Domestic shipments of paper and paperboard in 2024 dropped 2.9 pct from the previous year to 19.91 million tons, the lowest in 39 years, the Japan Paper Association said Thursday.

The drop came as newspaper publishers ended evening editions and the trend of reducing paper use in offices continued.

Domestic shipments fell for the third straight year and sank below 20 million tons for the first time since 19.52 million tons in 1985.

Annual shipments had hovered around 30 million tons until 2008 after peaking at 30.53 million tons in 2000.

Demand for printing paper has been declining against the backdrop of Japan's shrinking population. Demand for cardboard and other paperboard temporarily rose during the COVID-19 pandemic, when online shopping was booming, but has been sluggish since then.
 
 

Almost nine out of 10 Japanese companies expect U.S. President Donald Trump's policies to negatively affect business, a Reuters survey showed on Thursday, the clearest sign yet of mounting worry in the United States' top foreign direct investor.

The results of the survey show how the prospect of higher tariffs and increased trade friction between the United States and China has clouded the outlook for companies in the world's fourth-largest economy.

Japan, a firm U.S. ally, is also deeply reliant on China as both a manufacturing base and a key market for its machinery and other exports.

About 86% of respondents said Trump's policy measures would have an adverse or somewhat adverse effect on their business environment, with the remainder expecting a positive or somewhat positive impact.

In the same monthly survey in December, 73% said Trump's second term in the White House would be harmful to their business environment. Trump officially took office last month.

Among the firms that regarded Trump's policy initiatives as negative, 72% picked his trade strategy - including imposing more tariffs - as the most detrimental factor, and 26% chose deepening friction between the United States and China.

"Ratcheting up protectionism has nothing but a negative effect on the global economy," a manager at an information services firm wrote in the survey.

Trump has already announced 25% tariffs on steel and aluminium imports, imposed 10% tariffs on goods from China, and threatened Canada and Mexico with steep tariffs, which are currently on a 30-day hold.

He has also directed his economics team to devise plans for reciprocal tariffs on every country that taxes U.S. imports and to counteract non-tariff barriers.

Japan does not impose tariffs on cars, but the U.S. government said during Trump's first term that a variety of non-tariff barriers impeded access to Japan's automotive market.

On Tuesday, Trump threatened tariffs "in the neighborhood of 25%" on auto imports as soon as April 2.

"If the auto industry took a hit from tariffs worldwide, semiconductor sales may be affected as well," an official at an electronics company said, underlining a potential ripple effect.


DEREGULATION SEEN POSITIVELY

Among the firms that saw Trump's policy measures as positive, 37% picked deregulation and tax cuts as the most beneficial factor, while another 37% chose his policy to help boost fossil fuel production.

Asked about their plans for business operations and investments in the United States, 16% said they were taking a more cautious stance, while 80% said they had no plans for change.

During his first in-person meeting with Japanese Prime Minister Shigeru Ishiba this month, Trump pushed Japan to invest in U.S. energy and technology and sought a way out of a dispute over Nippon Steel's $14.9 billion bid for U.S. Steel.

Trump said Nippon Steel was now looking at an "investment not a purchase", and he was fine with that. Japan's top government spokesperson Yoshimasa Hayashi later said the Japanese steelmaker was considering proposing a bold change in plan from its previous approach of seeking an acquisition.

The survey was conducted by Nikkei Research for Reuters for 11 days to February 14. Nikkei Research reached out to 505 companies and 233 responded on condition of anonymity.



RATE HIKE IMPACT

On the Bank of Japan, 61% of respondents saw its recent rate hike as appropriate, while 25% believed the step was taken too early and 15% regarded it as too late, the survey showed.

The BOJ raised interest rates to 0.5% from 0.25% in January on the view Japan was on the cusp of sustainably achieving its 2% inflation target.

"The yen's excessive weakness caused the continued outflow of national wealth. To arrest the trend, further interest rate hikes are in order," a manager at a wholesaler said.

"That would prompt those companies that cannot survive in a 'world with interest rates', which ought to be a normal state, to bow out or transform themselves."

Asked about the ideal timing for the next rate hike, 24% picked the July-September quarter this year and another 24% selected "next year or later", while yet another 24% indicated that rate hikes were not desirable at any time.

The central bank's hawkish board member Naoki Tamura said this month that the BOJ must raise interest rates to at least 1% by the second half of the fiscal year beginning April.

About 44% of survey respondents said an interest rate increase to 1% would adversely affect their capital spending, while 21% said rate hikes beyond 1.5% would have that effect.

"In parallel with rate hikes, we want the government to expand measures to facilitate capital spending," an official at a rubber manufacturer said.
 
 

Japan and Britain are arranging to hold a ministerial economic dialogue in Tokyo on March 7, government sources said Thursday, amid concerns over U.S. President Donald Trump's protectionist trade policies, including tariffs.

It will be their first such meeting of the economic version of the "two-plus-two" gathering, with Japanese Foreign Minister Takeshi Iwaya and Minister of Economy, Trade and Industry Yoji Muto set to discuss the importance of free trade with their British counterparts, the sources said.

Britain will be the second country with which Japan holds the economic two-plus-two ministerial framework, following the United States, its close security ally.

At the gathering, the two ministers are likely to exchange views on key topics, such as ensuring supply chain stability for critical materials, the sources added.

In November 2024, Japanese Prime Minister Shigeru Ishiba and his British counterpart, Keir Starmer, agreed to launch a new framework to address trade, economic security and other shared challenges between the two countries.

Japan, Britain and Italy have been deepening security cooperation, pursuing joint development of a next-generation fighter jet.
 

 

Japan recorded a trade deficit of 2.76 trillion yen in January, the Finance Ministry reported Wednesday, as worries continue to grow about looming tariffs from the administration of U.S. President Donald Trump.

Japan also had a trade deficit, which measures the value of exports minus imports, a year ago, but the amount rose 60% last month from January 2024.
Exports totaled 7.86 trillion yen last month, up 7% on-year, rising in a variety of products including machinery, medical goods and ships.

Imports, totaling 10.62 trillion yen, rose 16.7% from the same month last year. Imports grew in machinery, computers and various foodstuffs including fruit, as demand grew while the yen weakened against foreign currencies.
Consumption in Japan is expected to remain relatively solid, partly because of recent wage growth.

Japan recorded a nearly 477 billion yen trade surplus with the U.S. as exports rose 8% in items such as electrical equipment, cars and raw materials.

Japan is asking the U.S. to exclude it from Trump’s so-called “reciprocal tariffs,” as well as those on steel and aluminum. Uncertainty remains as the U.S. has long been one of Japan’s most important trading partners.

The growth in both Japanese imports and exports follows a government report earlier in the week that the economy grew faster than expected in the October-December quarter.

“Japanese trade data suggest a modest economic recovery underway in the current quarter. But the jump in exports comes with big caveats, particularly the specter of U.S. tariffs, that cloud the outlook,” said Min Joo Kang, senior economist at ING.
 
 

Financial results for the April-December period for companies listed on the Tokyo Stock Exchange are now in. Many of them reported strong results, helped by an increase in the number of foreign visitors to Japan and the depreciation of the yen.

For their annual financial results ending March, these companies are expected to post their fourth consecutive year of record net profits. However, there is a risk that the tariff policies of U.S. President Donald Trump will impact their future business performance.


Boom for nonmanufacturers

According to a count by SMBC Nikko Securities Inc., the 1,273 companies that make up the TOPIX — excluding financial companies and SoftBank Group Corp. — that had reported earnings as of Friday posted a total net profit of ¥34 trillion in the April-December period, up 5.2% from a year earlier. Of these, nearly 30%, or 348 companies, posted their highest profits ever.

The net profit of nonmanufacturing industries increased by 8%. The number of visitors to Japan in 2024 exceeded the level seen in 2019, before the COVID-19 pandemic, reaching a record high, which benefited department stores and transportation companies.

Isetan Mitsukoshi Holdings Ltd. reported a 70% year-on-year increase in duty-free sales to ¥129.2 billion. Its operating profit, which indicates the company’s core business earnings, reached a record high for the April-December period last year.

East Japan Railway Co. (JR East) saw a 50% increase in operating profit in its hotel business compared to the same period last year due to an increase in the number of tourists visiting Japan. Central Japan Railway Co. (JR Tokai) saw a 2.6-fold increase in transportation revenue from foreign tourists compared to the level seen before the pandemic.

Japan Airlines Co. reported an increase in profits.
“Before the pandemic, domestic flights were more profitable, but now international flights are outperforming them,” Japan Airlines Senior Vice President Masao Yumisaki said at a press conference.

 

AI-driven demand

The total net profit of manufacturing industries increased by 3%. The yen was briefly as strong as ¥139 level per dollar in September last year. Since then, the yen has been on a weakening trend, leading to an increase in manufacturers’ profits.

As global demand for generative artificial intelligence grew, manufacturing output increased, with electrical equipment and machinery businesses performing particularly well.

Advantest Corp. saw a 2.6-fold increase in net profit thanks to strong sales of semiconductor testing equipment for AI.

Hitachi Ltd. revised upward its net profit forecast for the fiscal year ending March 2025 due to growing demand for power grid equipment for data centers.

“There were many positive surprises that exceeded prior forecasts,” said SMBC Nikko Securities’ Hikaru Yasuda.

Automakers and other transportation equipment manufacturers had a tough time in the first half of the fiscal year through September, with net profits down 30% from the same period a year earlier, but they improved in the April-December period, with a 6.2% decrease.

Toyota Motor Corp., where fraudulent testing practices related to model certification came to light, saw sales decline, but recovered from October onwards. The depreciation of the yen contributed to the improvement of operating profit by ¥490 billion.

Concern

The total net profit of companies listed on the Tokyo Stock Exchange for the fiscal year ending March is expected to increase by 0.6% from the previous fiscal year, marking the fourth consecutive year of record highs.

According to the Bank of Japan’s quarterly Short-Term Economic Survey of Enterprises in Japan (Tankan) released in December, companies expect the yen to trade at a weighted average of ¥146.88 per dollar in fiscal 2024. The yen has continued to weaken since then, which is likely to continue to be a tailwind for major manufacturers operating overseas.

Yet, it is unclear how Trump’s tariff policy will play out.
Mitsubishi Electric Corp. supplies air conditioning and automotive equipment from Mexico to the United States.

“Demand may shift to other products produced in the United States, or prices may rise, causing a slump in consumption,” Mitsubishi Electric Chief Financial Officer Kuniaki Masuda said.
 
 

Japanese business leaders including Kosei Shindo, head of the Japan-China Economic Association and adviser to Nippon Steel, met with Chinese Vice Premier He Lifeng in Beijing on Monday.

Shindo is leading a Japanese delegation on a six-day trip to China through Friday, with Masakazu Tokura, chairman of the Japan Business Federation, or Keidanren, and Ken Kobayashi, head of the Japan Chamber of Commerce and Industry, joining as top advisers.

A similar delegation of Japanese business leaders met with Chinese Premier Li Qiang in January 2024. According to the Japan-China Economic Association, business leaders sought to meet with Li on the latest trip as well.

"It's becoming important to deepen dialogue between the governments and companies of both countries," Tokura said at the start of the meeting with He.

The vice premier said that there is a global rise in conservatism and unilateralism, apparently a reference to the additional U.S. tariffs on imports from China implemented by President Donald Trump's administration.

Also on Monday, the Japanese delegation met with a senior official of the National Development and Reform Commission. The delegation is slated to travel to Changsha, the capital of Hunan Province in central China, on Wednesday.

The association has sent a delegation to China almost every year since 1975. Visits were suspended during the COVID-19 pandemic but restarted last year after a three-year break.
 
 

Japan's economic growth slowed sharply last year, official data showed Monday, although the rate for the fourth quarter topped expectations.

The figures come as Japanese companies fret over the impact of U.S. President Donald Trump's protectionist trade policies, including import tariffs, on the world's fourth largest economy.

Gross domestic product expanded 0.1 percent in 2024, well down from 1.5 percent the year before, the data showed.

But the figures for October-December were brighter.
Quarter-on-quarter growth accelerated to 0.7 percent, from 0.4 percent in July-September, when a "megaquake" alert and one of the fiercest typhoons in decades dampened activity.

The fourth-quarter figure was also more than double market expectations of 0.3 percent growth.

"On the surface, Japanese GDP growth in the final stretch of 2024 looks like a turning point," said Stefan Angrick of Moody's Analytics. "But don't break out the champagne just yet. Japan's preliminary GDP figures are notoriously choppy, and sizeable revisions are common.

"The upbeat headline figure masks a domestic economy still stuck in the mud. Consumption is weak as pay gains have trailed inflation for the better part of three years," Angrick said. "And given the worsening outlook for global trade, Japan won't be able to count on exports to pick up the slack in 2025."

Trump said last week that he planned to unveil tariffs on imported cars from around April 2, adding to a cascade of levies he has threatened since taking office.

Ahead of the latest GDP data, the Daiwa Institute of Research said "various growth factors are seen, including normalization of production for motor vehicles".

"A strong appetite for capex spending on the part of corporations, and a comeback for inbound consumption" were also positive factors, the institute said in a report.

This time last year, Germany overtook Japan as the world's third-biggest economy, with India projected to leapfrog both later this decade.

The change in positions primarily reflected the sharp fall in the yen against the dollar, analysts said at the time.

In January, the Bank of Japan raised interest rates again -- having done so in March for the first time in 17 years -- and signaled more hikes to come.

The move, which left borrowing costs at the highest since 2008, was also underpinned by "steadily" rising wages and financial markets being "stable on the whole", the bank said.

Even as other central banks raised borrowing costs in recent years the BoJ had remained an outlier.

But it finally lifted rates above zero in March, signaling a move away from policies designed to counter Japan's "lost decades" of economic stagnation and static or falling prices.

Capital Economics said in a note on Monday that "even though the jump in Q4 GDP wasn't broad-based, it supports our view that the Bank of Japan will tighten policy more aggressively this year than most anticipate".
 
 

Nissan Motor Co is expected to struggle to find a new partner after the breakdown of its planned merger with Honda Motor Co. indicated a lack of urgency by the ailing carmaker about restoring its battered operations.

Some foreign companies, particularly newcomers in the auto industry, may have been considering Nissan as a possible partner but could lose interest after seeing Nissan stick to its management independence, analysts say.

Honda is also expected to face a tough challenge for survival after the collapse of the deal, which would have created the world's third-largest auto group. But it is more serious for Nissan, given the scant progress it has made in its efforts to restructure.

"I wonder if a sense of crisis was really shared by Nissan's management team," said Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory Co. "Their management decision is rather naive."

Behind the failure of the negotiations was Nissan's rejection of a proposal for it to operate under the Honda group, the two companies said Thursday. Under the initial plan, they sought to merge under a holding company.

Honda CEO Toshihiro Mibe said at a press conference Thursday that prolonged talks between the two carmakers would have delayed decisions on merger details and his company had sought to speed things along by making Nissan its subsidiary.

"We thought a stock swap (to make Nissan Honda's unit) was the only way for a successful merger," Mibe said.

When the two carmakers said at a press conference in December that they would begin talks on a merger, Nissan chief executive Makoto Uchida said they would be on equal footing.

But given Honda, Japan's second-largest carmaker by volume, has roughly five times the market capitalization of Nissan, Japan's third-largest, the deal was seen effectively as a bailout of struggling Nissan, analysts say.

"Considering Nissan's low profitability and lower market capitalization, an equal merger was a tall order in the first place," Jin Tang, senior principal researcher at Mizuho Bank, said.

Analysts say Nissan cannot survive by itself without finding a new partner, with Taiwanese electronics giant Foxconn, formally known as Hon Hai Precision Industry Co, emerging as a candidate.

Foxconn has approached Renault SA, which owns Nissan shares as a long-time partner but plans to reduce its stake in the Japanese carmaker, the Taiwanese company's chairman Young Liu told reporters in Taiwan on Wednesday.

Foxconn is looking at cooperation with Nissan, not an acquisition, the chairman said.

Nissan began talks with Honda out of fear that the Taiwanese company may be planning to acquire it, according to the sources.

"We will be aggressive in seeking a new partnership to maximize our corporate value," Nissan's Uchida said at a separate press conference on Thursday after unveiling the decision to abandon the merger plan.

Among other companies, Vietnam's Vingroup, which recently entered the auto market, and some Chinese automakers may be interested in Nissan, analysts say.

As vehicles become more electrified and software-driven, a growing number of firms have entered the auto market such as Sony Group Corp and Chinese smartphone maker Xiaomi.

Nissan plans to cut 9,000 jobs and reduce its global production capacity by 20 percent. But Honda wanted more drastic restructuring steps to ensure Nissan's swift turnaround.

Analysts say Nissan's management team led by CEO Uchida was too slow in launching measures to address its faltering sales in China and the United States, the world's two biggest auto markets.

After the ouster of Carlos Ghosn, a charismatic former Nissan CEO, the carmaker has become more bureaucratic, a source familiar with the company's management said.

"If Nissan cannot put aside its pride and break its back for restructuring, it cannot open a path for its future," Mizuho's Tang said.
 

 

Japan's private rice imports have already reached a record-high 468 tons in the current fiscal year through March, driven by robust demand from restaurants amid soaring prices for the domestic crop, according to government data.

The import volume from April to December last year, the highest since the farm ministry began collecting data in fiscal 2019, was equivalent to about 6.5 million bowls of steamed rice and higher than the 350 to 450 tons annually imported by firms in recent years.

The record figure came despite the imposition by the government of a tariff of 341 yen ($2) per kilogram on privately imported rice, implemented to protect domestic output and prices.

The private imports came on top of the around 770,000 tons of rice imported by the Japanese government, mainly from the United States, China and Thailand, under the minimum access commitment set by the 1993 Uruguay Round agreement on trade in agriculture.

Of the customs-free imports controlled by the government, the up to 100,000 tons per year destined for the private sector for staple food use was sold out for the first time in seven years.

In 2024, rice prices surged 27.7 percent from the previous year, the biggest increase since 1975, reflecting rising production costs and short supply, according to consumer price data. In December alone, prices soared 64.5 percent from a year earlier.

An official of a major Japanese trading house that imports rice said there was strong demand from the restaurant sector, while an official of the Matsuya beef bowl chain operator, which uses imported rice, said stable supply is "absolutely needed."
 
 

 

XRP’s potential partnership with the Bank of Japan for cross-border payments could drastically increase its use in global transactions, leading to higher institutional demand and possibly pushing its price, News.Az reports citing CoinSpeaker.

XRP can rally to 20$ amid Bank of Japan usage of Ripple.
As this development unfolds, PlutoChain ($PLUTO) could also draw attention with its hybrid L2 technology that could upgrade BTC’s ecosystem.
Let’s get into the details.


XRP Price Prediction: Could Bank of Japan’s Partnership Drive XRP to New Highs?

SBI Group’s CEO, Yoshitaka Kitao, a long-time advocate for XRP, says that the token could transform remittances in Japan, especially among the country’s large migrant worker population.

Reports suggest that up to 80% of Japanese banks could integrate XRP, significantly reducing transaction costs and expediting cross-border payments. If fully adopted for remittances and settlements, XRP’s trading volumes and liquidity might surge.

Moreover, if Japan’s lead inspires broader adoption across Asia, increased liquidity demand could propel XRP prices even higher. Crypto analyst Farshad Rouhani predicts that by Q1 2025 XRP’s price will likely drive past $10 after Japanese banks adopt XRP for global payments.


 
PlutoChainHas a New Hybrid  Layer-2 Approach That Could Solve Bitcoin’s Biggest Problems

Bitcoin is often criticized for its slow transaction times, steep fees, and network congestion, which make scaling a frustrating challenge for users.

PlutoChain ($PLUTO) could tackle these issues by operating as a hybrid Layer-2 network alongside Bitcoin’s main blockchain. By offloading traffic to its network, PlutoChain could reduce fees, minimize congestion, and improve overall scalability.

With Bitcoin’s 10-minute block time lagging behind competitors like Ethereum and Solana, PlutoChain may offer a significant improvement — processing blocks in just about 2 seconds on its own Layer-2 network. This might allow faster execution of smart contracts while leveraging Bitcoin’s security.

PlutoChain also brings  Ethereum’s Virtual Machine (EVM) compatibility, enabling Ethereum-based projects to integrate with Bitcoin’s ecosystem. This could open the door for applications like DeFi, NFTs, and even AI-based technologies to thrive on Bitcoin’s network.

In testnet trials, PlutoChain has handled up to 43,200 transactions daily without delays, showing potential for high throughput.
 
Security remains a top priority, with audits from firms such as SolidProof, QuillAudits, and Assure DeFi, alongside regular stress tests to ensure reliability.

The project also prioritizes decentralization through a governance model that allows the community to propose changes and vote on key decisions, giving users a voice in shaping its future.



The Bottom Line

While XRP’s potential integration into Japan’s financial systems could push its price higher, PlutoChain might also capture attention by enabling faster block times, supporting Ethereum-based projects, and reducing congestion.

PlutoChain ($PLUTO) could offer a transformative solution for Bitcoin, potentially addressing its slow transaction speeds and high fees with a hybrid Layer-2 network.
 
 

The pace of gains in Japan’s corporate goods prices accelerated last month to the fastest clip in 19 months, keeping the Bank of Japan on track for further interest rate hikes.

The measure of input prices for Japanese firms rose 4.2% in January from a year earlier, the BOJ reported Thursday. The gain, led by agricultural products such as rice, was bigger than the consensus estimate of 4% and compared with a revised 3.9% advance a month earlier.

The data is likely to support growing market views that the BOJ’s current policy cycle could feature hikes that are faster and culminate in a higher terminal rate than many previously expected.

The shift in thinking has helped spur repricing in the bond market. Japan’s 10-year bond yields continued to rise Thursday, hitting the highest level in almost 15 years.

The BOJ raised its benchmark rate to the highest level in 17 years last month as inflation and the economy continued to perform in line with the expectations of authorities.

In a Bloomberg survey conducted after the January policy gathering, more than half of BOJ watchers said they expect the next hike to come in July. In their risk scenarios, 45% said the action could be taken as early as the board meeting that concludes on May 1.

BOJ Gov. Kazuo Ueda said earlier this week that he will continue to carefully monitor inflation as it’s possible that recent gains in food prices will be sustained.
 
 

Toyota Motor Corp's labor union said Wednesday it has demanded the same level of wage hike as last year's -- the highest increase in over two decades -- as Japan's annual wage negotiations entered full swing in the face of rising living costs.

Toyota's wage request has long served as a bellwether for the shunto spring talks between unions and management. The outcome will be closely watched by Prime Minister Shigeru Ishiba's government as it steps up calls on businesses to increase pay more sharply than price rises.

The Bank of Japan sees sustainable wage hikes as a prerequisite to lift its key policy rate for monetary normalization.

Toyota's union does not disclose specific amounts for its requests regarding monthly salary but said it is seeking annual bonuses equivalent to 7.6 months of pay, also the same as last year.

"We want to discuss how Toyota and the automotive industry as a whole can grow together with others and create the future together," Toyota said in a release after receiving the union's request.

Last year, Toyota's management offered a pay rise that fully met the union's demand, the largest hike since 1999. The monthly pay was raised by up to 28,440 yen.

Among other automakers, Nissan Motor Co's union called for an 18,000 yen increase in monthly pay, the same level as last year's, but it lowered its annual bonus demand to 5.2 months of monthly pay, down 0.6 month, due to poor business performances.

Honda Motor Co.'s union, meanwhile, demanded a 19,500 yen hike in monthly pay.

In other sectors, unions of major steel and heavy machinery manufacturers all demanded a monthly rise of 15,000 yen last Friday.

Japan's biggest union group Rengo, or the Japanese Trade Union Confederation, said earlier its members are targeting a pay increase of 5 percent or more in this year's wage talks.

According to Rengo, its tally of the results of pay negotiations from over 5,000 member unions last year showed Japanese companies agreed to raise wages by an average 5.10 percent, offering a more than 5 percent increase for the first time in 33 years.

Ishiba has called for companies to realize "significant salary hikes" at annual wage negotiations to increase disposable income amid inflation as the country faces rising prices due in part to higher import costs from the weaker yen.

The outcomes of the wage negotiations at most major Japanese companies are expected to be reported on March 12.
 
 

Honda Motor Co. and Nissan Motor Co. officially decided Thursday to withdraw from their merger talks.

The two companies made the decision at their respective board meetings to withdraw from the basic agreement they signed in December on starting talks for integrating their businesses.

They are expected to continue to consider a feasibility study of a partnership mainly in the field of electric vehicles, for which they signed a memorandum in August last year. However, the degree to which such a partnership can produce results without capital ties is unclear.

Honda’s proposal that Nissan become a wholly owned subsidiary was one trigger for the discussions being called off.

In March last year, the two companies signed a memorandum to cooperate on EVs and in other areas.

In August, they announced specific measures for their cooperation, which included the sharing of key EV components and the mutual supply of vehicles, as well as collaboration on the development of next-generation “software-defined vehicles” that can improve their performance through software updates.

After further discussions on their collaboration, the two companies exchanged a basic agreement on the management integration in December. Honda President Toshihiro Mibe said at that time that the integration was “the most rational approach.”

However, Honda floated the possibility of making Nissan a wholly owned subsidiary earlier this year. This led Nissan to object to the business integration.

There still are many issues to be addressed, including whether Nissan, which faces the necessity of restructuring its operations due to poor business performance, will be able to keep up with the pace of the discussions that Honda seeks.
 

 

Japan posted a current account surplus of 29.26 trillion yen in 2024, a record high, driven by its highest-ever returns on foreign investments amid a weak yen and a decline in the trade deficit, government data showed Monday.

The surplus in the current account balance, one of the widest gauges of international trade, grew 29.5 percent from a year earlier, rising for the second consecutive year and marking the highest since comparable data became available in 1985, the Finance Ministry said.

Primary income, which reflects how much Japan earned from overseas investments, climbed 11.3 percent from the year before to 40.21 trillion yen, buoyed by higher returns from offshore subsidiaries in the financial, retail and auto sectors, the ministry said in its preliminary report.

Japan's primary income has been boosted by returns from foreign direct investments by domestic companies and overseas dividend income, with the yen's depreciation inflating their value. The currency averaged 151.48 against the U.S. dollar in 2024, 7.8 percent weaker than a year before.

Goods trade registered a deficit of 3.90 trillion yen, down 40 percent, with exports rising 4.5 percent to 104.87 trillion yen, led by strong demand for semiconductor-making equipment and vehicles.

Imports also increased 1.8 percent to 108.77 trillion yen due to increased shipments of personal computers and nonferrous metals, but growth was capped as the value of coal and energy purchases declined amid falling prices.

The services trade deficit shrank 10.3 percent to 2.62 trillion yen due to an expansion of the travel surplus, which stood at a record 5.90 trillion yen. Some 36.87 million foreign tourists, the most ever, visited Japan in 2024 due partly to a weaker yen.

A surplus in the travel balance means that spending by foreign visitors in Japan exceeded the amount spent by Japan residents overseas.

In December alone, the country logged a 1.08 trillion yen current account surplus, up 17.8 percent from the previous year.
 
 

The nervousness that pervaded Japanese markets on Friday turned briefly to relief after Prime Minister Shigeru Ishiba’s meeting with U.S. President Donald Trump, then back to uncertainty on Monday after the U.S. president flagged tariffs on imports of steel and aluminum.

Trump’s talk of imposing reciprocal tariffs on "everyone” has also provided a stark reminder of the risks that face all of America’s trading partners, including Japan. Yet the amicable atmosphere of their first summit on Friday has the potential to help support Japanese stocks in the medium term, according to investors.

"There had been concerns that Trump may impose tariffs on Japanese cars,” said Daiju Aoki, regional chief investment officer at UBS SuMi Trust Wealth Management in Tokyo.

"There were no tariffs. In terms of the yen, they just confirmed that their finance chiefs would be in close touch. And there were no new demands on Japan’s defense spending. It will be a relief for markets.”

Japan’s 225-issue Nikkei Stock Average traded 0.1% down in early Monday trade, as a boost from the summit was offset by worries about rising U.S. inflation expectations and Trump’s comments that he will announce 25% tariffs on all imports of steel and aluminum.

The latter sent steelmaker shares down, with Nippon Steel falling as much as 2.6%.

Trump also said the Japanese steelmaker cannot own a majority stake in U.S. Steel after the leaders suggested they are working on an alternative plan for the Japanese company to make an investment that stops short of an outright purchase. The $14.1 billion bid for the iconic U.S. firm was blocked by the Biden administration.

With Trump seeking to eliminate his nation’s trade deficit with Japan, Ishiba agreed to buy more American liquefied natural gas (LNG), and revealed plans by Toyota and Isuzu Motors to invest more in the United States.

"The friendly tone and substance of the summit, especially in regard to Japan’s high profile investment in the U.S. steel sector, should provide a modest relief to Japanese investors,” said Homin Lee, senior macro strategist at Lombard Odier in Singapore, adding that the firm is "constructive” on Japanese stocks.

Currency analysts said the yen was likely to show a muted response as it didn’t become a focal point of the conversation, even though its weakness has been one of Trump’s long-held concerns regarding Japan.

A lack of verbal intervention from Trump saw the yen softening 0.2% to ¥151.76 per dollar, though it remained not far from a two-month high of ¥150.93 touched on Friday.

Mari Iwashita, executive economist at Daiwa Securities, said the yen could become a safe haven if markets perceive Trump’s stance on tariff against Japan as less severe than previously thought.

Buying more LNG from the U.S. and investing more there would eventually mean more demand from Japan to buy dollars, said Masayuki Koguchi, executive chief fund manager at Mitsubishi UFJ Asset Management.

Ishiba’s handling of his meeting with Trump has the potential to boost the popularity of the ruling Liberal Democratic Party, said Fumio Matsumoto, chief strategist at Okasan Securities.

At the margin, this may be positive for Japanese stocks ahead of an Upper House election later this year, given that concerns about political instability have weighed on the market since Ishiba lost an outright majority in the Lower House in an election last year.

To be sure, the relief following the Ishiba-Trump meeting hasn’t removed risks, and Japanese markets remain prone to sharp shifts.

"Japan could still be on the receiving end of new tariffs,” said Tim Waterer, chief market analyst at Kohle Capital Markets in Sydney. "This prospect may cap enthusiasm on Japanese markets, at least until we see which countries are next on Trump’s tariff ‘hit list’ and what tariff levels are applied.”
 

 

 

 

Japan‘s Hotel Okura and Indonesia‘s Plataran join forces to blend heritage and luxury, redefining global travel with cultural exchange and unmatched hospitality.

In a groundbreaking move, Japanese hotel operator Hotel Okura Co. and Indonesian hospitality firm Plataran Indonesia have officially joined forces through a strategic alliance signed on February 6.

This partnership aims to redefine luxury hospitality by merging Japanese precision and tradition with Indonesia’s cultural richness and natural beauty. The collaboration is poised to promote cultural exchange, strengthen diplomatic ties, and enhance tourism in both nations.

Described as a “landmark cultural exchange partnership that bridges the rich heritage of Indonesia with the refined traditions of Japan,” this alliance promises a shared commitment to delivering purpose-driven and community-focused hospitality experiences. Here’s a closer look at the objectives, benefits, and vision behind this collaboration.


Focus Areas of the Alliance

The partnership will address multiple key areas to ensure a seamless blend of the strengths of both Hotel Okura and Plataran Indonesia. These areas include:
 

1. Partnership Concept: Bridging Cultures Through Friendship and Diplomacy
   At the heart of this alliance is a commitment to fostering friendship and diplomacy between Indonesia and Japan. The collaboration will enable cultural exchange programs, allowing both countries to share their heritage, traditions, and values with a global audience. By focusing on authentic cultural representation, the two brands will create unique experiences for their guests, reflecting the soul of both nations.
2. Sales and Marketing Cooperation: Expanding Brand Recognition
   Through joint marketing strategies and shared sales networks, the two hospitality giants aim to strengthen their presence in both Indonesia and Japan. This initiative will include collaborative promotions, mutual utilization of membership programs, and participation in international travel expos. By combining their expertise in sales and marketing, the brands hope to broaden their customer base and increase visibility in their respective markets.
3. Product and Service Collaboration: Redefining Excellence in Hospitality
   Plataran Indonesia is known for its customer-centric philosophy and deep respect for local culture, while Hotel Okura is celebrated for its meticulous Japanese-style hospitality. Together, they aim to merge these strengths to enhance guest experiences. Expanded culinary offerings will be a focal point, combining Japanese precision with Indonesian flavors to craft unforgettable dining experiences. Other innovations will include co-developed service standards and amenities to set new benchmarks in luxury hospitality.
4. Joint Brand Development in Indonesia
   As part of this strategic alliance, Hotel Okura and Plataran Indonesia will collaborate on developing a hotel in Indonesia. This joint venture will combine the architectural elegance of Japanese design with the natural and cultural elements of Indonesia, resulting in a property that reflects the best of both worlds. This initiative not only showcases their shared commitment to excellence but also reinforces their dedication to sustainable and community-focused development.
5. Personnel Exchange and Development: Building Cross-Cultural Expertise
   Employee exchange programs will play a significant role in this alliance. Staff from both companies will have the opportunity to work in each other’s countries, gaining firsthand knowledge of diverse cultural practices and hospitality standards. This initiative will enhance the skills of employees, foster mutual understanding, and ensure that both brands deliver consistent quality across their properties.

Impact on Tourism and Hospitality

The collaboration between Hotel Okura and Plataran Indonesia comes at a time when the global tourism industry is recovering from the challenges posed by the pandemic. By joining forces, the two companies aim to attract a broader range of travelers, from leisure tourists to business professionals, who seek authentic, luxurious, and culturally enriching experiences.

Moreover, the partnership aligns with the growing demand for purpose-driven travel, where guests are not only looking for luxury but also want to engage with local communities and contribute to sustainability efforts.

By focusing on cultural exchange, community engagement, and environmental sustainability, the alliance is expected to set new standards for responsible tourism in the Asia-Pacific region.


Cultural Exchange: A Core Pillar of the Partnership

Cultural exchange lies at the core of this alliance. Indonesia, with its diverse traditions, breathtaking landscapes, and warm hospitality, offers an ideal setting for Japanese tourists seeking an exotic yet welcoming destination.

Similarly, Japan’s refined traditions, historic landmarks, and modern cities provide an enriching experience for Indonesian travelers.

Through curated cultural programs, joint events, and educational initiatives, the partnership aims to deepen mutual understanding and appreciation between the people of Indonesia and Japan. Whether it’s through traditional arts, culinary exchanges, or immersive travel experiences, the alliance seeks to create lasting connections that transcend borders.


Shared Values and Vision

Hotel Okura and Plataran Indonesia share a common vision of creating purposeful hospitality experiences that go beyond luxury. Both companies prioritize sustainability, community involvement, and cultural preservation in their operations.

Plataran Indonesia, often referred to as the “True Indonesian Icon,” is deeply rooted in the principles of environmental conservation and local empowerment. Its properties are designed to showcase Indonesia’s natural beauty and cultural heritage while supporting nearby communities.

Hotel Okura, on the other hand, upholds the Japanese philosophy of “wa,” which emphasizes harmony, respect, and hospitality.

By combining these values, the partnership aims to redefine luxury as an experience that is not only indulgent but also meaningful and impactful.


The Road Ahead: Opportunities for Growth

The alliance between Hotel Okura and Plataran Indonesia opens up numerous opportunities for growth in the hospitality sector. Some key areas to watch include:

1. Expansion of Destination Offerings
   The development of a joint hotel in Indonesia marks just the beginning of potential collaborations in other regions. Both companies could explore opportunities in emerging markets across Asia, leveraging their combined expertise to cater to diverse traveler preferences.
2. Innovative Guest Experiences
   By blending Japanese precision with Indonesian warmth, the partnership can introduce innovative guest experiences, from wellness retreats and culinary adventures to immersive cultural programs.
3. Strengthening Bilateral Relations
   As a symbol of friendship and collaboration between Indonesia and Japan, the partnership has the potential to strengthen bilateral relations and boost tourism exchanges between the two nations.
4. Enhanced Employee Training and Development
   The personnel exchange programs will not only enhance the skills of individual employees but also create a pool of cross-culturally trained hospitality professionals who can drive innovation and excellence across both brands.

The strategic alliance between Hotel Okura Co. and Plataran Indonesia is a testament to the power of collaboration in the hospitality industry.

By combining their unique strengths, the two companies are poised to set new standards in luxury tourism while promoting cultural exchange and sustainable development.

As they embark on this journey together, guests can look forward to a richer, more meaningful travel experience that reflects the best of both Indonesian and Japanese hospitality traditions.

This partnership not only benefits the two brands but also contributes to the broader goal of fostering understanding, friendship, and collaboration between nations.
 
 

Japanese trading house Itochu Corp said Thursday it is considering joining other companies in a management buyout of Seven & i Holdings Co proposed by its founding family to fend off a takeover bid by Canada's Alimentation Couche-Tard Inc.

While no decisions have yet been made, Itochu is "able to handle any scenario" as securing funds for the massive investment would not be an issue, Executive Vice President Tsuyoshi Hachimura said at a press conference on its latest earnings.

Sources close to the matter said last month that Itochu, which owns convenience store chain FamilyMart Co., was considering investing around 1 trillion yen in the Japanese operator of the Seven-Eleven convenience store chain as part of the buyout plan.

The founding family has been seeking loans and investments from banks and investment funds to help finance the buyout deal, estimated at around 9 trillion yen.

But Hachimura declined to comment on the progress of the plan, saying "Itochu is just one piece of the overall picture. You should ask other (firms)."

Seven & i said last year that it had received a takeover bid from Alimentation Couche-Tard, the operator of Circle K convenience stores, with the offer exceeding 7 trillion yen.
 
 

Japanese Prime Minister Shigeru Ishiba held a meeting with visiting Zambian President Hakainde Hichilema on Thursday, welcoming the signing of an investment agreement between the two countries earlier in the day.

The accord invites more Japanese companies to invest in the South African nation.

The two leaders confirmed that they will closely cooperate toward the Ninth Tokyo International Conference on African Development, or TICAD 9, that will be held in Yokohama, south of Tokyo, for three days from Aug. 20.

Zambia is "an important, like-minded country that shares values and principles," Ishiba said at the meeting at the prime minister's office.

"We want to strengthen cooperation to maintain and strengthen a free and open international order based on the rule of law," he added.

Hichilema showed expectations for more investment from Japan and deeper economic ties with the country.
 
 

Nissan shares plunged on Wednesday after Japan's Nikkei business daily said the carmaker had decided to withdraw from merger talks with rival Honda.

The newspaper and other Japanese media had earlier reported that Honda had proposed making Nissan a subsidiary, instead of the previous plan to integrate under a new holding company.

"Strong opposition" within Nissan to this proposal had led it to walk away, the Nikkei said, adding that discussions on a holding company had faltered as the pair disagreed on the integration ratio and other conditions.

In late afternoon trade in Tokyo, Nissan shares were down 4.8 percent. Honda shares, however, soared 12 percent.

Tokyo Stock Exchange then suspended trading of Nissan shares, saying that confirmation of the authenticity of media reports related to the cancellation of the merger was necessary.

Nissan and Honda agreed in December to launch discussions on joining forces to create the world's third largest automaker, seen as a bid to catch up with Tesla and Chinese electric vehicle firms.

Honda's CEO insisted at the time it was not a bailout for Nissan, which last year announced thousands of job cuts after reporting a 93 percent plunge in first-half net profit.

Lacklustre consumer spending and stiff competition in several markets are making life hard for many automakers.

Business has been especially tough for foreign brands in China where electric vehicle manufacturers such as BYD are leading the way as demand grows for less polluting vehicles.

China overtook Japan as the biggest vehicle exporter last year, helped by government support for EVs.

Honda and Nissan are Japan's number two and three automakers after Toyota.

They already agreed last year to explore a partnership on EV software and components among other technologies, an initiative joined by Mitsubishi Motors in August.

But the smaller automaker's chief said this week it would make a final decision on whether to join the Honda-Nissan merger talks in mid-February or later.

In December, reports said Taiwanese electronics behemoth Foxconn had unsuccessfully approached Nissan to acquire a majority share.

It then reportedly asked Renault to sell its 35 percent stake in Nissan -- a pursuit that was put on hold before the merger talks were announced.

Nissan has weathered a turbulent decade, including the 2018 arrest of former boss Carlos Ghosn, who later jumped bail and fled Japan concealed in a music equipment box.

The company is also saddled with billions of dollars of debt that will reportedly mature over the next two years.
 
 

The government will ease regulations on online-only shareholder meetings, it has been learned.

Such shareholder meetings were first allowed during the COVID-19 pandemic due to the circumstances, and the government will now revise the Companies Law to encourage the holding of online-only shareholder meetings, according to sources.

The Justice Ministry will consult the Legislative Council, an advisory body to the justice minister, before the end of this month.

Currently, there are three types of shareholder meetings: traditional meetings that are held only at physical locations, hybrid meetings that combines offline and online participation, and online-only meetings.

Under the law, when companies hold shareholder meetings, they are required to designate a location where shareholders can attend. Due to this requirement, online-only shareholder meetings were previously not allowed.

However, the government revised the law on strengthening industrial competitiveness in 2021 following the outbreak of the novel coronavirus.

 

Under the revised law, companies may be allowed a special exemption to hold online-only shareholder meetings. However, they must amend their articles of incorporation to allow for such meetings, undergo government screening and obtain confirmation from the justice and economy ministers.

Online-only meetings make it easier for shareholders located in regional cities and foreign countries to participate, and allow companies to save on venue costs. In the United States, online-only shareholder meetings are common.

At present, however, online-only meetings can be taxing to organize. The current application procedures, for example, take up to about three months. Additionally, if some shareholders have issues connecting to the meeting and are not able to join in the decision-making process, a resolution might be canceled.

Of the 4,059 listed companies, only 71, or 1.7%, had introduced online-only shareholder meetings as of the end of November, according to ICJ, Inc., a company that holds a stake in the Tokyo Stock Exchange.

The Legislative Council reportedly will discuss revising the part of the Companies Law that requires companies to designate physical venues, and examine eliminating the need to obtain confirmation from the ministers.

The council is also expected to make rules related to connectivity issues and consider measures for elderly shareholders who do not have internet-ready devices. The council will compile a draft bill, with the aim of submitting the bill to the Diet as early as possible.
 
 

Honda Motor Co and Nissan Motor Co say they will unveil the details of their merger plan in mid-February, having originally announced they would do so by the end of January.

Honda and Nissan, Japan's second- and third-largest carmakers by volume, said they are still discussing the finer points of the merger.

The two carmakers said at a press conference last month that they had agreed to begin talks on merging under a holding company in 2026 and that each company would operate under its own brand within the holding company.

Honda chief executive Toshihiro Mibe said that Honda wanted struggling Nissan to make steady progress in restructuring as a precondition for the merger.

Honda has been urging Nissan to strengthen its restructuring efforts, according to sources close to the matter.

In November, Nissan said it would cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent after it reported a more than 90 percent drop in net profit in the April-September period.

As part of the overhaul measures, Nissan planned to offer early retirement programs to employees at its three U.S. plants while reducing its workforce in Thailand, the sources said.

But Honda remains unconvinced, calling for more drastic measures to ensure its successful turnaround, they said.

Mitsubishi Motors Corp, a partner of Nissan, had been considering joining the merger but is now leaning toward not participating in the holding company, according to other sources.

The automaker hopes to maintain its status as a listed company while exploring collaboration with Honda and Nissan without joining the merger, the sources said, adding that Mitsubishi Motors is expected to make a final decision in mid-February or later.
 
 

Overnight stays at accommodation facilities in Japan by Japanese and foreign travelers rose 5.5 percent in 2024 from the previous year to a record 651.49 million, preliminary government data showed Friday.

The growth was largely driven by foreign visitors, whose stays at hotels and Japanese inns surged 38.8 percent to 163.48 million on the back of a weak yen, according to the Japan Tourism Agency.

Overnight stays by Japanese residents, meanwhile, fell 2.3 percent to 488.01 million, with an agency official suggesting a slowdown in the post-coronavirus pandemic domestic travel boom.

The previous record high was 617.47 million marked in 2023.
With travelers continuing to concentrate in major urban areas such as Tokyo, Aichi and Osaka, the government is working on measures to address overtourism and promote regional travel.

In December alone, overnight stays stood at 55.82 million, up 6.3 percent from the same month a year earlier, with foreigners accounting for 15.29 million of the total.

Revised figures for November showed that stays by foreign visitors increased from the previous year in 43 of Japan's 47 prefectures. Tottori in western Japan saw the highest growth rate at 117 percent at 21,610 stays, followed by Ishikawa in central Japan at 116 percent at 297,390 stays.

The figures represent the number of people multiplied by the number of overnight stays they had, according to the agency.
 
 

 

Rakuten Group said it no longer plans to list its securities arm on the Tokyo Stock Exchange, and will instead focus on deepening its partnership with Mizuho Securities.

The Japanese e-commerce pioneer had planned an initial public offering for Rakuten Securities Holdings, part of a push to shore up finances depleted by a foray into Japan’s hyper-competitive wireless carrier market. In late 2023, it temporarily withdrew that application, stating that it would reapply for a listing at a later date.

But in November, Rakuten reported its first quarterly operating profit since 2020 after losses in its mobile segment shrank.

That segment is now profitable, discounting marketing costs to win new customers, Rakuten founder Hiroshi Mikitani told Bloomberg TV in a recent interview.
 
 

 

Toyota Motor Corp group sold more cars than any other automaker for the fifth consecutive year in 2024 while China's fast-growing BYD Co surpassed Honda Motor Co, Nissan Motor Co and Suzuki Motor Corp in vehicle sales for the first time, industry data showed Thursday.

Toyota group, which includes minivehicle maker Daihatsu Motor Co and truck manufacturer Hino Motors Ltd, sold 10.82 million units in 2024, down 3.7 percent from a year earlier, the Japanese company said, adding that a high level of sales was supported by robust demand for hybrid vehicles.

Archrival Volkswagen AG of Germany sold 9.03 million cars in the year. South Korea's Hyundai Motor Group, which includes Kia Corp, delivered around 7.23 million units.

BYD sold 4.27 million cars globally last year, 41.3 percent more than a year earlier and overtaking Honda's 3.81 million, Nissan's 3.35 million and Suzuki's 3.25 million vehicles, in a move that underscores the rapid growth of China's leading electric vehicle maker that has offered cheap products.

Toyota alone sold 10.16 million cars, down 1.4 percent after it was hit by a vehicle certification scandal in Japan, following which it briefly halted production of some models. Domestic sales fell 13.8 percent to 1.44 million units.

By region, the automaker's sales in North America saw a 4.3 percent rise to 2.73 million cars, while European sales logged a 3.6 percent increase to 1.17 million units amid brisk shipments of such models as the RAV4 and C-HR. Sales in China fell 6.9 percent to 1.78 million vehicles amid stiff price competition.

Sales of hybrid vehicles rose 21.1 percent to 4.14 million vehicles, lifted by increasing demand in key markets such as North America and Europe amid a cooling boom for EVs globally. The company's EV sales grew 34.5 percent to 139,892 units.

The group's global production fell 7.8 percent to 10.62 million vehicles, with Toyota's output falling 5.1 percent to 9.52 million cars.

The automaker halted production of some popular models, such as the Yaris Cross, following the scandal in which it admitted to not fully following government standards in vehicle testing.

Total global sales by Japan's eight major automakers in 2024 fell 1.1 percent from a year earlier to 24.53 million units while their worldwide production slid 6.6 percent to 24.10 million.
 
 

Fuji Media Holdings, Inc. on Thursday revised down its net profit forecast by 66.2% to ¥9.8 billion for the fiscal year ending in March 2025, due to many television commercials having been suspended.

The suspensions came after Fuji Television Network, Inc., a subsidiary of Fuji Media Holdings, drew criticism for its handling of a scandal involving former TV personality Masahiro Nakai and a woman.

Revenue from Fuji TV commercials is projected to fall by ¥23.3 billion from the previous estimates. The company does not plan to charge for the commercials that have been pulled and replaced with public announcements from the Advertising Council Japan.
 
 

Nissan Motor Corp is slashing production at its U.S. plants and offering buyouts to factory workers there as part of the Japanese automaker’s urgent efforts to return to profitability.

The move is part of Nissan’s plans, announced two months ago, to slash 9,000 jobs globally, including in China, after it racked up a quarterly loss due to sinking sales and ballooning inventory.

At Nissan's plant in Smyrna, Tennessee, one production line will maintain two shifts, while the other line will consolidate to one shift, the company said.

The Smyrna plant makes Murano, Pathfinder and Rogue sport-utility vehicles and the Infiniti QX60 luxury model.

In the Canton plant in Mississippi, which makes the Altima sedan and Frontier pickup, Nissan is reducing the speed on one line and consolidating another.

In the Decherd plant in Tennessee, which makes engines, shift adjustments will be more gradual. Some will be maintained while others will be reduced by one shift, it said.

When it announced its recovery plan in November, Nissan didn’t give details on where the job cuts might come.

The workforce reduction of 9,000 people amounts to about 6% of its more than 133,000 global employees. The company also plans to slash its global production capacity by 20%.

Nissan, based in the port city of Yokohama, said the latest offers count toward its overall job reduction plans, and are designed to make its operations more efficient and flexible.

“Nissan is taking urgent measures globally to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the company said in a statement.

Separately, Nissan and Japanese rival Honda Motor Co. are working to form a joint holding company to integrate their businesses, planned for 2026.

Nissan and Honda announced in March they will work together on electric vehicles. In August, they said that partnership was being broadened. They plan to have a “definitive agreement” by June.

Nissan is set to release its October-December financial results on Feb. 13. Nissan stocks jumped 2% in Tokyo trading after the reports about the U.S. plans surfaced.
 
 

DHL Express has signed a deal for the purchase of over 7m litres of sustainable aviation fuel (SAF) a year to help cut emissions from airfreight originating in Japan.

The deal with Cosmo Oil Marketing Co., Ltd. represents an annual purchase of 7.2m litres of SAF, which DHL Express will use for its regular cargo shipping services starting in April 2025, marking the first such initiative for the international express industry in Asia.

Saffaire Sky Energy LLC, a subsidiary of Cosmo Energy Holdings Co., Ltd, will produce SAF at its mass production facility in Japan and is scheduled to begin operations in 2025.

The SAF fuel procured under this agreement will be delivered to Chubu Centrair International Airport, near Nagoya. The Japanese airport will be the first airport to utilise SAF in Asia among more than 500 airports used in the DHL Express global network, according to DHL.

DHL Express currently accepts SAF at airports around the world including Amsterdam Schiphol in the Netherlands, Stockholm Arlanda in Sweden, Brussels Airport in Belgium, East Midlands and Stansted airports in the UK, Los Angeles, Miami and San Francisco in the US, and Leipzig Airport in Germany.

Tony Khan, president and representative director of DHL Express Japan, said: “We are pleased that, through our agreement with Cosmo Oil Marketing, we will be the first international express provider in Japan to use the locally produced SAF on scheduled regular cargo flights.

”SAF is currently the most effective solution for reducing greenhouse gas emissions in air transport. Moving forward, as part of our responsibility to customers in Japan, we are committed to promoting emission-reduced shipping solutions and to contributing to the reduction of the transport sector’s environmental impact.”

Since 2022, DHL Express has been offering GoGreen Plus, which enables air cargo customers to reduce (in-set) their Scope 3 greenhouse gas emissions using SAF.

In addition to Cosmo Oil Marketing in Japan, DHL also procures SAF from agreements that DHL Express has concluded with BP in the UK and Neste in Finland in 2022, and with World Energy in the US in 2023.

DHL has made major investments in SAF in the last few years. For example, in October last year, DHL Express and DHL Global Forwarding signed a renewed contract with IAG Cargo to use an extra 60 million litres of SAF. The new contract is the largest SAF agreement between an airline and a customer to date.
 


 

In response to the rising price of rice, retailers, restaurant chains and food-product manufacturers are taking steps to deal with the situation.

They are trying to absorb the costs by increasing the prices of onigiri rice balls, boxed lunches and processed rice products, as well as by ending the service of offering extra portions of rice for free.



Strategy review

Seven-Eleven Japan Co. announced on Monday that it will raise the prices of some of its boxed lunches and onigiri rice balls in phases starting from Jan. 27. The company will raise the price of rice balls by up to ¥28, including “Shiomusubi,” whose price will be raised from ¥108 (excluding tax) to ¥128. The price of boxed lunches will be raised by up to ¥60.

As customers have been shying away from stores due to higher prices, Seven-Eleven has made efforts since September to recover patrons by lowering the prices of some products, including fried rice.

However, the company was forced to review its strategy in less than six months because rice prices are expected to continue going up for an extended period of time.

Seiyu Co. began selling rice produced in Taiwan in November. It is rare for a major supermarket to sell rice produced overseas. However, the Taiwan rice is popular because it is cheaper than equivalent domestic rice but tastes almost the same, according to the supermarket.



End of free service for extra rice

Unlike retailers, rising rice prices did not immediately impact food product manufacturers and restaurant chains because they usually conclude long-term contracts for rice purchases. However, some companies have decided to raise the prices of their products as there is no sign that rice prices will decline.

Nissin Food Products Co. will raise the prices of products in the “Nissin Curry Meshi” series and other instant cup rice products by about 11% beginning with its shipments in April. Nichirei Foods Inc. will raise the prices of fried rice and other frozen foods by 10% to 30% starting in February.

In September, Skylark Holdings Co. raised the price of rice at its Gusto, Jonathan’s and other restaurants under its wing by ¥30 to ¥55. Denny’s, a subsidiary of Seven & i Holdings Co., raised the price of rice in December and ended its free service of offering extra rice during breakfast and lunch hours.


Wholesale prices increased 1.6 times

Rice became in short supply due to the low quality of the 2023 rice crop. The additional hoarding demand in preparation for a disaster further negatively affected stocks of rice.

Rice prices soared because retailers were buying all the rice they could. Prices remain high even after the rice produced in 2024 became available in stores.

According to the Agriculture, Forestry and Fisheries Ministry, the average wholesale price per 60 kilograms of all varieties of rice produced in 2024 was ¥24,665 in December, 60% higher than the same month in the previous year.

Some in the restaurant industry believe there may be a move to switch to less expensive rice produced overseas, as one executive of a major restaurant chain said.
 
 

 

 

Department store sales in Japan in 2024 totaled 5.75 trillion yen, surpassing the pre-coronavirus pandemic levels of 2019 amid inbound tourism boom, data by an industry body showed Friday.

Sales on a same-store basis increased 6.8 percent from 2023, marking the fourth consecutive year of growth. Duty-free sales surged 85.9 percent to 648.7 billion yen, hitting a record high for the second straight year, according to the Japan Department Stores Association.

Department stores saw the return of customers come into full swing toward the end of 2023 after the government downgraded the legal status of COVID-19 to the same category as seasonal influenza. The number of foreign visitors to Japan also sharply rose the following year.

An association official attributed the "return of travelers from mainland China" as a major factor that pushed up sales.

Helped by a weak yen, luxury brands and jewelry sold well among duty-free items in 2024. Japanese traditional crafts were also popular.

Demand was also strong from Japan's wealthy population, with sales of clothing exceeding food for the first time in five years, the association said.

In Japan's 10 major cities, including Tokyo and Osaka, department store sales grew 9.1 percent in 2024 from a year earlier.

Stores in other cities, however, dropped 0.5 percent amid a scale-down of sales space in stores as part of structural reform efforts, even though they have also benefited from the increasing number of foreign tourists.

In December alone, department store sales on a same-store basis gained 2.8 percent from a year before, up for the second straight month as demand for winter clothing increased due to a drop in temperature.
 
 

The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis, underscoring its confidence that rising wages will keep inflation stable around its 2% target.

The decision marks its first rate hike since July last year and comes days after the inauguration of US President Donald Trump, who is likely to keep global policymakers vigilant ahead of potential repercussions from threatened higher tariffs.

At its two-day meeting concluding on Friday, the BOJ raised its short-term policy rate from 0.25% to 0.5%, a level Japan has not seen in 17 years. It was made in a 8 to 1 vote with board member Toyoaki Nakamura dissenting.

The widely expected move underscores the central bank’s resolve to steadily push up interest rates to around 1%, a level analysts see as neither cooling nor overheating Japan’s economy.

“The likelihood of achieving the BOJ’s outlook has been rising,” with many firms saying they will continue to raise wages steadily in this year’s annual wage negotiations, the central bank said in a statement announcing the decision.

“Underlying inflation is heightening towards the BOJ’s 2% target,” the central bank said, adding that financial markets remain stable as a whole.

The BOJ made no change to its guidance on future policy, saying that it will continue to raise interest rates if its economic and price forecasts are realized. But it removed a phrase stressing the need to scrutinize risks surrounding overseas economies and markets.

“Their logic remains the same. They are still far away from neutral, so it’s natural to make an adjustment,” said Naka Matsuzawa, chief macro strategist at Nomura Securities in Tokyo.

“Unless the BOJ either changes the logic of rate hikes, or even raises the neutral point, which they have been mulling – about 1% – there’s not going to much room for the market to price in further hikes in the future.”

The yen rose around 0.5% to 155.32 per dollar after the decision, while the two-year Japanese government bond (JGB) yield rose to 0.705%, the highest since October 2008.

Attention now shifts to any clues from BOJ Governor Kazuo Ueda in his post-meeting briefing at 0630 GMT on the pace and timing of further increases.



Inflation risks

In a quarterly outlook report, the board raised its price forecasts to project core inflation moving at or above its 2% target for three straight years.
It also said risks to the inflation outlook were skewed to the upside amid intensifying labor shortages, rising prices of rice and the boost to import costs from a weak yen.

“With regards to this year’s annual wage negotiations, there have been many views expressed by firms that they will continue to raise wages steadily,” the report said.

The head of Japan’s union umbrella group told Reuters on Friday that Japanese annual pay increases must exceed the 5.1% secured last year as real wages continue to fall.

The board now projects core consumer inflation to hit 2.4% in fiscal 2025 before slowing to 2.0% in 2026. In the previous projection made in October, it expected inflation to hit 1.9% in both fiscal 2025 and 2026.

It made no change to its forecasts that Japan’s economy will grow 1.1% in fiscal 2025 and 1.0% in 2026.

While the US economy has been solid and financial markets stable as a whole, the BOJ must be vigilant to uncertainties surrounding US policy conduct, the report said.

“The hike may have been expected but in what feels like the first time in a very long time, there were no major downgrades to their economic outlook,” said Matt Simpson, senior market analyst at City Index in Brisbane. “This keeps the door open to another 25 (basis points) hike by the year-end, and rates to sit at a whopping 0.75%.”

Japan’s core consumer inflation accelerated to 3.0% in December, the fastest annual pace in 16 months, data showed earlier on Friday, in a sign rising fuel and food prices continue to push up living costs for households.

After taking the helm in April 2023, Ueda dismantled his predecessor’s radical stimulus program in March last year and pushed up short-term interest rates to 0.25% in July.

BOJ policymakers have repeatedly said the central bank will keep raising rates, if Japan makes progress in achieving a cycle in which rising inflation boosts wages and lifts consumption, thereby allowing firms to continue passing on higher costs.
 
 

To commemorate the 55th anniversary of the tomica miniature car, Tomy Co. announced on Tuesday that it would release products for adults in cooperation with five automobile manufacturers including Toyota Motor Corp. and Nissan Motor Co.

The models will be specially designed by automobile designers from each company. In addition to Toyota and Nissan, Honda Motor Co., Mitsubishi Motors Corp., and Suzuki Motor Corp. are cooperating to launch the products sequentially starting this spring.

The Drift Turn Stage, which use water vapor to create white smoke to make the car look as if it is drifting, will also go on sale. The Drift Turn Stage lineup includes the “Initial D” manga and the “Fast and Furious” movie. Mini garages to display the collected cars will also be on sale.

Launched in 1970, tomica is a long-selling product that has been enjoyed by three generations. The total number of tomica cars sold has exceeded 1 billion units, and more than 10,000 models have been introduced.

“We will promote the appeal of tomica overseas as well as expand the adult fan base,” said Shunsuke Takeuchi, a Tomy executive officer on Tuesday.
 
 

Japan saw record-high exports last year, as its annual trade deficit declined 44% from the previous year, the Finance Ministry reported Thursday.

The trade deficit, which measures the value of exports minus imports, totaled 5.3 trillion yen, according to government data, as imports ballooned on the back of rising energy costs and growing inflation around the world.

Exports from the world’s third-largest economy totaled 107.9 trillion yen, surpassing the 100 trillion yen mark for the second-straight year, and the biggest value on record for comparable data, which dates back to 1979, the ministry said.

Some companies may have sped up their exports in anticipation of potential tariffs by U.S. President Donald Trump.

Trump has said he expects to put 25% tariffs on Canada and Mexico starting Feb 1. During his campaign, he threatened to impose tariffs on imports from China, although details on that remain unclear.

For the month of December, exports gained a greater-than-expected 2.8% on-year, while imports rose 1.8%. Exports grew to Asian and European nations, while dipping slightly to the U.S.

Imports grew most from India, Hong Kong and Iran.
Demand was especially strong for Japan's vehicles, semiconductors and other machinery.

The weakening yen, another recent trend, has the effect of inflating the value of imports. The U.S. dollar has been hovering at 150-yen levels, sometimes surpassing 160 yen, over the past year, while a year ago it was often at 140-yen levels.

Japan has recorded a trade deficit for four straight years, but last year's deficit was considerably smaller than the 9.5 trillion yen deficit for 2023.
 
 

Sales from seven major Japanese convenience store chains hit a record high of 11.8 trillion yen in 2024, bolstered by inbound tourism and demand for readily consumable snacks and drinks, data by a Japanese franchising authority showed Monday.

The sales were up 1.2 percent from the previous year, marking a third consecutive year of record highs. The number of stores in the country stood at 55,736 as of December, inching up 23 from a year ago, according to the report by the Japan Franchise Association.

Although the number of store visitors in 2024 increased by 1.2 percent to 16.4 billion people, customers felt the pinch of rising prices, and the average amount spent in a single convenience store run was 720.2 yen, down 0.05 percent from the previous year, the data showed.

Hot weather boosted soft drink sales while over-the-counter foods such as onigiri rice balls and fried snacks also saw a rise in sales.

"The increase in visitors from overseas was a factor that lifted sales," an association official said.

Monthly sales for December were down 1.2 percent from a year earlier to around 1 trillion yen. It marked the first decline in 13 months.

However, the number of customers increased year-on-year by 0.8 percent to 1.3 billion, rising for the third consecutive month.
 
 

Fuji Television Network, Inc. is considering establishing a third-party committee based on the guidelines of the Japan Federation of Bar Associations to investigate the facts regarding a scandal involving television personality Masahiro Nakai, 52, and a woman, according to sources. The TV broadcaster will hold an extraordinary meeting of its board of directors on Thursday.

The company had announced at a press conference on Friday that it would establish an investigation committee led by a third-party lawyer, but there were growing calls for the establishment of a third-party committee with greater independence.

“I hope that the investigation will proceed as soon as possible in a manner that ensures independence, and that efforts will be made to restore trust,” Internal Affairs and Communications Minister Seiichiro Murakami said at a press conference held after a Cabinet meeting on Tuesday.

The company’s news program “Live News it!” reported on Tuesday that the number of companies that had suspended commercials on Fuji TV had risen to 75 as of Monday.

The number of advertisements replaced by public announcements from the Advertising Council Japan, a public interest incorporated association, is said to be more than 350.

 

Lack of explanation spurs criticism

Companies started pulling their advertisement from Fuji TV one after another in the wake of the broadcaster’s Friday press conference. It is unusual to see a string of companies suspending their ads due to their distrust of the TV station itself, rather than of particular programs or performers. Even some Fuji employees questioned their company’s response to the case.

According to weekly magazine reports, there was an incident in June 2023 when a woman was subjected to unwanted behavior after a dinner meeting at Nakai’s home.

Later, a settlement was reached in which Nakai would pay a large sum of money to settle the matter. In response to the news reports, Nakai released an “apology” comment on Jan. 9, admitting that there had been trouble.

The report claimed that an executive of the company was involved in organizing the dinner party, but the company denied this. Koichi Minato, president of the company, did not disclose at Friday’s press conference whether or not the woman was a Fuji TV employee.

Minato indicated that an investigative committee led by a third-party lawyer would be formed to look into the matter, but he declined to provide factual details on the case.

The suspension of airing commercials spread after the press conference.
According to the company’s press release, 75 companies have suspended the airing of their commercials.

Some of the companies have stated that this was a “comprehensive decision,” but some have expressed dissatisfaction with Fuji TV’s lack of explanation. The Japan Racing Association (JRA), whose horse races are broadcast by the company, has also suspended its commercials from Monday.

“This is not a matter of an individual employee. There are compliance concerns for the entire company. The company’s announcement so far is not enough to explain the whole picture of the matter,” a spokesperson for a major financial institution said, asserting that Minato’s explanation was not sufficient.
 
 

The Japan Business Federation, or Keidanren, and the Japanese Trade Union Confederation, or Rengo, held a meeting of their leaders Wednesday, effectively starting this year's "shunto" spring wage talks.

Keidanren Chairman Masakazu Tokura and Rengo President Tomoko Yoshino agreed that it is a crucial moment to realize a cycle of economic growth through price hikes and wage increases.

 

The focus of this year's labor-management negotiations is whether the momentum for wage increase will be maintained for stable structural growth after the labor side won the largest pay hike in 33 years in last year's shunto.

At the beginning of the meeting, Tokura said, "It is the social responsibility of our companies to form a substantial middle class through wage hikes and lead the Japanese economy to a virtuous cycle of growth and distribution."

 

"We hope to share our awareness and direction and cooperate with Rengo," he added.
 
 

Many major Japanese companies said Monday they are suspending commercials on Fuji Television Network Inc, as the broadcaster faces scrutiny over its alleged involvement in a misconduct scandal involving Masahiro Nakai, a male member of the now-defunct popular idol group SMAP.

Nissan Motor Co, Toyota Motor Corp, Japan's largest carmaker, cosmetics maker Kao Corp, Lawson, Seven & i Holdings Co, McDonald's Japan and job-matching app Timee have distanced themselves from Fuji TV, which announced Friday that it is launching a probe amid allegations that an employee played a role in the incident between Nakai and a woman.

"We are currently replacing commercials to the extent possible. As for the future, we will decide by closely watching the situation," Nissan said, after switching its commercials on several programs, including "Sazae-san," Japan's longest-running animated TV series.

Kao said it has made the decision by taking into consideration its policy on human rights. Going forward, the firm said it "will make a comprehensive judgment" based on the results of Fuji TV's investigation and other announcements.

Seven & i said the suspended commercials include those for its 7-Eleven convenience stores, which were aired during Fuji TV programs such as the anime series "One Piece."

With the number of companies pulling their commercials increasing, Fuji TV said later in the day, "We apologize for the inconvenience caused to many advertisers and advertising agencies. We will refrain from disclosing details of our sales operations."

Tokyo Broadcasting System Television Inc also said Monday it has decided to end a program featuring Nakai and replace him with another host in a different show, citing a "comprehensive assessment of the situation" after discussions with both parties involved.

The Tokyo-based broadcaster, known as TBS, added it has begun to carry out an internal investigation to determine whether similar suspected incidents have been committed by its employees, although it has "not been aware of any issues so far."

According to a weekly magazine in December, what was initially planned as a meal in June 2023 with Fuji TV employees ended up with only Nakai and the woman present, leading to nonconsensual sexual activity and a 90 million yen out-of-court settlement.

The TV broadcaster denied involvement in the incident, saying that one of the employees, who reports said set up the meal, neither arranged nor was aware of it.
 
 

The Bank of Japan is expected to raise interest rates on Friday barring any market shocks when U.S. President-elect Donald Trump takes office, a move that would lift short-term borrowing costs to levels unseen since the 2008 global financial crisis.

A tightening in policy would underscore the central bank's resolve to steadily push up interest rates, now at 0.25%, to near 1% - a level analysts see as neither cooling nor overheating Japan's economy.

At the two-day meeting ending on Friday, the BOJ is likely to raise its short-term policy rate to 0.5% unless Trump's inaugural speech and executive orders upend financial markets, sources have told Reuters.

In a quarterly outlook report, the board is also expected to raise its price forecasts on growing prospects that broadening wage gains will keep Japan on track to sustainably hit the bank's 2% inflation target.

A hike by the BOJ would be the first since July last year when the move, coupled with weak U.S. jobs data, shocked traders and triggered a rout in global markets in early August.

Keen to avoid a recurrence, the BOJ has carefully prepared markets with clear signals by Governor Kazuo Ueda and his deputy last week that a rate hike was on the cards. The remarks caused the yen to rebound as markets priced in a roughly 80% chance of a rate increase on Friday.

There were also hints of near-term action last month. While the BOJ held off raising rates at the Dec. 18-19 meeting, hawkish board member Naoki Tamura proposed pushing up rates. Some of his colleagues also saw conditions fall into place for an imminent rate hike, minutes of the meeting showed.

With a policy tightening this week seen as a near certainty, market attention is shifting to Ueda's post-meeting briefing for clues on the timing and pace of subsequent increases.

As inflation has exceeded the BOJ's 2% target for nearly three years and the weak yen has kept import costs elevated, Ueda is likely to stress policymakers' resolve to continue raising interest rates.

But there is good reason to tread cautiously. While the International Monetary Fund raised its forecast for global growth in 2025, Trump's policies risk destabilising markets and stoking uncertainty about the outlook for Japan's export-reliant economy.

Domestic political uncertainty could heighten, too, as Prime Minister Shigeru Ishiba's minority coalition may struggle to pass budget through parliament and win an upper house election scheduled in July.

The economic damage caused by past ill-fated rate hikes also haunt BOJ policymakers. The BOJ ended quantitative easing in 2006 and pushed short-term rates to 0.5% in 2007, moves that triggered a storm of political criticism as delaying an end to deflation.

The BOJ cut rates from 0.5% to 0.3% in October 2008, then to 0.1% in December of that year, as the global financial crisis pushed Japan into recession. Since then, various unconventional steps have kept borrowing costs stuck near zero.

"Japan had a permanently low growth rate, inflation rate and lower level of interest rates. So policymakers, investors and the business community still ask - have we really broken free from that?," said Jeffrey Young, chief executive officer of DeepMacro.

"The BOJ is going to have to explain very carefully that they're raising rates to move away from the extraordinary policy that they adopted."
 
 

Suzuki Motor Corp. plans to expand exports of its passenger cars from India to Japan, Europe, Southeast Asia and other regions, President Toshihiro Suzuki has said.

“We will take advantage of the economies of scale in India and use this country as an export base,” Suzuki said at a press conference in New Delhi on Thursday.

Suzuki began manufacturing in India in 1983 when Toshihiro’s father, Osamu Suzuki, who died last month, was president.

Suzuki has a 40% share of the Indian market. The carmaker, which has three plants in India, plans to increase its annual production capacity from about 2.35 million units to about 4 million units by fiscal 2030 by building a new plant.

“We want to earn foreign currency through exports and cooperate in India’s development,” he said at the press conference held before the opening of an auto show in New Delhi on Friday.
 
 

Toyota Motor Corp is considering shifting some production at its central Japan home ground to other areas in a realignment aimed at addressing a labor shortage and natural disaster risks, sources familiar with the matter said.

One of the reorganization plans under consideration is to increase its production capacity in the Tohoku and Kyushu regions, located in the country's northeast and southwest, respectively, by 200,000 units each by around the early 2030s while cutting its output in the Tokai region, where it is headquartered, the sources said.

After the revamp, the automaker would be able to build 600,000 units each in Tohoku and Kyushu, while production in Tokai would be brought down from the current 2.2 million units, with its total output capacity in Japan left unchanged at around 3 million cars.

The plan is subject to changes depending on market conditions and may not materialize, the sources said. Toyota currently operates 14 auto factories in Japan.

The consideration comes as a government panel estimates there is an approximately 80 percent chance that a megaquake with a magnitude 8 to 9 will occur in the Nankai Trough -- an ocean-floor trench along the country's Pacific coast where the Eurasian and Philippine Sea tectonic plates meet -- within the next 30 years, with areas such as central Japan expected to suffer significant damage.

In addition, a severe labor shortage in the Tokai region is making it difficult for the automaker to secure enough workers. The diversification of production will address such problems, the sources said.

The Tokai region will remain its core hub for domestic production, and the company is also considering utilizing the space made available through the output transfer for the development of electric vehicles and software, they said.
 
 

 

World Bank Deputy Chief Economist Ayhan Kose has said that the Japanese economy is expected to "deliver healthy growth" over the next two years driven by increased consumption backed by rising wages.

He also indicated that there is room for the Bank of Japan to raise interest rates.

In its economic forecast released Thursday, the World Bank predicted Japan's gross domestic product will grow a real 1.2 pct in 2025 and 0.9 pct in 2026.

In an interview with Jiji Press, Kose pointed out that "when wage growth surpasses inflation in real terms, obviously, the income earners are going to be in a better position to spend." That could in turn lead to "better growth outcomes," Kose also said.
 
 
 

A leading Japanese sauce maker has established a base in Paris in anticipation of an overseas boom in kona-mon flour-based dishes.

Hiroshima-based Otafuku Sauce Co. set up the office following the rise in popularity of Japanese foods such as sushi and tempura. The Paris office is the company’s second overseas branch following Taipei.

Otafuku sent Keisuke Asakura, from its overseas sales department, to Paris in June last year. Another employee joined the office in December to help sales activities.

As part of efforts to promote flour-based okonomiyaki savory pancakes as a homemade dish, the company cooks and serves the dish at events in the United Kingdom, Italy, Belgium and elsewhere.

In addition, food samples and cooking classes are provided at local supermarkets. The dish’s complex flavors, with the umami of vegetables, are attracting consumers.

“Customers seem to like the taste,” said Asakura. “The challenge now is to raise awareness of Japan’s kona-mon culture.”

The company’s flagship okonomiyaki sauce has been exported to Europe along with other products. By establishing a base in Paris, known as the food capital of France, Otafuku wants to promote the kona-mon culture and boost sales.

The company has set a sales target of ¥1 billion for the fiscal year ending September 2027, more than double the figure for the same period in 2023.

As of June last year, there were 34 okonomiyaki restaurants and 10 other restaurants that serve takoyaki, another popular flour dish, in Europe. Out of these, 10 opened in the last three years.
 
 

Major shipping companies in Japan are boosting their cruise liner operations to meet globally growing demand for trips on luxury ships after the COVID-19 pandemic.

"This is a good opportunity," said Tsunemichi Mukai, president of MOL Cruises Ltd., the cruise ship operating arm of Mitsui O.S.K. Lines Ltd. "The Japanese cruise industry will be energized."

 

In December, MOL Cruises put a new luxury liner into service for the first time in 34 years.

The 458-passenger Mitsui Ocean Fuji features all-suite cabins, four restaurants, swimming pools and bars, as well as entertainment facilities such as a live performance stage and casino and card game rooms.

 

The company plans to offer cruise tours using the vessel to South Korea's Busan and places in Japan during the spring holiday season at prices starting from 925,000 yen per person.

This summer, NYK Cruises Co. will begin operating a new cruise liner also for the first time in 34 years.
 
 

U.S. officials late Wednesday announced a $1.6 billion deal with Toyota subsidiary Hino Motors to settle charges it deceived regulators about the amount of emissions spewed by its diesel engines.

Hino used altered emissions test data to get approval to import and sell more than 110,000 diesel engines to the U.S., most of which were installed in heavy-duty trucks made by Hino, according to the U.S. Environmental Protection Agency (EPA).

As part of the deal, Hino will plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers, violating environmental protection laws and endangering public health, U.S. Attorney General Merrick Garland said in a release.

U.S. regulators and the state of California, which has strict vehicle emission standards, worked out criminal and civil remedies with Hino valued at more than $1.6 billion.

"Hino's actions directly undermined EPA's program to protect the public from air pollution," acting EPA administrator Jane Nishida said in a release.
The proposed settlement is contingent on approval from a U.S. district court judge in the state of Michigan.

"Corporate crimes such as these endanger the health and well-being of innocent Americans, as well as the environment in which we all live," said U.S. attorney for the Eastern District of Michigan Dawn Ison.

The deal includes a five-year term of probation during which Hino will be barred from importing diesel engines it has manufactured into the United States and implement a comprehensive compliance and ethics program, according to the EPA.

Hino will also have to recall some trucks with engines violating emissions standards and spend some $155 million to replace marine and locomotive engines through the U.S. to offset excess air emissions, according to the EPA.
 
 

The bid by Nippon Steel to buy U.S. Steel may have a new lease on life, even as the potential for a new bid for the storied Pittsburgh steelmaker began to emerge Monday.

Lourenco Goncalves, the CEO of Ohio-based steelmaker Cleveland Cliffs, said in a news conference Monday that he wanted to make a new bid for U.S. Steel, which accepted the buyout offer from Nippon in 2023 after it rejected an offer by Cleveland-Cliffs.

Goncalves declined to give financial details about the bid, but said in a news conference at a Cleveland-Cliffs plant in western Pennsylvania that it is an “all-American solution" to save U.S. Steel. He said he would relocate Cleveland-Cliffs' headquarters to Pittsburgh, keep the U.S. Steel name and make Cleveland-Cliffs part of U.S. Steel.

Over the weekend, the Biden administration extended a deadline for the Japanese steelmaker to abandon plans to acquire U.S. Steel after President Joe Biden blocked the deal.

The new deadline, now in mid-June, was viewed by U.S. Steel — and investors, apparently — as an opportunity for the companies to complete the acquisition, even though President-elect Donald Trump, who takes office in a week, also opposes the deal.

Biden nixed the acquisition this month citing a potential threat to national security, though the U.S. Committee on Foreign Investment in the United States, known as CFIUS, failed to reach a consensus on the security issue.

“We are pleased that CFIUS has granted an extension to June 18, 2025 of the requirement in President Biden’s Executive Order that the parties permanently abandon the transaction," U.S. Steel said in a statement Sunday.

"We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders.”
Shares of U.S. Steel rose 6% in trading Monday.

The proposed deal kicked up an election year political maelstrom across America’s industrial heartland and quickly drew vows by Biden and Trump from the campaign trail in a critical battleground state to block the deal.

Even after the election, Trump wrote on social media in December that he is “totally against” U.S. Steel being bought by a foreign company and said he would block the deal as president. He reiterated that stance this month after it was blocked by Biden.

However, a CFIUS composed of Trump appointees and Trump himself may be free to allow the deal to go through, or negotiate new terms.

Dennis Unkovic, a Pittsburgh lawyer who works on international business transactions, including deals in which CFIUS approval was required, said a new CFIUS and a new president are not legally bound by Biden’s decision.

CFIUS giving the parties an extra six months to unwind the deal is unusual, Unkovic said. It wasn't immediately clear why CFIUS extended the deadline, but Unkovic pointed to reports that Biden's CFIUS was divided over whether it was a security threat.

“Extending this from the 30 days to the 180 days was a sign that there were people in the Biden administration that would like somebody to take a second look at this,” Unkovic said.

CFIUS' job is to see if there are workarounds or modifications to a deal to allow it to go through, and rarely is a deal turned down, Unkovic said. After CFIUS takes another look at it, it could still be up to Trump to decide.
“Now how he comes down on it, who knows?” Unkovic said.

Nippon Steel and U.S. Steel have insisted that the deal presents no national security problem for the U.S., said Biden's decision to block it was a violation of legal due process and a political calculation.

The two steel companies sued in federal court three days after Biden announcement and accused the head of the Steelworkers union, Cleveland-Cliffs and Goncalves of working together to scuttle the buyout in a separate lawsuit.

The United Steelworkers have opposed the Nippon Steel deal, concerned over whether the company would honor existing labor agreements or slash jobs, and questioned Nippon Steel's status as an honest broker for U.S. national trade interests.

However, some union members have come out in favor of the deal. Nippon Steel — the world's fourth-largest steelmaker — says its ability to invest in U.S. Steel's aging blast furnace plants in Pennsylvania and Indiana will boost the ability of the U.S. to compete in an industry dominated by China.

U.S. Steel has warned that, without Nippon Steel’s cash, it will shift production away from the blast furnaces to cheaper non-union electric arc furnaces and move its headquarters out of Pittsburgh.

Goncalves said U.S. Steel and Nippon Steel abandoning their blocked deal is critical to his company's ability to mount a new bid and, until that happens, he can't make a bid.

“If I present an offer today, they can’t take it," Goncalves said. "So the very first thing that needs to happen, the merger agreement needs to be abandoned.”

He also suggested that Trump's CFIUS could move the deadline to abandon the Nippon-U.S. Steel deal back to the original deadline set by Biden of Feb 3.
 
 

An executive of Japan's ruling Liberal Democratic Party on Tuesday urged China to abolish its import restrictions on Japanese fishery products.

Hiroshi Moriyama, secretary-general of the LDP, also requested Beijing to secure the safety of Japanese nationals in China.

Moriyama made the requests at the first dialogue meeting between Japanese and Chinese ruling parties in six years and three months, which took place in Beijing.

Japanese participants included Makoto Nishida, secretary-general of Komeito, the LDP's junior coalition partner. From China, Liu Jianchao, head of the International Department of the Communist Party of China's Central Committee, attended the meeting.

In his keynote speech, Moriyama said, "I strongly hope that China will lift import restrictions on Japanese food products including fishery products." He also called on China to resume or expand imports of beef and polished rice from Japan.
 
 

U.S. authorities extended a deadline imposed on Nippon Steel Corp and U.S. Steel Corp to abandon their merger plan to June 18, the companies said Sunday, a move that came as they fight to advance the deal in courts.

U.S. President Joe Biden issued an order on Jan 3 to block the $14.1 billion takeover of U.S. Steel by the Japanese company on national security grounds and urged the companies to take all steps necessary to "fully and permanently" abandon the deal within 30 days.

However, the order also stated the period can be extended by the Committee on Foreign Investment in the United States, a panel of U.S. federal agencies involved in screening the proposal.

The extension of the Feb 2 deadline was granted by CFIUS at the request of Nippon Steel.

Reacting to Biden's order, Japan's biggest steelmaker and U.S. Steel, the third-largest U.S. producer, have filed two federal lawsuits in the United States seeking to protect their merger plan from what they called "illegal and improper political and anticompetitive interference."

One of the lawsuits asks a court to "set aside the unlawful CFIUS review process and President Biden's accompanying order" and to instruct CFIUS to reassess the proposal.

The acquisition plan was announced in December 2023. U.S. Steel was once a symbol of American economic prowess, but it has struggled to compete with foreign rivals.

The deal became a hot-button issue in the 2024 U.S. presidential election, as Pennsylvania, where U.S. Steel is headquartered, is a key battleground state. The leadership of the politically influential United Steelworkers union also came out against the deal.

During the election campaign, Biden, who leaves office on Jan 20, Democratic presidential candidate Vice President Kamala Harris and Republican President-elect Donald Trump all publicly opposed the deal.
 
 

BYD overtook Toyota in its all-electric vehicle sales last year for the first time. 59,736 all-electric vehicles were sold in Japan in 2024, down 33% from the previous year – the first decline in four years.

BYD sold 2,223 electric vehicles in 2024, up 54% from the year before. Toyota’s EV sales were down 30% to 2,038 units, according to the Japan Automobile Dealer Association.

BYD entered Toyota’s home market in 2023 with the Atto 3 crossover and Dolphin hatchback. Atto 3 is the international name for Yuan Plus. Later, the BYD Seal EV sedan joined it.

In 2025, the Shenzhen-based automaker will launch its fourth car in Japan, the BYD Sealion 07 EV. The BYD Dolphin starts at 2.99 million yen (19,000 USD). All models BYD sells in Japan are all-electric.

EV share fell below 2% in 2024, the lowest among developed markets. While other markets’ EV sales are growing more slowly, Japan’s reluctance to adopt EVs is becoming apparent.

Toyota’s first EV, the bZ4X crossover, rose 10% to 1,012 cars in 2024. The car starts at 5.5 million yen (34,800 USD) in Japan.

Nissan Motor is the market leader in Japan, controlling about 50% of the EV market. However, sales of the Nissan Leaf fell 44% to 30,749 units, the lowest number since 2021.

Sales of the Sakura, an electric kei car that embodies Japan’s iconic lightweight minicars, dropped sharply by 38% to 22,926 units. Meanwhile, sales of the Leaf saw an even steeper decline of 48%.

Among imported EV brands, Tesla is a clear market leader, and BYD is at about 40% of its sales in Japan. The company previously announced it plans to open 100 stores in Japan by 2025.
 
 

Suzuki Motor Corp. made its CES debut in Las Vegas this week, exhibiting a light truck and electric vehicles jointly developed with various startups.
CES is one of the world’s largest technology exhibitions.

President Toshihiro Suzuki spoke to The Yomiuri Shimbun among other media at the venue on Wednesday and explained the company’s aim at the exhibition.

“We want to connect with people who share Suzuki’s philosophy,” he said.
Regarding artificial intelligence, a major theme of CES, Suzuki said: “AI is advancing further than we thought. We want to work on it so that we don’t fall behind.”

He also indicated that he intends to broaden the company’s use of AI, which is currently limited to translation and document creation, and apply it to development, sales and other areas.
 
 

Apollo Global Management plans to expand in Japan and add staff to its Asia wealth business, its regional top executive said, as global investment firms pump more resources into the region to capitalise on a surge in deals and assets. 

The New York-based asset manager aims to add around 10 people in Japan to accelerate its expansion in the country, Matthew Michelini, Apollo's Singapore-based partner and Asia-Pacific head, told Reuters. 

"If I look at the regional leads that we need to hire over the next year or two, most of them we're looking for will be seated in Japan," said Michelini, one of the architects behind Apollo's move to ramp up Asia's contribution to its global business three years ago.

Its Tokyo office currently has around 20 to 25 staff including 10 investment professionals and the firm could expand the total to 30 in the next two years, he said. 

Japan will be Apollo's fastest-growing office in Asia for the next two years, with a setup covering private equity, institutional sales, wealth and credit, Michelini said, adding capital allocation to the country is also likely to rise.
Rivals including Warburg Pincus and Carlyle are also expanding in Japan with more hires. 

The Japan expansion coincides with a surge in dealmaking over the past two years, making the country a rare bright spot amid a slowdown in mergers and acquisitions, helped by a push for better corporate governance and a weakened yen making assets cheaper.

Japan was the largest market for private equity deals in the Asia-Pacific region in 2023 accounting for 30 per cent of total deal value, compared to only 5 per cent to 10 per cent historically, showed data from consultancy Bain & Co. 


Double weath staffing 

Meanwhile, the wealth business, launched two years ago and which has garnered over $5 billion in Asia-Pacific assets, will be one of Apollo's regional growth engines where it plans to double staffing over the next two years. 

Michelini said the firm will start wealth hiring in South Korea and Australia in 2025, adding to teams in Hong Kong, Singapore and Japan, without providing staffing targets. 

In December, Apollo poached Diane Poon from KKR as a principal in its wealth team in Singapore. 

Apollo is among a few private equity firms approached by Japan's Seven & i Holdings about participating in a potential buyout of the retailer, Nikkei reported in November, in what would be the world's largest-ever management buyout. 

The firm declined to comment on whether it is engaged with parties for a Seven & i deal. 

Globally, the Nasdaq-listed private equity and corporate credit specialist aims to more than double in size over the next five years. 

Founded in 1990, Apollo is a multi-asset manager with $733 billion of assets under management as of the end of the third quarter last year. It also provides investment and asset management services to retirees.
 
 

Japan’s dealmakers are expecting a busier 2025 after more than ¥36.4 trillion ($230 billion) in mergers and acquisitions last year, underpinned by companies’ changing attitudes around business expansion.

Sitting on ample cash and trading at low valuations, firms in Japan are becoming more proactive to fend off global rivals and activist investors showing renewed interest in the country after decades of stagnant growth.

Some businesses are opting to expand quickly through high-profile global acquisitions — with Nippon Steel going so far as to sue U.S. officials to pursue a deal.

Others including Honda are considering options once unthinkable: merging with rivals, or, in the case of Fuji Soft, working with private equity funds on a buyout.

"We’re in a very different time,” said Satoshi Shimada, the head of Japan M&A at JPMorgan Chase & Co. "The need to consider offers and the need to be prepared to consider offers have become significantly real in the last 12 to 24 months.”

The shift in corporate thinking has been noticeable. Dealmakers recall Japanese firms used to request meeting private equity funds at hotels instead of their offices to avoid the embarrassment of being seen with such investors.

For bankers, it would’ve been inconceivable to have "sell the company” as an option on a pitch deck in Japan. Now, businesses are becoming receptive to all options.



Activist funds

Pressure from activist hedge funds is one source of the urgency. Investors like Elliott Investment Management and ValueAct Capital Partners have been more aggressive in Japan, seeking to profit from undervalued companies sitting on high quality operations.

Such funds, which have historically been viewed with wariness, now have the backing of the economic ministry, while institutions like the Tokyo Stock Exchange are pushing Japanese companies to pay more attention to shareholder returns.

Japan was the second-busiest market for activist investing last year, with about 150 campaigns — a near 50% jump from 2023 — data shows. Meanwhile, Japanese stocks are poised to reach new record highs in 2025.

"We’re advising companies under pressure from activist shareholders, and they’re seriously considering going private or integrating with the operation of other Japanese companies,” said Kenichi Sekiguchi, a partner in the M&A practice at law firm Mori Hamada.

Sekiguchi said his team had a robust pipeline going into this year, and expects several transactions valued from hundreds of millions to billions of dollars to be announced in the first half.

In 2024, the value of mergers and acquisition deals that involved a Japanese company rose 44% to more than $230 billion, data shows. That’s the fastest growth since 2018 and compares with a 38% rise in M&A activity across the Asia-Pacific region.

The new year is starting with a slew of prominent deals that reflect a more dynamic corporate Japan.

There’s the potential ¥9 trillion ($57 billion) management buyout of Seven & i Holdings, as the 7-Eleven operator’s founding family tries to outmaneuver a takeover bid from Alimentation Couche-Tard.

Honda and Nissan formalized their intentions to work toward a tie-up at the end of last year, which could create the world’s third-largest carmaker.

And there’s the ongoing tussle between KKR & Co. and Bain Capital to take over Fuji Soft in a $4 billion-plus deal, marking a rare hostile bid by Bain in Japan.

The acquirers are increasingly diversified. In 2024, private equity firms with Chinese roots became more active in Japan. Hillhouse Investment Management announced a tender offer for real estate company Samty Holdings.

FountainVest Partners partnered with Unison Capital to buy Japanese jeweler Tasaki & Co. for about ¥100 billion from MBK Partners.
"We’re seeing a significantly increased universe of investors and buyers,” said Jeff Acton, a partner at the boutique investment banking firm BDA Partners in Tokyo.

Acton says lately he’s having two to three meetings a week with new investors and funds looking to enter the market. "Five years ago, it would’ve been zero meetings.”



Buyouts and privatizations

Some companies see going private as a more palatable option than becoming a subsidiary of a rival company, said Tetsuro Onitsuka, a partner at Swedish buyout firm EQT in Tokyo.

"We have a good pipeline this year, and some of that comes from this type of industry-driven pressure,” Onitsuka said. "It’s not going to become like the U.S. overnight, but there is a change in mindset and that’s driving the opportunities for us.”

Carlyle Group finished deploying its fourth Japan fund in about 3.5 years, ahead of the typical five-year timeline, said Japan Co-Head Takaomi Tomioka. The fifth Japan fund closed last May with ¥430 billion from investors, the largest Japan-focused buyout fund ever raised.

"The number of buyout opportunities has increased considerably,” Tomioka said. The firm expects to deploy about ¥100 billion this year from its new Japan fund, mostly in take-privates and carve-out deals, he added.

Despite the flurry of activity on Japanese soil, companies are also continuing a years-long trend of being aggressive overseas buyers. Headwinds like the weak yen and the blocking of Nippon Steel’s bid to buy U.S. Steel may have given some firms pause initially, but is unlikely to affect the overall course of more outbound deals from Japan, dealmakers said.

Japanese corporations’ combined cash holdings are also still near all-time highs — boosted by unwinding strategic shareholdings across some of the biggest companies.

Last July, Toyota announced it would buy back ¥806.8 billion worth of stock held by companies including Mitsubishi UFJ Financial Group and Tokio Marine Holdings. That cash will now need to be used — likely for M&A overseas, bankers said.

Industries like consumer products and insurance will likely be the most active overseas, considering the demographic decline trend in Japan.

"Over the next year, we’ll see lots of multibillion dollar outbound deals,” said Ken LeBrun, a partner at law firm Davis Polk & Wardwell in Tokyo.

"Cash is available, lending by Japanese banks is open. And for a lot of Japanese companies — to make the necessary impact on their businesses, they need to do big deals.”