have begun growing the japonica variety.

A 44-year-old farmer who has grown the Koshihikari brand of rice from Japan for a year said that he can sell japonica rice at double the price of Thailand’s indica rice and his profit margin is high. In his rice paddies, it is possible to harvest rice three times a year, he said.

The export value of rice from Thailand to Japan in 2024 increased 1.3-fold from 10 years ago to $183 million (about ¥26.5 billion). Currently, most of the exports are indica rice and it is assumed that much of the production of japonica rice is for Thailand’s domestic market.

The Thai government is paying attention to Japan’s rice market situation. Thai Commerce Minister Pichai Naripthaphan said that the Thai government wants to exploit a market where Thai rice can be sold at high prices and increase rice exports.

According to an estimate announced by the U.S. Agriculture Department in May, the total amount of global rice exports in fiscal 2024 was 61.4 million tons. By export volume, India was ranked top with a share of about 40%, followed by Vietnam at 13% and Thailand at 11%.

On June 5, the Vietnam Rice Industry Association (VIETRISA) exported for the first time 500 tons of rice of a new brand, “Low-emission Green Vietnamese Rice” of the japonica variety. Its selling point is that greenhouse gases emitted during its growth can be reduced.

The new brand of rice was cultivated with an eye on sales in Japan, where consumers are environmentally conscious and quality standards are strict.

VIETRISA Chairman Bui Ba Bong said that Japan’s current rice shortage is a good opportunity for Vietnam-made rice to enter the high-end market. VIETRISA aims to continuously supply rice to the Japanese market.

When Japan imports rice, a tariff of ¥341 per kilogram is imposed on amounts exceeding a tariff-free quota called “minimum access.”

But Japanese companies, mainly trading firms, have increased rice imports because the prices are lower than domestically produced rice even after the tariff is added.

The volume of rice exported from Taiwan to Japan reached 7,759 tons between January and May, up more than six-fold from the corresponding period last year. Taiwan-produced rice is similar in taste and growing techniques to Japan-produced rice.

Going forward, it is possible that rice imports from Southeast Asia will also increase.

However, if price gaps between imported rice and domestically grown rice widen, it may negatively impact Japanese rice farmers. The possibility will likely stir up controversy.
 
 

Indonesian business actors inked memorandums of understanding (MoUs) worth US$200.8 million with their Japanese counterparts during the Indonesia-Japan Business Forum in Osaka, Japan, earlier this week.

Deputy Minister of Trade Dyah Roro Esti said that her ministry was committed to supporting the stakeholders, including small and medium enterprises (SMEs), at the forum, which was among the series of activities joined by the Indonesian trade mission to Japan.

“Collaboration between the two countries as trading partners is expected to be stronger and mutually beneficial,” she said in a statement issued on Friday.

A total of 13 collaborations, including in paper products, wood pellets, seafood, chocolate, rattan decoration, wooden furniture, coffee beans, charcoal, labor, and biomass business development, were agreed upon at the business forum on Wednesday.

On that occasion, Esti outlined Indonesia’s strategic position as the largest country in Southeast Asia and its position as a major trade and investment partner.

According to the deputy minister, Indonesia has shown strong economic resilience, growing 4.87 percent in the first quarter of 2025. It recorded a gross domestic product (GDP) of US$4.9 thousand per capita per year in 2024, she highlighted.

In addition, Indonesia experienced a significant increase of 20.8 percent in investment realization in 2024, compared to the previous year.

According to Esti, bilateral trade relations between Indonesia and Japan have the potential to open up large market opportunities in several prominent sectors.

Indonesia’s non-oil and gas exports to Japan have recorded a positive growth of 8.8 percent in the last five years (2020–2024).

In 2024, exports to Japan were dominated by coal, which accounted for 15.8 percent of Indonesia’s total global exports; nickel, 5.52 percent; and electrical conductors, 4.07 percent.

Meanwhile, Indonesia’s non-oil and gas imports from Japan showed a positive growth of 8.21 percent during the same period, she informed.

Indonesia’s main imports from Japan were metal products (3.03 percent), motor vehicles (2.9 percent), and copper (2.81 percent).

The deputy minister met with several parties in Japan as part of the trade mission, including the Japanese Ministry of Economy, Trade, and Industry, Japan-Indonesia Association (JAPINDA), ASEAN-Japan Center (AJC), and the Chamber of Commerce and Industry (CCI) Japan.

The Indonesia-Japan Business Forum also helped the Ministry of Trade promote the Indonesian Pavilion at Expo 2025 Osaka.

Themed “Strengthening Synergy: Unlocking Indonesia-Japan Economic Partnership Agreement for Sustainable Trade in New Economy Era,” the forum featured 27 Indonesian exporters.

They belonged to various sectors, such as renewable energy, sustainable fashion, building materials, and food and beverage products.
 

East Japan Railway Co. (JR East) will launch a new overnight express train in the spring of 2027, connecting the Tokyo metropolitan area and the northern part of the Tohoku region, the company said Tuesday.

JR East aims to create an enjoyable travel experience by providing all passengers with their own private compartments.

A 10-car express train currently used on the JR Joban Line will be converted into the overnight train, and one of the cars will be made into a dining car. The train will have compartments to accommodate one, two or four people will be able to carry about 120 passengers. The seats in some of the compartments will be able to be converted into sleeping spaces.

The exterior of the sleeper train will be mostly blue, reminiscent of Japan’s long-distance trains of the past that were nicknamed “Blue Trains.”
JR East will change the train’s destination depending on the season and the schedule will be decided at a later date.

According to the company, there will be two classes of compartments, and an upper-class compartment will be more expensive than Grand Class premier seats on the Tohoku Shinkansen train.

“We hope this train will be able to provide passengers with an enjoyable overnight travel experience, so that riding the train itself will be the purpose of their trips,” said President Yoichi Kise during Tuesday’s press conference.
 
 

Bento, boxed lunches, are practically a symbol of Japanese cuisine itself. A self-contained meal of rice and a number of meat, fish, or vegetable side dishes, they’re a quick and convenient way to get a balanced meal, easily portable back to your office or home, and their packaging means you can even set the box down on your lap and eat it on a park bench if you don’t have access to a table or desk when you’re hungry.

However, these are tough times for bento shops. According to business research organization Teikoku Databank, 22 bento shops filed for bankruptcy between January and May of this year.

Not only is that more than the same period for 2024, if this pace keeps up for the rest of the year it’ll be the highest annual number of bento shop bankruptcies Teikoku Databank, whose figures go back to 2010, has ever observed.

So what’s causing this? The researchers offer a few different explanations. Large orders of premium-priced bento for events such as business meetings, weddings, and funerals are down, but that’s really more of a gradual societal trend away from serving fancy bento at such gatherings.

People working from home also means less demand from office workers buying bento as an alternative to waiting for a seat at crowded business district restaurants during the lunch rush, but that wouldn’t explain why we’re seeing more bento shop bankruptcies in 2025 than we did during the pandemic, when even more people were teleworking.

So really, it would seem that the biggest factor that Teikoku Databank mentions is rising costs for ingredients, especially rice. While bento can have all sorts of different side dishes, rice is the one common element they all have. If you’ve got no rice, you’ve got no bento, and with Japan currently grappling with the most sudden rice price increases in a generation, it’s having a major effect on bento bottom lines.

What makes the situation especially difficult is that even though bento are widely liked in Japan, most of them aren’t necessarily loved. While special regional bento, sometimes with higher price tags, are popular with travelers as a novelty or special-occasion meal, when it comes to ordinary, everyday bento, you won’t find nearly as many passionate fans as you will for things like ramen or beef bowls.

Convenience and affordability are often the bigger parts of bento’s appeal for would-be regular customers, so passing on increased ingredient costs as higher bento prices can erode demand, since there might not be such strong loyalty to how the food tastes, even if it does taste pretty good.

That’s putting bento shops in a situation similar to the one being faced by Japan’s biggest curry rice restaurant chain. Their food hasn’t traditionally been seen as a premium product, so if they raise their prices very much a significant number of customers are likely to say “Eh, in that case I’ll pass,” but keeping their prices low is making it difficult for many bento shops to make a profit.

That doesn’t mean it’s bad news all around for bento shops, however. According to Teikoku Databank’s researchers, 45 percent of bento shops had an increase to their profits in 2024. However, 30.2 percent saw their profits shrink, and 21.7 percent were operating in the red.

Contributing to this feast-or-famine status is that larger bento shop chains are in a better position to manage their inventories to reduce losses from unsold bento or diversify their sales networks to tap into more pools of demand.

Those are more difficult for smaller local bento shops to do, though, and so they’re the ones who’re facing the most danger in Japan’s new dining landscape.
 
 

Toyota Motor Corp has proposed to the government that it sell U.S.-made cars in Japan through its domestic dealership network, the company said in an online video.

The proposal is intended to support Japan's trade negotiations with the United States over President Donald Trump's tariffs. Observers said increased imports of U.S.-made cars could help narrow the large U.S. trade deficit, a source of frustration for Trump.

According to a video released on Monday, Chairman Akio Toyoda informed Prime Minister Shigeru Ishiba during their May meeting that Toyota would be able to sell vehicles manufactured by U.S. automakers through its network of over 4,000 stores in Japan.

The video also revealed Toyoda's willingness to consider reimporting U.S.-produced automobiles to Japan as an option.

Under Trump's so-called reciprocal tariff regime, announced on April 2, nearly every nation in the world has been hit with a baseline duty of 10 percent, with Japan facing an additional country-specific tariff of 14 percent for a total rate of 24 percent.

Japan, meanwhile, has been affected by Trump's extra 25 percent tariff on automobiles, along with other sector-specific levies imposed on national security grounds. Tokyo presented a package of proposals to Washington to reach a deal.

Ryosei Akazawa, Japan's top tariff negotiator known as a close aide to Ishiba, is expected to visit the United States later this week for a sixth round of ministerial-level talks aimed at securing concessions over the series of tariffs.
 
 

The average retail price of regular gasoline in Japan fell to a two-year low of 172.2 yen per liter as of Monday due to lower crude oil prices and government subsidies, the industry ministry said Wednesday.

The ministry said that the average price at the pump was down 2.1 yen from a week before.

All 47 prefectures saw declines in gasoline prices for the third consecutive week. Aichi logged the lowest average, at 165.1 yen, followed by Saitama, at 165.2 yen. The highest average was 182.9 yen in Nagasaki, while the biggest price drop was 3.8 yen in Kagawa.

The government provided refiners with a subsidy of 9.4 yen per liter in the week ending Wednesday to help lower gasoline prices, which will be raised to an upper limit of 10 yen, effective Thursday.
 


 

Curry rice is one of Japan’s favorite things to eat, and its favorite restaurant to eat it at is Cocoichibanya. Also known as Cocoichi, the chain, which was founded in 1978, has over 1,200 branches in Japan, making it the country’s most prominent curry specialty restaurant by far.

But while the taste of Cocoichi’s curry remains as beloved as ever, the chain has experienced a substantial drop in its number of customers, and the reason why appears, pretty clearly, to be its rising prices.

Cocoichi has a semi-customizable menu, in that customers can choose the type and spiciness of roux, amount of rice, and toppings for their curry rice. The prices for all of them, though, have been creeping higher and higher. 

The chain raised its prices twice in 2022, increasing prices for roux/rice and toppings by an average of 5.9 and 3.8 percent, respectively, in June of that year, and then again by 7.4 and 5.4 percent in December.

Customers proved largely willing to eat those increased costs, but another round of price hikes came in August of 2024, raising curry/roux by an average of 10.5 percent and toppings by 13.5 percent, and those seem to be too much for many diners to swallow.

Between September of 2024 and February of 2025, the chain recorded a 5.2-percent drop in its number of total customers, compared to that period in the previous year.

Customer numbers for this fiscal year, which started in March, are even worse so far, with 7.5 percent fewer customers in March and 6 percent fewer customers in April (compared to those months in 2024).
It’s not surprising that Cocoichi has raised its prices. Inflation has been accelerating in Japan over the past year, especially for foodstuffs. 

 

The country is also in the middle of a rice shortage, with prices for the grain having roughly doubled compared to a year ago, and when the price of rice goes up, so too, naturally will the price of curry rice.

However, for generations curry rice has been seen as a hearty but also inexpensive meal in Japanese culinary culture, a favorite of hungry students, hard-working blue-collar employees, and others looking to leave a restaurant with both their stomach and their wallet comfortably full.

To many, curry rice is the sort of thing you should be able to order without being concerned about the cost at all, but with wage increases not keeping pace with rising prices in Japan, and many workers not seeing their wages increase at all, Cocoichi’s repeated price increases seem to have brought its curry rice to a point that an increasing number of prospective customers are balking at.

So how much does a Cocoichi meal cost these days? Again, as mentioned above, there’s a lot of customization that can be done in ordering, all of which affects the price. A basic plate of just rice and roux, though, now costs 646 yen for pork-based curry, and 794 yen for beef-based curry.

Just about everyone, though, adds some sort of meat and/or vegetables as toppings, though, and the average amount spent by a single diner at Cocoichi is now 1,208 yen.

With the smallest denomination of yen bill being the 1,000-yen bill, for many consumers 1,000 yen is a significant tipping point, and while 1,208 yen may not qualify Cocoichi as luxury dining, it also means that, in many people’s minds, it’s no longer an inexpensive meal either.

It’s worth noting that Cocoichi’s customer numbers slipping hasn’t hurt its bottom line, at least not yet, since in 2024 the chain’s operating profits were up 4.5 percent compared to 2023.

However, that figure includes the profits from the first half of 2024, before the latest price increase and subsequent customer losses, and with curry rice’s image as good, honest (and affordable) food, plus Cocoichi’s casual restaurant ambiance, there’s likely a limit to how much success the chain can have chasing a bigger-spending yet numerically smaller clientele.
 
 

Resona Holdings, Inc. will allocate ¥30 billion over three fiscal years starting in April to develop artificial intelligence technologies and foster personnel with digital expertise, President Masahiro Minami said during a recent interview with The Yomiuri Shimbun.

The holding company, whose group includes Resona Bank and Saitama Resona Bank, aims to enhance productivity by introducing generative AI not only to its group’s in-house operations but also its financial products and services for outside parties, Minami said.

Resona Holdings had already announced that it would invest ¥121 billion in the digital field over the three fiscal years through March 2026.

Regarding the ¥30 billion investment, Minami said, “Now is the time that we should make drastic changes in our productivity,” adding, “We’re going to boost these reform.”

Resona Holdings plans to allocate the ¥30 billion to growth investments by excluding costs for system updates and other fixed costs. Generative AI is to be used “as the default” in operations at every group company, Minami said.

Generative AI will also be featured in the group companies’ financial products and services. “We also have to change the customer’s experience [with the group] at the same time,” Minami said.

For the current fiscal year, Resona Holdings has set a goal of increasing its gross profit to over ¥800 billion for the first time in 19 years.

Resona Holdings aims to upgrade its digital services and the loans that its group companies provide to small and midsize firms. For cashless payments, the group currently handles ¥2 trillion mainly through debit cards, but the holding company aims to increase that amount to more than ¥3 trillion as quickly as possible.
 
 

A cattle ranch has commercialized “frozen milk” in Hokkaido, the kingdom of Japan’s dairy products, and is expanding its sales channels.

Though freezing milk typically makes for an unpleasant taste once thawed, making use of flash-freezing technology has been a game-changer.

Freshness and flavor are not lost even after thawing, and the expiration date can be extended to about half a year compared to the one to two weeks when refrigerated.

The cattle ranch plans to export the product to other Asian countries.
“Trustworthiness and branding power of ‘made in Hokkaido’ products are great. I believe there is demand from high-income consumers,” said Toshifumi Suzuki, 43, who keeps about 90 dairy cows in Hiroo, Hokkaido. The town is in the Tokachi area, where dairy farms are prosperous.

Suzuki Farm, where he works, was established by his great-grandfather. When he began working there, the cows were fed enriched feeds made mainly with corn and artificial supplements. However, the cows repeatedly contracted infectious diseases.

In 2010, he changed the ranch’s feeding, believing the cows would be healthier if they were raised in an environment closer to nature. Once switching exclusively to organic grass, the cows became ill less often and the taste of their milk improved drastically.

In summer last year, he was hit with the idea of commercializing frozen milk upon learning about machines that freeze meat and fish extremely quickly to preserve freshness.

The machines are developed by Technican Co., a Yokohama-based freezer manufacturer.

The process involves immersing food containers in a liquid at minus 30 C, freezing it instantly without causing cell breakdown. Surely, Suzuki thought, the same process serving to preserve the freshness of food could be applied to milk?

Usually, thawing milk causes proteins and fats to separate, giving it a rough texture. Therefore, the Tokyo-based Japan Dairy Industry Association does not recommend freezing milk.

However, when Suzuki experimented using the quick-freezing method, it was confirmed that freshness and flavor were not lost even after thawing.

After an evaluation by a third-party inspection body, Suzuki began selling frozen milk with a six-month expiration period in summer last year. A 180-milliliter bottle of the frozen milk is priced at ¥700, including tax.

As it can be enjoyed without worrying about best-by dates, the milk is popular as a thank-you gift under the furusato nozei hometown tax donation system, in which people donate money to local governments of their choice in return for income tax deductions.

Also, since it is unlikely that leftover milk will need to be disposed, some customers buy the frozen milk for dairy product events.

Suzuki Farm plans to begin exporting to Singapore and Thailand in autumn.
“I want people all over the world to know the true taste of milk beyond the barrier of best-by dates,” Suzuki said.

Another cattle ranch in the area sells flash-frozen milk from cows raised exclusively on pasture grass, of which a 180-milliliter bottle is priced at ¥540, including tax.

Miyaji Bokujo ranch in Shimizu, Hokkaido, has shipped its frozen milk to a milk shop in New Chitose Airport and a Fukuoka supermarket.
 
 

The tariffs are "causing daily losses to Japan's economy", said Japanese trade negotiator Ryosei Akazawa after talks with top US officials.

Japan had made some progress in a fifth round of trade talks with United States officials aimed at ending tariffs that are hurting Japan's economy, Tokyo's chief tariff negotiator said.

"Tariffs have already been imposed on autos, auto parts, steel and aluminum, and some of them have doubled to 50 per cent along with 10 per cent general tariff.

These are causing daily losses to Japan's economy," Ryosei Akazawa, said in Washington on Friday (Jun 6) after talks with officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
Akazawa, a minister in charge of economic revitalisation, declined to say what progress they had made.

The latest round of talks may be the last in-person meeting between senior Japanese and US officials before the Group of Seven (G7) leaders summit that starts on Jun 15, where US President Donald Trump is expected to meet Japanese Prime Minister Shigeru Ishiba.
 
Japan also faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with Washington.

"We want an agreement as soon as possible. The G7 summit is on our radar, and if our leaders meet, we want to show what progress has been made," Akazawa said.

"Still we must balance urgency with a need to guard our national interests," he added.

Last month Japan's trade negotiator said US defence equipment purchases, shipbuilding technology collaboration, a revision of automobile import standards and an increase in agricultural imports could be bargaining chips in tariff talks.

In a bid to reach an agreement with the US, Japan is also proposing a mechanism to reduce the auto tariff rate based on how much countries contribute to the US auto industry, the Asahi newspaper reported on Friday.
Akazawa said Japan's position has not changed and that the tariffs are not acceptable.

In a statement on Friday after Akazawa's near two-hour meeting with Lutnick, Japan's Foreign Ministry said that the Japanese minister had "once again strongly urged a reconsideration of the series of tariff measures by the US".

"Both sides reaffirmed each other’s positions regarding US tariff measures, and had a concrete discussion on expanding trade, non-tariff measures, and cooperation on economic security among others," the ministry added.

"They concurred to vigorously continue coordination with the aim of reaching a mutually beneficial agreement."
 
 

Suzuki Motor Corp has halted production of its flagship Swift compact hatchback due to China's export restrictions on rare-earth elements, sources close to the matter said, marking the first suspension by a Japanese automaker tied to the curbs.

The restrictions have caused delays in procuring parts that use rare earths, the sources said.

The Chinese government in April imposed export controls on seven types of rare-earth minerals as part of its retaliation against U.S. tariffs. The move has already begun to disrupt production in the United States and Europe.

Suzuki suspended production of the Swift, excluding the Sport model, at its Sagara plant in Shizuoka Prefecture, on May 26.

While it announced that it would partially resume production from June 13 and fully resume from June 16, it did not disclose the reason for the halt.
 


 

Japan’s Nikkei share average rose on Friday, as a weaker yen lifted sentiment, while concerns about trade tensions eased following a phone call between U.S. President Donald Trump and Chinese President Xi Jinping.

The Nikkei rose 0.5% to 37,741.61 but fell 1% for the week. The broader Topix climbed 0.47% to 2,769.33 while posting a 1.6% weekly loss.

“The trade talks seemed to have ended peacefully and that sent a positive sign to the market,” said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.

On Thursday, Trump held a long-awaited phone call with Xi Jinping, in an effort to resolve trade disputes between the world’s two largest economies that have buffeted the global economy, and agreed to hold further discussions.

But caution ahead of the U.S. non-farm payrolls report, due later in the day, capped gains, Fujiwara said.

The Nikkei got technical support ahead of the fixing of special quotation prices, used to set values on index options and futures, next week, said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.

“Foreigners, who shorted the Nikkei futures, bought them back ahead of the fixing day, which also lifted the Nikkei index.”

The yen, which last traded down 0.3% at 144 per dollar, also supported local equities, Shigetoshi Kamada, general manager at the research department of Tachibana Securities, said.

Chip-related heavyweights Tokyo Electron and Advantest rose 1.28% and 2.23%, respectively.

Automakers gained, with Honda Motor and Nissan Motor adding 1.3% and 1.27%, respectively, while Toyota Motor moved 0.06% higher.

Panasonic Holdings, which supplies batteries for Tesla, lost 2.37% after Tesla shares plunged 14.3%.

ispace tanked 29% to 744 yen, hitting the day’s exchange-allowed floor, after the space venture said that its uncrewed moon lander likely crashed onto the lunar surface during its touchdown attempt.
 
 

 

Two major convenience store chains in Japan began selling government-released stockpiled rice at select stores in Tokyo and Osaka on Thursday, joining major supermarkets and e-commerce platforms in a move to increase availability of the staple food for consumers struggling with soaring rice prices.

The outlets of FamilyMart and Lawson will sell the rice from the 2021 harvest in small portions to make it affordable for people, including those living alone.

While many other retailers sell it in bags of 5 kilograms for about 2,000 yen FamilyMart sets the price of its 1-kg package at 388 yen, and Lawson's is at 389 yen and 756 yen for 2 kg. Both will limit their sales to one package per customer.

Lawson said it will make the rice available at its 13,800 stores nationwide on June 14, excluding those in Okinawa, while Family Mart said it will also expand areas selling them.

"If (FamilyMart) provides the stockpiled rice nationwide, it will help expand access," farm minister Shinjiro Koizumi said as he inspected a Family Mart outlet in Tokyo.

Seven-Eleven Japan also said it will start selling stockpiled rice in some stores, including those in Tokyo and Osaka, on June 17 for 775 yen for 2 kg and gradually expand availability.

The three major convenience store chains secured stockpiled rice through direct contracts as small- to medium-sized distributors after being rejected as major distributors due to a lack of transaction history.

Some retailers that signed contracts as major distributors started selling the rice at the end of May and have already been running out of stock.
 
 

Nintendo Co. released the Nintendo Switch 2, its first video game console in eight years, on Thursday.

Applications had flooded in for lottery pre-orders on the official online Nintendo store and other sites. There are currently no plans to sell the Switch 2 in physical stores and only lottery winners received the console at major mass retailers.

At Bic Camera Inc.’s main store in Toshima Ward, Tokyo, about 30 lottery winners lined up at the doors even before the store’s 10 a.m. opening.

“I’m so happy that it doesn’t feel real,” said a beaming 24-year-old company employee from Toda, Saitama Prefecture. “I can’t wait to play with it when I get home.”

The recommended retail price of the Switch 2’s domestic-only model is ¥49,980, including tax. The new console’s liquid crystal display is larger than the first-generation model, and it comes with a featured game chat function, which enables the user to remotely chat with other players.

Nintendo is intending to sell 15 million Switch 2 consoles worldwide in the first fiscal year. The company has not disclosed how many of the consoles are allocated to Japan.