Nissan Motor Co has withdrawn a plan to manufacture powertrains for electric vehicles in Britain, a source familiar with the matter said Sunday, as the struggling Japanese automaker reviews its production and factory numbers.

Jacto Ltd, a Nissan subsidiary that has been jointly developing drive units for EV models, had planned to build a factory in Sunderland in 2026 and supply its parts to a Nissan assembly plant.

The EV models that Nissan has or plans to manufacture at the plant include the Leaf as well as the Juke set to be rolled out in Europe in 2027.

The Yokohama-based automaker is expected to secure the necessary drive units for the EV models from Japan.
 
 

An Idemitsu Tanker Co. crude oil tanker entered the Ise Bay in central Japan on Monday morning, becoming the first oil tanker to arrive in the country after passing through the Strait of Hormuz amid the conflict between the U.S.-Israel side and Iran.

The Idemitsu Maru, operated by the Idemitsu Kosan Co. unit, sailed through the strait, currently under a de facto blockade, in late April without paying passage fees to Iran, according to Idemitsu Kosan and other sources.

Carrying about 300,000 kiloliters of Saudi crude oil, equivalent to one day of Japan's domestic consumption, the vessel was moored off Chita, Aichi Prefecture. The oil will be unloaded at the Aichi Complex in the city and refined into gasoline and petrochemical raw materials.

Among other tankers for oil shipments to Japan, the Eneos Endeavor, owned by a group company of Eneos Corp., passed through the Strait of Hormuz earlier this month and is expected to arrive in Japan later this month or in early June.

A liquefied natural gas tanker of Mitsui O.S.K. Lines Ltd. has also passed through the strait, it was learned Monday.
 
 

The average price of a new condominium in central Tokyo in April rose 38.9 percent from a year earlier to 124.98 million yen, reflecting a rebound from the previous year's drop and rising construction costs, a research institute said.

The price in the greater metropolitan area covering the capital and its three surrounding prefectures in the reporting month slipped below 100 million yen for the first time in three months, according to the Real Estate Economic Institute.

Still, the price in the capital and Chiba, Kanagawa and Saitama prefectures, at 87.36 million yen, was up 24.8 percent from a year earlier, the institute said.

The number of new condos listed for sale in Tokyo and the neighboring prefectures climbed 15.6 percent to 1,163 units, with neighboring Kanagawa Prefecture seeing a 60.4 percent surge to 441 units.

In western Tokyo, outside the capital's 23 wards, the average price for new condominiums was 75.43 million yen, up 4.4 percent, while the price edged down 0.8 percent to 60.16 million yen in Chiba Prefecture.

The price rose 6.7 percent to 71.74 million yen in Kanagawa Prefecture and 30.9 percent to 70.14 million yen in Saitama Prefecture.

Buyers "are taking more time to consider purchases," an official said, noting contract rates remain weak across almost all the greater metropolitan area.

Consumers are continuing to tighten their purse strings due to reasons such as rising interest rates, which increase housing loans, he added.
 
 

Japanese retailer Uniqlo reopened its global flagship and largest store in South Korea on Friday, five years after shutting down in 2021. 

Located at the heart of Myeong-dong in Seoul, the store spans three floors and covers an area of approximately 3,254 square meters, making it the biggest one in the country.

It has around 42 checkout counters, 54 fitting rooms, and self-service tax-free zones for tourists. 

Uniqlo operates 16 flagship stores worldwide, with the Myeong-dong branch being the only one in South Korea. Other flagship branches include Tokyo’s 12-floor branch in Ginza. 

 

The store features all of Uniqlo’s products as well as exclusive products that can only be found at the Myeong-dong branch. 

On the first floor, customers can customize their own t-shirts using various exclusive designs from local businesses and the neighborhood’s renowned coffee shops. 

Additionally, on the first floor, customers can find various core Uniqlo items as well as pajamas from popular characters like Hello Kitty and Snoopy. 

The second floor, which is dedicated to women and baby items, welcomes customers with a mini library that features not-for-sale books highlighting South Korea’s development in various industries such as film and fashion, creating a unique experience for residents and tourists. 

The third floor includes men’s collections as well as a section dedicated to repairs and remakes. 

 

To celebrate the opening, Uniqlo is offering major discounts until Monday on some of its iconic products, such as its viral crossbody bag as well as its premium linen shirts. It will also give away freebies to those who shop during that period. 

The store is expected to draw large crowds on the weekend as customers take advantage of the discounts before the promotion concludes. 

Despite opening on a weekday, the store attracted many visitors, resulting in large queues that made customers wait around 15-30 minutes before entering. 

In 2019, South Korean customers boycotted Japanese products in a movement titled the ‘No Japan’ after Japan imposed export restrictions on core manufacturing materials. 

Uniqlo was one of the Japanese brands in South Korea that was heavily impacted by the boycott.

 

The boycott, alongside the pandemic, made the store close in 2021. By 2022, the number of Uniqlo stores went from 190 to 127. 

Now, as the boycott fades and foreigners flock to Seoul, Uniqlo’s return to tourists’ beloved shopping neighborhood reflects the demand for Japanese products and the irreplaceable quality that Uniqlo presents at a reasonable price, competing with other popular local and international stores in the area like Musinsa Standard and H&M. 

The branch is open daily and is a five-minute walk from Line 4’s Myeong-dong station or a ten-minute walk from Line 2’s Euljiro 1 station. 
 
 

Daiwa Energy & Infrastructure (DEI), a unit of Japanese financial services firm Daiwa Securities Group Inc (TYO:8601), has secured a project finance loan for a 38-MW/160.32-MWh grid-connected energy storage facility.

The disbursement was inked with Japanese lender Aozora Bank on March 31, 2026. The battery storage project is being built in Chitose City, Hokkaido, the company announced on Tuesday.
 
Daiwa Energy did not disclose the size of the project finance facility.
 
Special-purpose company (SPC) Chitose Chikudensho LLC is the owner of the project, which is scheduled to be commissioned in October 2027.

Once operational, the facility will be aggregated by Osaka Gas Co Ltd (TYO:9532).
 
Japanese trader ITOCHU Corp (TYO:8001) will supply the battery storage system. Kyocera Communication Systems is in charge of engineering, procurement, and construction (EPC), while Daiwa Real Estate Asset Management will be the asset manager.
 

Major Japanese automaker Toyota Motor Corp. plans to begin producing two popular minivan models in Taiwan in October and sell them in Japan as part of efforts to ease delivery delays caused by labor shortages.

Toyota will build the Noah and Voxy minivans that are popular in Japan at a plant of a joint venture in Taiwan after establishing a dedicated production line, company officials said Thursday.

The Taiwan plant assembles models including the Corolla and the Yaris Cross.

Toyota currently makes the Noah and Voxy minivans at Toyota Auto Body Co.'s Fujimatsu plant in Kariya in Aichi Prefecture, central Japan.

It is rare for Toyota to manufacture mainstay models for the Japanese market abroad.
 
 

Real wages in Japan decreased for the fourth straight year in fiscal 2025 which ended in March, as prices rose faster than pay.

The labor ministry released the data on Friday. It surveyed more than 30,000 businesses with at least five employees.

Nominal cash wages, including base pay, overtime and bonuses, averaged around 358,000 yen, or about 2,250 dollars, per month. This marks a 2.5 percent increase from the previous fiscal year, indicating a growth in wages for the fifth year in a row.

However, inflation-adjusted real wages were down 0.5 percent. The pace of decline was unchanged from fiscal 2024. Real wages were down 1.8 percent in fiscal 2022 and by 2.2 percent in fiscal 2023.

The labor ministry says cash wages are increasing steadily, while inflation has been slowing down this year. The ministry says it will watch whether smaller firms start offering large pay increases, as major companies did this spring.
 
 

Mizuho Financial Group Inc, one of Japan's three megabanks, and Rakuten Group Inc, one of the country's largest e-commerce firms, said Wednesday that Mizuho Bank will invest in Rakuten Bank on Oct 1.

Mizuho Bank currently holds a 14.99 percent stake in Rakuten Card on an issued stock basis, but will withdraw the investment and shift an equivalent amount into Rakuten Bank for a 5.81 percent stake.

The capital alliance comes as Mizuho aims to strengthen its ties with internet banks and gain new, especially younger, customers, as competition for deposits intensifies after the Bank of Japan ended its decade-long unorthodox monetary easing in 2024.

The partnership is expected to expand, with the two firms considering having Rakuten participate in corporate loans by Mizuho as well as outsourcing counter services in times of disaster for Rakuten customers to Mizuho. Rakuten has no physical branches.

The two groups have promoted partnerships, with the Mizuho Rakuten Card service launched in 2024 to allow card payments to be deducted from Mizuho Bank accounts. Mizuho Securities Co also holds a stake in Rakuten Securities Inc., and the investment will remain unchanged.

Rakuten will reorganize its financial business on Oct 1, with Rakuten Card and Rakuten Securities Holdings Inc placed under the umbrella of Rakuten Bank, as it plans to improve its fundraising efficiency and bring in customers by enhancing convenience through its integrated financial app.

The newly structured Rakuten Bank, including Rakuten Card, aims to post a group recurring profit of more than 400 billion yen ($2.5 billion) by the year ending March 2030.
 
 

The world’s first sale of eels that have been produced by artificially hatching them from eggs will begin on a trial basis from May 29.
 
The project, led by Oita-based leading eel farmer Yamada Suisan Co., is aiming to gauge consumer demand before the process is commercialized. However, it has been pointed out that challenges remain, including the need to establish farming techniques and for prices to be kept in check.
 
On Tuesday, Agriculture, Forestry and Fisheries Minister Norikazu Suzuki praised the taste of the eel after sampling the full-cycle cultivated eel ahead of the sales launch. “I can only say it’s delicious. I want to support efforts to make this available to many consumers,” he said.
 
“By increasing [production] volumes, we want to plan for the next phase,” said Yamada Suisan President Shintaro Yamada. The company plans to conduct trial sales at stores and on e-commerce sites, with each eel priced at around ¥5,000.
 
Full-cycle cultivation is a technique in which adult eels raised from artificially collected eggs are induced to spawn, thereby passing on the lineage to the next generation. The predecessor organization to the Japan Fisheries Research and Education Agency achieved the world’s first successful full-cycle cultivation in 2010, and the agency has continued to advance the research.
 
As a result of developments such as large-scale tanks and feed, tens of thousands of juveniles can be produced per year as of 2026.
 
However, the process of raising eels from eggs to the juvenile stage remains difficult, and the technology for efficient, stable mass production has not yet been established. The glass eels used for farming Japanese eel currently rely primarily on those bred naturally.
 
The supply of domestic eels fell to 60,941 tons in 2024, about 40% of the peak level reached in 2000, resulting in a high dependence on imports from China and other countries.
 
Controlling production costs also remains a challenge. Although the cost per juvenile eel has dropped from ¥40,000 in fiscal 2016 to ¥1,800 today, it is still three to four times higher than that of wild eels.

To ensure a stable supply, the agency has indicated that it will continue technological development with the immediate goal of reducing production costs to ¥800.
 

Defense Minister Shinjiro Koizumi on Tuesday welcomed a recent decision by the state-backed Development Bank of Japan to lift restrictions on investments in defense-related businesses.

At a press conference, Koizumi said the DBJ's move to allow investments in weapons and related products, except for inhumane weapons banned under international treaties, would encourage Japanese startups to enter the defense sector and help strengthen the industry.

"As defense minister, I welcome this decision," he said.
Japan has increased its defense spending in recent years amid growing threats from countries such as China and North Korea.

Some government-affiliated financial institutions have restricted investments involving weapons and related products, effectively preventing venture capital firms backed by those institutions from investing in defense-related businesses, according to the minister.

He warned that continued reluctance among domestic investors could enable foreign firms to dominate the sector, potentially undermining Japan's efforts to build its own defense innovation ecosystem.

The Defense Ministry will continue urging financial and investment institutions to support startups entering the defense field and help strengthen the industry, he added.

In April, the Japanese government revised limits on defense equipment exports to enable the sale of weapons overseas, marking a significant shift in defense policy for a country that has touted itself as a "peace-loving nation" under its war-renouncing Constitution since its defeat in World War II.
 
 

Japanese Prime Minister Sanae Takaichi said Wednesday she wants to implement a freeze on the country's consumption tax on food products "as soon as possible," despite concerns over the nation's fiscal health amid the ongoing Middle East crisis.

During a one-on-one parliamentary debate with opposition party leaders, Takaichi also said the government will do its utmost to limit debt issuance to support the public, as her government plans to draft a supplementary budget amid concerns the crisis could have a prolonged economic impact.

Her comments come amid rising Japanese government bond yields, partly reflecting market expectations of accelerating inflation in resource-scarce Japan and its worsening fiscal health.

Questions were led for the first time by Democratic Party for the People head Yuichiro Tamaki, as his party holds the most seats in parliament following the Centrist Reform Alliance's defeat in February's election and uncertainty over a merger between its two founding parties in the upper house.

The first half largely focused on Takaichi's decision Monday to tell ruling parties she had ordered a review into formulating a supplementary budget, just over a month after Japan enacted a record 122.31 trillion yen ($769 billion) fiscal 2026 budget, and a shift from her recent comments that it was not required at present.

The prime minister underlined her commitment to her election promise to freeze the 8 percent consumption tax on food products for two years before replacing it with a refundable tax credit system.

She also said she "seriously reflects" on proposals from Tamaki on whether the government should consider an off-ramp from its subsidies to keep gasoline prices below 170 yen per liter at the pump.

The policy, restarted in mid-March, is expected to use up its earmarked 1 trillion yen by the end of June.
 
 

 
Japan’s banks are grappling with a problem that was unthinkable a few years ago: Loans are growing faster than deposits.
 
The country is seeing an explosion of borrowing as businesses boost capital investment and buyout deals get bigger.
 
At the same time, deposits aren’t keeping up, creating a new challenge that could potentially restrain lending and prompt lenders to resort to other, more expensive funding means.
 
For decades, firms contended with the opposite case as deflation kept loan demand tepid and prompted savers to hoard cash that retained its value.
 
“We need to be more selective in our lending than before,” Sumitomo Mitsui Financial Group (SMFG) CEO Toru Nakashima told reporters at the bank’s earnings briefing on May 13.

“In the past, we were in a situation where deposits were relatively abundant, so whenever there was demand, we were able to extend loans quite aggressively.”
 
Outstanding loans for all Japanese banks increased by 5.4% year-on-year in April, according to the latest data from the Bank of Japan.

Excluding the period when businesses rushed to borrow during the pandemic, the percentage gain is the biggest since the central bank started compiling the data in 2001. Deposits grew only 1.9%.
 
A senior official at the Financial Services Agency (FSA) said he is watching the deposit trend very closely, adding that it had not been much concern for the regulator until recently.

Given liquidity and other regulatory requirements, the FSA is paying attention to whether banks can continue to meet growing finance needs of customers, said the official, who asked not to be identified in order to discuss the matter candidly.
 
Potential funding constraints have prompted big banks to team up with other firms, including a life insurer and other asset owners, while regional banks consolidate. A funding crunch could also provide opportunities for private credit funds to crack into a market long dominated by commercial banks.
 
Given the weak increase of deposits, SMFG will slow down the pace of its loan growth for the next three years. Japan’s second-largest bank plans to increase domestic deposits by ¥7 trillion ($44 billion) during the period while holding loan growth to ¥3 trillion, Nakashima said.
 
Thanks to the strong lending, Japan’s top banks are forecasting another year of record profits despite prolonged uncertainty over the Middle East.

The three biggest banks, which also include Mitsubishi UFJ Financial Group (MUFG) and Mizuho Financial Group, are not experiencing deposit flight or facing the near-term prospect of a funding shortage. Their deposits still considerably exceed their outstanding loans.
 
MUFG CEO Junichi Hanzawa said he does not have big concerns for yen funding given its “ample” deposits. “But for the future, we have to pay close attention to how we review our yen balance sheet structure,” given intensifying competition for deposits, he said.

“It’s our biggest responsibility to meet our clients’ needs. So, our main thinking is to address the needs with various funding measures.”
 
In April, Sumitomo Mitsui sold ¥150 billion of senior straight bonds, its first issuance of such yen notes in 12 years.

The move is part of the bank’s efforts to diversify funding sources as the gap between loans and deposits is narrowing, according to SMFG’s Nakashima. “We need to build a track record (of issuing) and investor pool, otherwise, we won’t be able to secure large amounts when we need,” he said.
 
The banks have already started looking for ways to reduce use of their own balance sheets by inviting institutional investors.
 
In April, it was reported that Sumitomo Mitsui and Nippon Life Insurance were in talks to set up a private credit fund with initial capital of at least ¥500 billion, to provide loans for leveraged buyouts and other areas such as real estate transactions and mezzanine financing, citing people familiar with the matter.
 
Mizuho CEO Masahiro Kihara said the bank will meet its clients’ financing needs no matter what.
 
“But it’s important to carefully assess whether we use our own balance sheet or use an asset-turnover model,” he said, referring to the business in which the bank underwrites debt and sells it to institutional investors.
 

Japanese economic growth surpassed expectations at the start of 2026, official data showed on Tuesday, but Prime Minister Sanae Takaichi is mulling an extra budget as concerns grow over inflation due to the Middle East war.

Gross domestic product (GDP) in the world's fourth-biggest economy expanded 0.5 percent in the first quarter, exceeding market forecasts of 0.4 percent.

Growth in private consumption and corporate investment contributed to the expansion, according to the cabinet office data.

It follows growth of 0.2 percent -- revised downwards from an earlier reading of 0.3 percent -- in the last quarter of 2025.

The data came as Takaichi plans to draft a supplementary budget in a bid to safeguard growth, as consumers face soaring prices of everything from energy to rice due to the Middle East conflict.

"Given the continuing uncertainty surrounding the situation in the Middle East, it is important to closely monitor the trend of prices and the impact on the economy," the government's top spokesman Minoru Kihara told reporters Tuesday, adding that Takaichi had instructed the minister of finance to consider arrangements to minimize risk.

Marcel Thieliant of Capital Economics warned the Middle East conflict was likely to impact data going forward.

"Japan's economy approached the Iran war with solid momentum but we think that GDP growth will grind to a halt this quarter and next," he wrote in a note.

Japan has been trying to stem rising oil prices with government subsidies, but the nation is likely to feel the full impact of soaring energy prices in months ahead, Thieliant said.

The country depends on the Middle East for around 95 percent of its oil imports.

Already consumer confidence has begun to slump, Thieliant added.
The Bank of Japan (BOJ) said it expected consumer prices to rise 2.8 percent in the current fiscal year, compared with the 1.9 percent previously forecast, due to the impact of the conflict. It lifted next year's outlook to 2.3 percent from 2.0 percent.

This could prompt it to raise interest rates as early as June.
It also slashed its fiscal 2026 growth forecast to 0.5 percent from 1.0 percent, and for next year trimmed its projection to 0.7 percent from 0.8 percent.

Taro Saito of the NLI Research Institute said that "disruptions in logistics will trigger production adjustments, while the deterioration of terms of trade due to soaring crude oil prices will put downward pressure on corporate profits and the real purchasing power of households".

Expectations of monetary tightening, along with concerns over Takaichi's fiscal policy, have helped drive a sharp rise in Japanese government bond yields in recent days.

Japan is also believed to have spent tens of billions of dollars in the market to boost the value of the yen, which has weakened in recent months due to the global uncertainty, as well as the gap between U.S. and Japanese interest rates.

A weaker yen makes the cost of imports more expensive in Japan, which relies on foreign countries for much of its energy and food needs.
 
 

Lawson is testing a new multilingual shopping guide system for foreign tourists who may not be familiar with the protocol for purchasing certain items.

The trial run was launched on March 24 at three of their stores in Tokyo — namely, Ikebukuro, Ginza and Shinjuku — and will continue until the end of this month.

The service uses Near Field Communication (NFC) tags to make shopping at the highly popular store easier for non-Japanese speakers, and augmented reality (AR) to introduce an element of fun for customers, with games they can play on their phones.

Currently, the shopping guide service is available for hot foods such as the convenience store’s beloved Karaage-kun, a fried chicken hot snack, and Ichiban Kuji, a raffle available at select stores where customers can win various character merchandise.

By holding a smartphone over the NFC tag placed within a store, customers can access instructional videos, which utilizes the AR system, on how to purchase items like the hot foods that can usually be found next to the register.

At Lawson, the protocol for purchasing hot foods is for customers to clean their hands using the hand sanitizer placed nearby and to take the product to the register themselves, unlike at some other convenience stores where employees handle the food.

The AR system also allows users to play a game featuring the Karaage-kun character on their smartphone.

Instructions for the shopping guide service are currently available in English, Korean and Chinese. The scope of the service could be expanded to include more locations and items if trial results are positive.

Last year, Japan welcomed a record 42.7 million foreign visitors, topping the 40-million mark for the first time.

While the government aims to have 60 million visitors by 2030, overtourism remains a concern, with inappropriate behavior among tourists or cultural misunderstandings sometimes resulting in societal friction.
 
 

The de facto blockade of the Strait of Hormuz is having a ripple effect on the car manufacture and repair industries in Japan.

Imports of naphtha, which is made from crude oil, are coming to standstill, and the shortage of naphtha-derived thinners is becoming a noticeable problem among manufacturers and painting contractors. Thinners are indispensable for making paints and coating materials.


Impact on plating, painting

In March, Ikeuchi, a Tokyo-based company that runs 31 auto body and paint shops across Japan, received an alarming notice from a supplier, saying thinner supplies may become unstable. According to Ikeuchi, the supply of thinners has decreased by about 80%, while the cost has risen by 40% to 50%.

The company was planning to open three new shops in April, but has since postponed their openings due to the inability to secure thinners and paints. Thinners are essential in cleaning car parts and diluting paints.

“If the current situation continues, we may become unable to do business. It’s a critical situation,” said the head of the company’s technology department, appealing its plight.

The thinners shortage has already resulted in decreased production in some cases. Nippon Fruehalf Co., which manufactures cargo boxes for trucks and containers, announced on April 20 that the company would partially reduce production due to shortage of thinners.

Cargo boxes are considered especially vulnerable to shortages due to the larger surface area to paint compared to passenger cars, as well as needing to paint company names and logos.

Due to raw material price hikes caused by supply constraints, Nihon Michelin Tire Co. will raise domestic shipping prices of summer tires by 3% to 5% starting in June.


Unforeseeable future

“We have no way of predicting the next several months,” said Yasushi Matsui, Denso Corp.’s executive vice president, at a results briefing on April 28, expressing concern for the future.

In the consolidated earnings forecast for the fiscal year ending March 2027, the company anticipates various uncertainties, such as naphtha supply concerns and other factors in the Middle East, will lead to a ¥45 billion decrease in operating profit.

Naphtha, produced primarily by distilling crude oil, is a raw material in plastics used in many car parts. Rising oil prices can lead to the cost increase of each part, alongside concerns of a shortage of currently secured inventory.

Japan relies on imports from the Middle East for 40% of domestic naphtha consumption, meaning the shortage will affect the whole automobile supply chain.

According to the preliminary March foreign trade statistics announced by the Finance Ministry on April 28, the amount of volatile oil, including naphtha, imported from the Middle East decreased by 36.9% compared to the same month in the previous year.


Running to secure stock

At a minister-level meeting on the situation in the Middle East on April 30, Prime Minister Sanae Takaichi explained that the domestic supply of chemical products using naphtha “is expected to continue by the end of the year and beyond” by securing alternative procurement sources, such as the United States and Peru.

According to the government, petrochemical makers and other related companies are supplying sufficient quantities of petrochemical products. However, concerns about naphtha supply persist among manufacturers and contractors, leading to a surge in companies increasing their stockpiles of naphtha-derived products.

“If businesses move to try to secure excessive stockpiles, the supply-demand balance will be disrupted, and supply imbalance may continue,” said Takayuki Honma, the head of the economic analyst department of Sumitomo Corporation Global Research Co.
 
 

Restaurant operators in Japan have been forced to review their approach to hiring foreign workers since the government suspended the issuance of special visas needed to work in the sector, as the number of holders nears its preset quota.

The sudden suspension by Japan's immigration authorities has raised the specter of fierce competition for foreign talent as the country, long known for its strict immigration policy, has been increasingly counting on foreign workers amid labor shortages.

The number of foreign workers with Type I status in the food service industry reached roughly 46,000 by the end of February, according to preliminary data, on course to surpass the fiscal 2028 quota of 50,000.

As the Immigration Services Agency has suspended the issuance of certificates of eligibility for Type I Specified Skilled Worker visa applications since April 13, some operators have warned that foreign workers whom they had been helping to obtain such visas may return to their home countries and not come back to work in Japan.

Type I visa holders can work in Japan for up to five years, but they cannot bring their family members. There is no limit on the length of stay for those with Type II visas, accompanied by their family members.

Skylark Holdings Co is among those affected by the suspension as it has employed 32 exchange students from countries such as Myanmar as part-time workers and has been helping them prepare for the Type I status examination scheduled for June.

The company had planned to promote them after two years of experience and eventually make them full-time employees once they have obtained Type II status.

As a company that places a strong emphasis on customer service, a Skylark official said some employees may return to their home country instead of seeking visa status in one of the other 15 fields, as they "joined the company because they found interacting with customers fulfilling."

Mos Food Services Inc, the operator of the Mos Burger chain, has also expressed concern over the situation, as it has been providing support in Vietnam for local people seeking specified skilled worker visas.

According to the Japan Foodservice Association, which has around 400 restaurant operators as members, the suspension could affect new store development plans and operating hours.

People in the industry fear some companies may even begin poaching foreign workers with Type I status visas.

The association also said there are concerns the sudden suspension could make the Japanese job market less attractive to foreign workers.

It plans to make a request to the Ministry of Agriculture, Forestry and Fisheries, which oversees the food industry, to raise the cap from 50,000 workers.

Still, the ministry wants to see stepped-up efforts on the part of companies first. "There is room for debate as to whether companies have made their utmost efforts to secure domestic workers first, a precondition for the visa system."
 
 

Calbee, Inc. plans to change the packaging of flagship products, including Potato Chips, to black and white, it was learned Monday.

The decision to decolorize is due to ongoing shortages of solvents and resins. The cause is a lack of naphtha, a key raw material for printing ink, as a consequence of the current situation in the Middle East.

The company has notified retailers and other stakeholders of the planned change.

The change will be gradually applied to 14 products, including the Lightly Salted and Consomme Punch flavors of Potato Chips and the Kappa Ebisen shrimp-flavored snack, starting late May.

Calbee is prioritizing “supply stabilization” through the temporary introduction of black-and-white packaging.

Similar moves may also be taken by other manufacturers.
 
 

 

Japanese food and beverage maker Kagome Co said Thursday it will begin selling some of its tomato ketchup products in simplified packaging due to a tightening supply of ink caused by the conflict in the Middle East.

The new packaging of Kagome Tomato Ketchup comes amid a shortage of raw materials used for white ink and will be transparent on the lower half, unlike the current design, which is fully covered with illustrations of tomatoes, with white background.

The company said on its website that finding a substitute for the white ink, which is the base color for printing the packages, is difficult "due to printing compatibility."

Products adopting the new packaging are the 500-gram, 300-gram and 180-gram tomato ketchup bottles. The company will begin introducing the redesigned packages sequentially from later this month.

The decision to simplify its packaging follows a similar move by Calbee Inc, which earlier this week announced plans to begin selling 14 of its potato chip products, including the Lightly Salted, Consomme Punch and Seaweed Salt flavors, in black-and-white packaging in response to a tighter supply of oil-derived naphtha.

Calbee also said Thursday it will raise prices on 25 snack products, including potato chips and its Jagarico potato snacks, sequentially from Sept. 1.

The company said the price increases will also apply to products with monochrome packaging, with potato chip prices expected to rise by 5 to 10 percent and Jagarico products 3 to 10 percent.
 
 

Japan's economy is projected to have grown at an annualized pace of 1.8 pct in the first three months of the year in inflation-adjusted real terms to mark the second consecutive quarter of expansion, according to average estimates by 10 private think tanks.

While the impact of the war in Iran, which began in late February, is believed to have been limited during the first quarter, it is expected to be felt in the second quarter.

The Cabinet Office is set to release preliminary gross domestic product data for the January-March period on Tuesday.

The think tanks project a 0.2 pct quarter-to-quarter rise in personal consumption, the main pillar of domestic demand, reflecting the abolition of provisional gasoline tax surcharges as well as the government's electricity and city gas subsidies.

Capital expenditure is estimated to have increased 0.2 pct, while housing investment is expected to post growth of 0.8 pct.
 
 

Building on the strategic partnership that Axiom Space and Mitsui & Co., Ltd. signed in September, and following Mitsui’s investment in Axiom Space, the partners have initiated the formation of a joint venture in Japan to accelerate on-orbit services to commercial and government customers.

This unique partnership builds on both Axiom’s in-space capabilities and Mitsui’s global industrial reach.

Together, Axiom Space and Mitsui & Co., Ltd. are opening the doors for non-traditional users to leverage the advantages of space, including microgravity and the unique vantage point of Low Earth Orbit.

These services broaden international human spaceflight, research, manufacturing, and other opportunities at the International Space Station, and enhance a growing set of opportunities at Axiom Station, now under construction.

Axiom and Mitsui have been meeting with and onboarding commercial customers in consumer electronics, entertainment, agri-tech, chem-tech, marketing/advertising and other sectors. Discussions have also expanded to government organizations, space agencies and NGOs. 

With the increased volume of the partners’ activity in Japan, they are establishing operations together to support the rapidly growing customer base.

Axiom Space launched the world’s first all-private crew to the International Space Station on April 8, 2022. Back on Earth, Axiom now has $500 million in customer contracts, 420 employees and is on track to have closed more than $1 billion of customer contracts before the end of 2022.

The first sections of Axiom Station are on schedule for launch to orbit in 2024 and 2025, where they will be connected to the ISS following the completion of verification and validation exercises. A few years later the completed Axiom Station will detach, providing a direct path to adopt much of the ISS user base.

Axiom Space’s Chief Business Officer Amir Blachman said, “We recognized Mitsui’s distinguished track record of creating global-scale industrial partnerships in the government and commercial sectors.

With Mitsui, we aim to accelerate the development of pharmaceuticals, medical devices, and advanced materials that improve the quality of life on Earth.

We will also integrate our companies’ capabilities to answer the growing demand for on-orbit satellite deployment and servicing, cloud computing, entertainment and exploration systems in orbit.”

Mitsui & Co., Ltd. is a global trading and investment company with a diversified business portfolio that spans approximately 63 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania with over 43,000 employees.

Mitsui also has a growing footprint in space. The company was selected by the Japan Aerospace Exploration Agency (JAXA) as a service provider for CubeSat deployment from the Japanese KIBO module at ISS, and was commissioned by JAXA to conduct the preliminary business concept study assuming the use of KIBO Pressurized Module in JFY 2020.

“Mitsui took this step with Axiom because of its progress far ahead of other entities who have proposed to build space stations,” Mitsui & Co., Ltd., General Manager, Space Business Dept., Kazutomi Shigeeda said. “Axiom’s unique partnership with the ISS Program and physical connection to the ISS, its peerless leadership team, and progress with commercial and government customers, position Axiom to lead the future of industry in Low Earth Orbit and we have already started jointly to develop these large markets.”  

Together, the companies aim to build on that progress and execute a shared vision – to open space to a broad user base, providing data to help solve global-scale problems, create competitive products, and allow continued opportunities for countries to cooperate in space.


About Axiom Space

Axiom Space is guided by the vision of a thriving home in space that benefits every human, everywhere. 

The leading provider of human spaceflight services and developer of human-rated space infrastructure, Axiom operates end-to-end missions to the International Space Station today while privately building its successor, Axiom Station, the first permanent commercial destination in Earth’s orbit that will sustain human growth off the planet and bring untold benefits back home. 

More information about Axiom can be found at www.axiomspace.com.


About Mitsui & Co., Ltd.

Mitsui & Co., Ltd. (8031: JP) is a global trading and investment company with a diversified business portfolio that spans approximately 63 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania.

Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries.

Mitsui has further diversified beyond its core profit pillars to create multifaceted value in new areas, including innovative Energy Solutions, Healthcare & Nutrition and through a strategic focus on high-growth Asian markets.

This strategy aims to derive growth opportunities by harnessing some of the world’s main mega-trends: sustainability, health & wellness, digitalization, and the growing power of the consumer.

For more information on Mitsui & Co’s businesses visit, www.mitsui.com.
 
 

The Organization for Economic Cooperation and Development suggested in a report Wednesday that Japan's macroeconomic policies "be calibrated carefully."

As the East Asian economy is shifting toward "a new equilibrium in terms of higher prices and wages," careful policy adjustments are required to "balance keeping inflation around the 2 pct target (set by the Bank of Japan), ensuring fiscal sustainability and boosting potential growth notwithstanding an aging population," according to the OECD Economic Survey of Japan.

The OECD expects Japan to post "moderate but robust" growth through 2027 supported by domestic demand.

But the forum of advanced economies has revised down its 2026 forecast for the country's real growth to 0.7 pct from 0.9 pct it projected in March, due chiefly to surging crude oil prices since the start of the ongoing war in Iran.
"Downside risks are elevated," it said in the report.

Expecting that "price pressures will increase in the near-term due to higher energy prices," the report underscores the importance of continuing gradual monetary policy normalization and keeping inflation in the vicinity of the target.
 
 

Japanese investors became net sellers of foreign stocks in April for the first time in four months, as concerns over rising energy costs linked to the Iran war and broader inflation risks weighed on sentiment toward overseas equities.

Data released by Japan’s Ministry of Finance on Wednesday showed that investors sold a net 636.4 billion yen ($4.04 billion) worth of foreign stocks during the month.

The figure marked the largest monthly net sale since October 2025.
The shift in investor sentiment came amid growing concerns over inflationary pressures globally.

Market participants remained cautious as higher energy prices and rising living costs continued to affect economic expectations.


Foreign stock selloff hits multi-month high

The Ministry of Finance data showed that Japanese investors sharply reduced their exposure to foreign equities in April after several months of net buying activity.

The selloff reflected growing uncertainty in overseas markets, particularly as investors monitored inflation developments and geopolitical tensions.
Japanese investors also reduced their holdings of foreign bonds during the month.

However, the pace of selling slowed significantly compared with previous months.

Net sales of foreign bonds stood at 219.2 billion yen in April, marking the lowest monthly level in three months.

The moderation in bond selling suggested that investors remained selective in adjusting overseas portfolios despite broader caution in global financial markets.


US inflation data adds to investor caution

Investor concerns intensified after fresh inflation data from the United States pointed to accelerating price pressures.

According to data released by the US Labor Department on Tuesday, US consumer inflation increased at the fastest pace in three years in April.
Prices rose across several categories, including food, services, rental costs, and airline fares.

The inflation figures reinforced concerns that persistent price increases could continue to pressure global financial markets and weigh on investor appetite for risk assets.


Trust accounts lead foreign equity withdrawals

The Ministry of Finance data also showed varying investment patterns among different categories of Japanese investors.

Japanese trust accounts pulled out 1.85 trillion yen from foreign stocks during April.

The figure represented the biggest monthly net withdrawal since June 2025.
Despite selling foreign equities, trust accounts invested 897.3 billion yen into foreign long-term bonds during the month.

Meanwhile, investment trust management companies and life insurers remained net buyers of overseas stocks.

Investment trust management companies purchased foreign equities worth 1.25 trillion yen, while life insurers bought 333.1 billion yen in overseas stocks.

The contrasting investment activity highlighted differing approaches among institutional investors toward overseas markets amid rising economic uncertainty.


Japanese investors reduce US and European bond holdings

Separate data from the Bank of Japan showed that Japanese investors also reduced holdings of overseas bonds during the first quarter.

According to the report, investors sold US bonds worth 4.95 trillion yen and European bonds worth 1.02 trillion yen during the quarter.

Within Europe, Japanese investors sold French bonds worth 797.66 billion yen and German bonds worth 307.65 billion yen.

The data indicated that Japanese investors broadly reduced exposure to overseas fixed-income markets as global inflation concerns and market uncertainty persisted.
 
 

The United States and Japan agreed that excessive volatility in foreign exchange markets is undesirable, US Treasury Secretary Scott Bessent said on Tuesday.

The statement was viewed as a signal of support for Japan’s intervention efforts to prop up the weakening yen, according to Reuters.

After meeting Prime Minister Sanae Takaichi, Bessent also expressed confidence that Bank of Japan Governor Kazuo Ueda would be able to steer monetary policy appropriately to avoid falling behind in addressing elevated inflationary pressures.

“We both believe excessive volatility is undesirable, and we continue to communicate closely with Japan’s Ministry of Finance and will maintain coordination,” Bessent told reporters when asked about Japan’s currency intervention.

He added that Japan’s economic fundamentals were considered strong and resilient, and would ultimately be reflected in the exchange rate.

The remarks indicate Washington broadly does not object to Japan’s recent interventions in the foreign exchange market to curb yen weakness, which has raised import costs and weighed on the domestic economy.

Earlier, Japan’s Finance Minister Satsuki Katayama also said she and Bessent had reaffirmed the importance of close coordination in responding to currency movements, including market intervention.

In a post on platform X after meeting Katayama, Bessent said communication between the two countries in handling “excessive volatility” in foreign exchange markets remained strong and ongoing.

However, the remarks were seen as falling short of market expectations for a firmer warning against yen weakness, prompting the dollar to briefly strengthen to around 157.72 yen before the Japanese currency rebounded sharply.

Separately, some analysts had previously speculated that Bessent would pressure the Bank of Japan to accelerate interest rate hikes to support the yen.

Instead, he expressed confidence in Governor Ueda’s ability to manage monetary policy.

Bessent also met with other Japanese economic officials and discussed strengthening co-operation in energy and critical minerals during his working visit to Japan.
 
 

A Meiji Co. biscuit snack that was discontinued in Japan more than 40 years ago has become a hit overseas.

The Hello Panda snack is currently sold at stores in the United States and other countries outside Japan, with sales of the giant panda-embossed cream-filled biscuits tripling in 2024 from those of 2018.

Hoping to turn the product into a major pillar of its overseas snacks business, the Japanese food company plans to invest 10 billion yen to boost production through means such as establishing a new production line at a factory in Pennsylvania.

In 1987, Meiji released the "Konnichiwa Panda" snack in Japan, hoping to ride on the coattails of the second giant panda boom in the country, ignited by the birth of giant panda Tong Tong at Ueno Zoo in Tokyo.

Succumbing to fierce snack competition in Japan, the product was discontinued in 1989.

Meiji started selling Hello Panda, the overseas version of Konnichiwa Panda, in Singapore in 1991, gradually expanding sales to other countries. Currently, the product is sold in over 30 countries, with the United States boasting the largest sales.
 
 

A Japanese group of forestry organizations launched an online timber marketplace in February to match forest owners with buyers nationwide.

About 30 businesses, mainly buyers, had registered on the platform by the end of April, with timber listings and transactions expected to increase soon.
Standing timber is typically traded through negotiations.

In such deals, individuals who own forests and small forestry cooperatives often have to sell at depressed prices presented by lumbering companies with large financing power and rich transaction experiences.

The new platform was set up by the Tokyo-based group for promoting the use of domestic timber and protecting forests. It makes it easier for both sellers and buyers to find transaction partners from around Japan.

The group aims to make the platform "an online flea market site for timber," an official said.

Organizers expect that transaction data accumulated on the site will facilitate the formation of market prices by conditions such as the tree species, volume and location, just as consumer online flea market platforms do.

Forest owners could refer to market prices to consider their selling prices. If market prices become widely available, many owners would find it easier to negotiate with lumber businesses.

The platform also incorporates into transaction prices reforestation costs, which are entrusted to financial institutions. Sellers can withdraw the money after replanting logged areas.

This mechanism to secure reforestation funding is expected to appeal to major construction companies and home builders increasingly seeking timber sourced with consideration for forest conservation after logging.
 
 

Honda Motor Co will freeze its plan to build an electric vehicle factory in Canada due to slow U.S. demand for such cars, sources close to the matter said.

The company, which earlier canceled development of three EV models for production in North America, originally planned to invest C$15 billion ($11 billion) to build the EV plant and another factory to make batteries in the country.

The automaker last year decided to postpone the start of EV production in Canada from 2028 by about two years.

Honda will provide details when it reports fiscal 2025 financial results on May 14, the sources said.

Citing the rethink of its EV strategy, Honda has projected a net loss of between 420 billion yen ($2.6 billion) and 690 billion yen for the year ended March.
 
 

Sony Group will buy back up to ¥500 billion ($3.2 billion) of its shares, the company said as it set out a profit forecast largely in line with expectations on Friday.

For the year through March 2027, the Tokyo-based company expects an operating profit of ¥1.6 trillion, about a 11% increase. Sony improved profitability in the fiscal year just concluded, with its music and smartphone image-sensor businesses making the biggest contributions to growth.

Shares rose as much as 7.3%, their biggest intraday jump in over two months, after Sony’s announcement.

Sony said it plans to cancel 3% of its shares on May 29, helping take some of the pressure off after its Tokyo-traded stock declined more than 20% this year due to pressure from surging component costs.

The company also said that its PlayStation 5 sales plans for the year will be contingent on its ability to procure reasonably priced memory for the flagship console.

The company is in the midst of an overhaul, casting off unprofitable hardware businesses and fixing its focus on expanding intellectual property-led divisions.

It’s close to securing a nearly $4 billion deal for a music catalog that includes the works of Justin Bieber and Neil Young, while earlier this year it surrendered majority control of its TV business to a joint venture with China’s TCL.

Its solid outlook may reassure investors about the pace of Sony’s transition and signals confidence in the company’s resilience to macroeconomic risks. Sony’s shares are down 22% this year as escalating component costs erode margins across the consumer electronics industry.

The core games division combines the burden of escalating hardware costs with promising software margins.

The upcoming release of Grand Theft Auto VI in the fall is a likely catalyst to bring in more users to Sony’s entertainment platform and online services.
 


 

Outstanding Japanese government debts grew by 1,670.6 billion yen during the first three months of the year to a record 1,343,842.6 billion yen as of the end of March, the Finance Ministry said Friday.

The total translates into about 10.94 million yen per capita, based on an estimated population of 122.86 million as of April 1.

Government spending continues to exceed tax revenues, leaving the country reliant on debts.

Of the total debts, general bonds rose by 9,811.0 billion yen to 1,104,298.4 billion yen. Borrowings increased by 191.6 billion yen to 44,324.3 billion yen, while financing bills fell by 8,100.1 billion yen to 92,299.5 billion yen.
 
 

Indonesia’s Deputy Ambassador to Japan, Maria Renata Hutagalung, opened the Indonesia–Japan Meeting and Partnership (IJMP) 2026 forum in Nagoya on Friday, May 1, 2026. It highlights opportunities for stronger economic cooperation and human resource development between the two countries.

The forum, themed “Co-creating the Future of Economic Synergy and Human Resource Development,” focused on the export potential of Indonesia’s footwear industry and palm oil derivative products in the Japanese market.

In her remarks, Maria Renata, conveyed that Indonesia’s footwear products have become an important part of the global supply chain and hold strong potential in Japan, a market that values quality, design, and sustainability.

“Indonesia’s palm oil derivative products also have strategic potential, not
only as trade commodities, but also as part of global solutions toward sustainable energy,” Maria Renata said in a statement from the Indonesian Embassy in Tokyo received in Jakarta on Wednesday, May 6, 2026.

She said the products are in line with Japan’s energy transition and biomass development agenda, while stressing the importance of sustainability practices, transparency, and certification to meet Japanese market standards.

The event was attended by Indonesia’s Honorary Consul in Nagoya Hideo Sugimoto, Director of Nagoya’s Investment and Exchange Division Kobayashi Shunsuke, Chairperson of Solidaridad Japan Sato Hiroshi, and Chairperson of the Indonesian Palm Oil Entrepreneurs Association (GPPI) Delima Hasri Azahari.

The forum also discussed efforts to improve the quality of Indonesian workers in Japan. According to data from the Indonesian Embassy in Tokyo, the number of Indonesian workers under the Specified Skilled Worker (SSW) scheme reached 86,955 people, while 124,967 Indonesians joined the Technical Intern Training Program.

As of December 2025, the total number of Indonesian citizens in Japan stood at 266,069, with Aichi Prefecture recorded as the region with the largest Indonesian community at 21,153 people.

During her visit to Nagoya, Maria Renata also attended Indonesia Fair 2026, which showcased Indonesian creative products, culinary specialties, cultural performances, and consular and immigration services for Indonesians living in Japan.
 
 

Prudential Financial’s first-quarter profit beat Wall Street’s expectations, relieving pressure on Chief Executive Officer Andy Sullivan as he contends with a sales pause in one of its biggest markets.

The insurer posted operating earnings per share of $3.61 in the first quarter, according to a statement Tuesday.

That’s up 9.7% from a year earlier and above the $3.09 average estimate of analysts, according to compiled data. Net investment income grew 11% to about $5 billion in the quarter.

Sullivan took over as CEO last year with the goal of hitting financial targets after misses in recent years. After less than a year in the role, he had to respond to a regulatory probe involving its Japan unit.

Earlier this year, Prudential voluntarily paused life insurance sales in the country for three months to restore trust after the investigation showed employee misconduct cost clients an estimated $20 million.

Since then, the firm has extended the sales pause to Nov. 5. Forced to walk back its objective to grow earnings per share by as much as 8% by 2027, the insurer now expects the sales halt to hit its earnings by as much as $575 million this year and $450 million in 2027.

The sales extension prompted Fitch Ratings to place Prudential on rating watch negative Monday.

Prudential’s stock declined 11% this year as of market close Tuesday.
 
 

Japan has won a commitment from the United Arab Emirates to increase joint crude oil stockpiles held in the Asian country by UAE companies, Economy, Trade and Industry Minister Ryosei Akazawa said Tuesday.

Akazawa said he made the request to expand such oil stockpiles in a meeting in Abu Dhabi on Tuesday with his UAE counterpart, Sultan Al Jaber, who is also special envoy to Japan.

They agreed to promote cooperation to ensure a stable supply of crude oil as the Strait of Hormuz, a key energy transportation hub, remains closed due to the deteriorating situation in the Middle East.

"We want to significantly increase the joint stockpiles with the UAE," Akazawa told reporters in Paris after his Middle Eastern tour.

"The UAE has promised to replenish the crude oil already released and to expand the stockpiles further," he said.

Crude oil from the UAE accounts for about 40 pct of Japan's total crude oil imports. The UAE withdrew from the Organization of the Petroleum Exporting Countries on Friday, planning to gradually increase production at its own discretion.
 
 

Footwear products and palm oil derivatives have great potential to develop in the context of Indonesian-Japanese economic cooperation, said Deputy RI Ambassador to Japan Maria Renata Hutagalung.

This was said by the Indonesian Embassy, Maria Renata, following the Indonesia-Japan Business Forum Meeting and Partnership (IJMP) 2026 which carried the theme "Co-creating the Future of Economic Synergy and Human Resource Development".

"Indonesian production footwear has been known to be an important part of the global supply chain. Japan is a potential market that values quality, design, and sustainability.

This opens up opportunities for penetration into the Japanese market," explained the Japanese Embassy Maria Renata, launching the statement of the Indonesian Embassy in Tokyo (6/5).

"Meanwhile, Indonesian palm oil derivatives have strategic potential, not only as a trading commodity, but also as part of a global solution towards sustainable energy. This is in line with Japan's agenda in energy transition and biomass development," he continued.

Furthermore, the Indonesian Embassy in Jakarta, Maria Renata said, "Indonesian palm oil products can contribute to the provision of environmentally friendly energy raw materials."

"For this reason, it is important for us to continue to encourage sustainable practices, transparency, and certification according to the standards of acceptance in the Japanese market," he said.

In addition to discussing trade opportunities, the IJMP forum held in Nagoya also emphasized the importance of improving the quality of Indonesian labor human resources in Japan.

The number of Indonesian workers in Japan through the Specified Skilled Worker (SSW) scheme is recorded at 86,955 people and participants in the internship program (Technical Intern Training Program) at 124,967 people.

In total, it reached 211,922 people or about 79.65 percent of the total number of Indonesian citizens in Japan, which amounted to 266,069 people as of December 2025.

Aichi Prefecture is the largest Indonesian 'pocket' in Japan, with a record of 21,153 people as of December 2025, said the Indonesian Embassy in Tokyo.

The IJMP 2026, which was held on May 1, was attended by the Honorary Consul of the Republic of Indonesia in Nagoya, Hideo Sugimoto; Director Investment & Exchange Division, Nagoya, Kobayashi Shunsuke; Chairperson of Solidaridad Japan Sato Hiroshi; Chairperson of the Indonesian Plantation Entrepreneurs Association (GPPI) Delima Hasri Azahari; Director of Tokai Office IM Japan Iwada Shinji; Vice President of the Aichi Japan Indonesia Friendship & Exchange Association (NPO) Sato Matasada; and Director of ITPC Osaka Didit Akhdiat Suryo.

Also present at this forum were farmers and MSMEs from Lamandau Regency, Central Kalimantan who processed palm oil production waste, including fruit coconuts, coconut stems and other palm oil production waste into flagship products with added value.

This SME development program is carried out together with GPPI and Solidaridad to empower and improve the economy of residents living around oil palm plantations.
 
 

Mizkan Holdings said it would suspend sales of four of its natto products from this month due to supply constraints.

The Aichi Prefecture-based foodmaker said Friday that prolonged geopolitical tensions in the Middle East have driven up prices and heightened supply risks for naphtha, a key feedstock used in petrochemical products such as packaging materials.

As a result, procurement costs have increased, putting a strain on packed natto production, Mizkan said.

Separately, the company said it would raise prices on all 19 of its natto products starting June 1, with reference retail prices, excluding tax, set to increase by between 6% and 20%.

Mizkan said it had tried to absorb the higher costs but determined that maintaining product supply under the current pricing structure had become difficult.

The company also warned that further price revisions or supply impacts could occur depending on future trends in raw material and energy costs.

Last month, the Federation of Consumer Goods Industries and Consumer’s Associations, a coalition of 712 companies and groups, conducted an emergency survey of its members in response to supply concerns tied to the war in the Middle East.

The survey, conducted between April 17 to 22, found that 44% of member companies who responded to the survey were already experiencing supply issues, with the percentage expected to increase to over 75% within the next three months.

Based on the results of the survey, the group submitted a policy proposal to the trade ministry calling for measures to ensure consumers can make informed decisions to prevent the panic buying of essential goods and for the ministry to create systems that prioritize the supply of such goods.
 
 

There has been a growing trend of agricultural companies shifting production to cooler regions such as northern Japan and high-altitude areas in response to increased damage to crops caused by the summer heat.

This is due to abnormal weather patterns becoming the norm in recent years, which could significantly alter the regions suitable for cultivation.


‘We’ve reached our limit’

In April, Kyoto-based agricultural corporation Koto Kyoto was to start cultivating Kujo green onions, a traditional Kyoto vegetable, in Date, Hokkaido. The company has purchased approximately 10 hectares of land and expects to harvest about 100 tons in the first season using 4 hectares.

Kujo green onions are relatively sensitive to heat, with an optimal growing temperature of 15-25 C. The average temperature in Kyoto City during July and August has reached around 30 C in recent years and last year the city saw 47 days of extreme heat with maximum temperatures exceeding 35 C.

The company reports that maintaining yields has become difficult due to poor growth caused by high temperatures.

Koto Kyoto initially cultivated the onions within Kyoto year-round, however, it has suspended summer cultivation and dispersed production to the northern and central regions of Kyoto Prefecture since 2022.

The company has expanded operations to places outside the prefecture, such as Iwate Prefecture, where it has contracted growers, and is focusing on securing yields. However, anticipating that the impact of the heat will continue to spread, the company decided to expand into Hokkaido.

“I feel we have reached the limit of summer cultivation,” said President Toshiyuki Yamada. “This is to protect our high-quality, delicious green onions.”

Date is located in southwestern Hokkaido, where the average temperature during the summer (June-September) remains around 20 C. Because the area is relatively warm and receives little snow compared to the rest of Hokkaido, it has attracted attention from agricultural corporations outside Hokkaido as a summer production base.


Accelerating diversification

Asai Nursery, Inc., an agricultural corporation producing cherry tomatoes in Mie Prefecture, also completed a 1.6-hectare greenhouse in Date in late January, investing approximately ¥1.3 billion in construction costs.

The farm expects an annual harvest of about 340 tons as a summer production base.

Adverse effects such as “poor flowering” — where flowers fail to bloom due to summer heat — and “hollow fruit” — where the flesh is extremely sparse — have become increasingly noticeable at farms in Mie Prefecture over the past four to five years.

President Yuichiro Asai, 45, says, “As the heat has become more severe year by year, the diversifying of production areas was unavoidable when forecasting the next 10 or 20 years.”


High-altitude cultivation

There is also a trend toward seeking new cultivation sites in high-altitude areas. Agricultural corporation Zebra Greens., Ltd. in Kakogawa, Hyogo Prefecture, constructed approximately 1.3 hectares of tomato greenhouses in a village at an elevation of about 600 meters in Nose, Osaka Prefecture, last year and began cultivation.

Summer temperatures there are about 5 to 6 C lower than in the surrounding plains, and nighttime temperatures — which are crucial for tomato growth — drop to near the ideal range (below 20 C). Representative Toshihiko Kakitsubo said, “Since it’s near the consumer market, we can keep shipping costs down.”

“The movement to protect agriculture through a ‘production relay,’ finding new suitable locations and ensuring uninterrupted shipments, will continue to expand,” said Yasufumi Miwa, an expert on agriculture of the Japan Research Institute.

He also pointed out that “individual and small-scale farmers, for whom relocating farmland is difficult, may be forced to quit farming, so local governments need to take the lead in promoting the development of heat-tolerant varieties and the transition to alternative crops.”


Heat-related damage

According to the Japan Meteorological Agency, high temperatures have persisted across the country since the 1990s, and last summer (June-August) saw average temperatures reach record highs for the third consecutive year.

A total of 9,385 locations saw extreme heat days with maximum temperature exceeding 35 C, with temperatures of 40 C or higher observed at 30 locations.

Heat-related damage to crops is occurring across the country. A survey by the Agriculture, Forestry and Fisheries Ministry in 2024 reported that effects consistent with heat stress were observed in 40-50% of tomato-growing regions and 30-40% of mandarin orange-growing regions nationwide.

The ministry predicts that suitable growing areas for major fruit crops such as apples and mandarin oranges will shift northward and inland in the future due to global warming.

In Hokkaido, areas being used for sweet potato cultivation has increased, and Akita Prefecture is also conducting cultivation trials of the crops.

It has been reported that due to poor coloring of ornamental cabbage from central and western Japan, the flower market has requested producers in Yamagata Prefecture to increase production.
 
 

Nissan Motor Co said Friday it will scrap its plan to produce electric vehicles in the United States as demand is slowing, partly due to the end of a tax break on EV purchases in the country.

The Japanese automaker "remains fully committed to the U.S. as a lead market and a foundation for stable returns and sustained growth," its official said.

Nissan explained to U.S. auto parts suppliers that it would cancel the planned output of EV vehicles at a plant in Canton, Mississippi, and instead increase production of other models there.

The carmaker's production strategy in the United States, which centered on multiple EV models, has stagnated due to delays in development.

The company, which had planned to produce multiple EV models at the plant, said last year that it would give up producing a compact EV.

At a briefing on its long-term vision in April, Nissan said it would take a flexible approach to EV investment in the United States while closely monitoring demand trends and policy changes.

The company plans to narrow down its lineup while offering multiple powertrain options, such as hybrid vehicles, to boost competitiveness, a move that could affect its production plans.
 
 

 

• The yen, trading just shy of 160 yen to the dollar

Japan spent at least 5.0 trillion yen ($32 billion) in the foreign exchange market, according to multiple reports, in its first intervention to prop up the currency since 2024.

The yen, trading just shy of 160 yen to the dollar, is close to its level from the summer of 2024, when Japanese authorities spent billions of dollars to boost its value.

Officials had hinted in recent days at potential intervention for the currency, which has weakened against the dollar in recent months amid the Iran war and rising oil prices, as well as the gap between US and Japanese interest rates.

Thursday’s intervention was around 5.0 trillion-6.0 trillion yen ($32 billion-$38 billion), according to market participants’ estimates based on current account deposit data released by the Bank of Japan on Friday, Jiji Press and the Nikkei business daily reported.

The Yomiuri Shimbun reported similar figures on Saturday, citing an unnamed government source as confirming that the government had intervened.

The reports come after Japan’s finance minister hinted strongly Thursday that Tokyo was close to intervening in the market to support the yen, after the currency slipped to its lowest level against the dollar since mid-2024.
 

 

The government and the Bank of Japan conducted a yen-buying, dollar-selling market intervention for the first time in 21 months with the aim of preventing excessive yen selling by speculators.

They took the action ahead of an extended holiday period, when trading activity typically slows.

The foreign exchange intervention was conducted Thursday, and its amount could reach about ¥5 trillion, government sources told The Yomiuri Shimbun.

Some observers believe the effects of the intervention will be limited because conditions conducive to a weaker yen and stronger dollar, such as high oil prices and concerns over Japan’s fiscal deterioration, are expected to persist.


Move seen as ‘surprise’

The government and the BOJ had expressed concerns over the weakening of the yen, which is fueling the ongoing rising prices. It is believed they also grew concerned that the yen would stay at the ¥160 range against the U.S. dollar.

However, the latest intervention came as a “surprise,” a market source said. The government and the BOJ previously intervened in July 2024 when the yen approached ¥162 against the U.S. dollar. Among market players, ¥162 was widely perceived as a red line.

On Thursday, the yen traded in the upper ¥160 range against the dollar until the evening. At about 5 p.m., Finance Minister Satsuki Katayama said to reporters, “The time to take decisive action is approaching.” She also said, “Keep your smartphones with you even when you’re out and on your days off.”

Thirty minutes later, Atsushi Mimura, vice finance minister for international affairs who oversees foreign exchange interventions, warned markets, saying, “This is our final evacuation advisory.”

However, since Mimura assumed the current post in late July 2024, no intervention had been carried out, leading to speculation that this was merely “verbal intervention.”


Concerns over volatility

Behind the latest intervention, there was also caution regarding the possibility of reduced market participation and increased volatility.

As Friday fell on May Day, European and other markets were closed, while Japan was set to enter an extended holiday period starting Saturday.

In 2024, the government and the BOJ carried out yen-buying, dollar-selling interventions on April 29 and May 1.

On Thursday, the yen strengthened sharply against the dollar by about ¥5 following the intervention, surging to the ¥155 level. On the following day, the yen briefly touched the ¥155 range again, exceeding the previous day’s yen level. The intervention appears to have put a temporary halt to yen selling.

Masahiro Ichikawa, a chief market strategist of Sumitomo Mitsui DS Asset Management Co., said, “Caution about [the possibility of] an intervention will likely persist for the time being, making it difficult for speculators to act.”


Changes in economic structure

However, the yen has become more susceptible to selling pressure due to changes in Japan’s economic structure. It remains to be seen how long the effects of the latest intervention will last.

The nation’s trade balance, calculated by subtracting imports from exports, remained in surplus through the 2000s, but turned into a deficit in the wake of the Great East Japan Earthquake in 2011.

Amid the escalation of tensions in the Middle East, prices of fuel, such as crude oil, have remained high, raising the possibility that Japan’s trade deficit will widen in 2026. Because Japan needs to sell large amounts of yen to procure dollars, the yen has become more susceptible to depreciation.

A gap in interest rates between Japan and the United States is also a factor. Amid rising prices, the BOJ kept its policy rate unchanged at around 0.75% at its monetary policy meeting in April.

Meanwhile, in the United States, where President Donald Trump has been calling for rate cuts, the Federal Reserve Board maintained its benchmark rate in a range of 3.5% to 3.75%, causing market expectations of a U.S. rate cut this year to fade.

The foreign exchange interventions conducted by the government and the BOJ in 2024 caused the yen to strengthen in the short term, but the Japanese currency gradually returned to a weaker level.

“A foreign exchange intervention generally has immediate effects but lacks sustainability,” said Takahiro Hori, a senior market economist of Mizuho Bank.

“Whether the exchange rate will stabilize depends on factors such as the situation in the Middle East and monetary policies in Japan and the United States.”
 
 

As the situation in the Middle East deteriorates, anxiety is spreading among farmers in Japan over rising prices and supply of materials and packaging used in agricultural production.

Many of these materials and packaging products are petrochemical products made with naphtha, the price of which has been surging. If naphtha prices remain elevated, higher production costs will be unavoidable, potentially leading to higher prices for food and beverages.


Little room for ingenuity

“We cannot farm without fuel or petroleum-derived materials, and there is little room for ingenuity,” said Masaharu Inoue, who grows napa cabbage in Bando, Ibaraki Prefecture.

In his fields, Inoue uses petrochemical materials such as mulch sheets, which cover raised rows of soil to suppress weed growth. Okura Industrial Co., a Kagawa Prefecture-based manufacturer of mulch sheets, raised prices starting with shipments on April 21.

The company cited worsening procurement conditions for naphtha, with some products rising by more than 30% from previous prices. Similar moves are likely to spread to other companies.

Inoue is also concerned about transportation costs for delivering napa cabbage to food processors. Delivery prices are contracted in advance, including transportation costs. But if fuel oil prices rise sharply, he said, “we may need to negotiate a price revision.”


Containers also affected

Before farm products reach retail shelves, packaging materials such as films and bags, as well as containers such as trays, are needed to maintain freshness. Many of these products are also made from naphtha, and price increases are beginning to emerge.

Denka Polymer Co., a Tokyo-based company that makes food packaging materials, announced a series of price revisions in April for products such as commercial-use plastic wrap and plastic containers.

The company will raise prices by at least 35% for wrap delivered from May and by at least 30% for containers delivered from June. The company said it had become “extremely difficult to maintain prices through self-help efforts alone.”

For rice bags, supplies of ink used to print on films and bags have also deteriorated, prompting price increases among manufacturers. A Tokyo-based company that sells rice bags described the pace of raw material price increases as “unprecedented.”


Further push to inflation

The National Federation of Agricultural Cooperative Associations also plans to gradually raise the prices at which it sells materials to regional agricultural cooperatives from April.

The scale of the increases has not been disclosed. The move comes in response to price increase requests from suppliers.

Higher agricultural production costs are likely to eventually be passed on to retail prices.

The Agriculture, Forestry and Fisheries Ministry, which is responsible for ensuring a stable food supply, is taking the situation seriously.

This month, it set up a specialized response team within the ministry and began investigating distribution conditions for agricultural materials and food packaging.

According to the national consumer price index released by the Internal Affairs and Communications Ministry, food prices, including fresh food, rose by 5% to 7% year on year each month from January through December 2025, before slowing to the 3% to 4% range from January through March 2026. That was because the impact of rising rice prices had eased.

But inflationary pressure could intensify again because of higher crude oil and naphtha prices caused by the worsening situation in the Middle East.

Tsuyoshi Kubota, chief researcher at Teikoku Databank, which tracks food and beverage price trends, said, “The surge in crude oil prices in March may begin to feed through into food price increases from June onward.”
 
 

Japan Airlines Co. said Thursday its revenue rose 9.1 percent from a year earlier to a record 2.01 trillion yen ($12.5 billion) in the fiscal year ended March, the highest since its relisting in 2012, aided by robust demand for domestic and international travel.

Its net profit for fiscal 2025 jumped 28.6 percent to 137.60 billion yen, driven by an increase in travelers, including those flying on business and inbound tourists.

The number of domestic passengers rose 5.8 percent to 38.23 million, while international travelers increased 5.6 percent to 8.01 million.

For the current fiscal year started April, the company maintained its forecasts announced in March, saying it can cope with "severe" global conditions, such as the tense situation in the Middle East.

It expects net profit to fall 20.1 percent to 110 billion yen, partly due to an increase in maintenance costs, while sales are projected to grow 4.1 percent to 2.10 trillion yen.

The airline said at a press conference Thursday it expects to offset the impact of rising fuel prices through countermeasures, including government relief measures and higher fuel surcharges.

JAL is set to raise its surcharges for international flights in May.
Meanwhile, ANA Holdings Inc reported its net profit for fiscal 2025 rose 10.5 percent from a year earlier to a record 169.08 billion yen, also helped by strong demand.

Revenue grew 12.3 percent to 2.54 trillion yen, while operating profit rose 10.6 percent to 217.44 billion yen, both marking record highs, the parent of All Nippon Airways Co said.

For fiscal 2026, it forecasts net profit will drop 43.2 percent to 96 billion yen, on sales of 2.77 trillion yen, up 9.1 percent.

It expects operating profit to decrease to 150 billion yen, partly due to the impact of soaring fuel prices amid the Middle East conflict.
 
 

A Japan-linked vessel that had been stranded in the Persian Gulf due to the de facto blockade of the Strait of Hormuz has passed through the waterway and is now sailing toward Japan, the Foreign Ministry said Wednesday.

Sources close to the Japanese government said that no transit fee was paid to the Iranian side to allow the vessel to pass through the strait.

The vessel, the Idemitsu Maru, has three Japanese crew members aboard.
According to the sources, the ship is a tanker owned by a subsidiary of Idemitsu Kosan Co., a major Japanese oil wholesaler.

Prime Minister Sanae Takaichi posted on X on Wednesday that she regarded the news as “a positive move, including from the standpoint of protecting Japanese nationals.”

“We will continue urging the Iranian side to allow the passage of vessels from all countries, including the remaining Japan-linked ships,” she added.

The Japanese government has repeatedly conveyed to Iran that it is essential to ensure safe navigation through the Strait of Hormuz as soon as possible.

On Tuesday, PressTV, an outlet affiliated with Iranian state television, reported, “A Japanese-owned supertanker carrying 2 million barrels of crude oil has successfully transited the Strait of Hormuz after securing permission from Iranian authorities.”

That amount is about one day’s worth of oil consumption in Japan.
It is thought that a total of three Japan-linked vessels have passed through the strait since the United States and Israel began its attacks on Iran in late February, but PressTV said the Idemitsu Maru was believed to be the first crude oil tanker to do so.

According to the report, the tanker had been anchored off the coast of the United Arab Emirates for more than a week before it began sailing through the strait on Monday night. It had reportedly loaded crude oil in Saudi Arabia in early March.

According to MarineTraffic, a public vessel-tracking website, a Panama-flagged crude oil tanker named Idemitsu Maru passed through the Strait of Hormuz and, as of Wednesday night Japan time, was sailing in the Arabian Sea. The ship is believed to be the Idemitsu Maru and is reportedly headed for the Port of Nagoya.

Meanwhile, the Foreign Ministry announced Wednesday that one Japanese crew member had disembarked from a Japan-linked vessel still in the Persian Gulf and returned to Japan.

About 40 Japan-linked vessels remain in the gulf, with 12 Japanese crew members still aboard.
 
 

Leaders from major cities around the world, gathered in Tokyo for the G-NETS Leaders Summit, have adopted a joint statement stressing the importance of inter-city cooperation for strengthening natural disaster and climate change measures.

The summit was held in conjunction with SusHi Tech Tokyo 2026, an international event organized by the Tokyo metropolitan government to foster exchanges among startups, major corporations, researchers and investors.

The summit lasted three days and explored solutions to the challenges facing modern society.

Mayors and governors from about 50 cities participated in G-NETS, holding in-depth discussions on disaster preparedness, greening cities and other topics.

The joint statement released on Tuesday reaffirmed that disaster measures are an urgent common challenge for the cities.

“We will promote the real-world application of cutting-edge technologies through startup support and utilization, and have this contribute to enhancing the well-being for residents,” the statement reads.

“Action Announcements by Participating Cities” were also issued for the first time on Tuesday, with cities outlining specific measures.

Tokyo’s action announcement, signed by Gov. Yuriko Koike, reads, “To protect Tokyo’s residents from increasingly severe and frequent torrential rainfall, the Tokyo Metropolitan Government will advance the construction of regulating reservoirs to bring a cumulative storage capacity of 3.65 million cubic meters online by FY2035.”

As to the summit’s achievements, she said, “As cities face a variety of disasters, we not only compiled a joint statement, we talked about its execution.”

On the final day of the summit, the Tokyo-Southeast Asia Capitals Dialogue for Sustainability (TOKYO-SEADS), a forum bringing together leaders from Tokyo and Southeast Asian cities, was held for the first time on Wednesday.

The forum aims to strengthen cooperation with Southeast Asia, which is close geographically and shares vibrant cultural and economic ties with Tokyo.

The leaders discussed insights and exchanged views on the themes of tackling storm and flood disasters and developing urban infrastructure.
On Wednesday, the forum issued a joint statement on advancing practical initiatives.

“The threat of storms, floods and other natural disasters has notably been growing, year after year,” said Koike in closing remarks at the forum.

“We will focus on the areas of storm and flood countermeasures, urban infrastructure development, renewal and maintenance and the usage of digital technologies as we aim to create a resilient and a sustainable urban future together … Tokyo will further strengthen cooperation with the participating capitals.”

Leaders also visited the Tokyo metropolitan government’s Storm Surge Management Center in Koto Ward, Tokyo, on Wednesday. They observed the management and operation of harbor gates and the maintenance of seawalls and drainage pump stations.

The next G-NETS summit is scheduled to be held in two years.
 
 

Japan’s largest power generator JERA Co. announced Monday that it would postpone the release of its earnings forecast for fiscal 2026 due to the situation in the Middle East.

The company said it has secured the fuel necessary for thermal power generation through July but indicated that electricity rates charged by power companies will likely rise from this summer due to soaring fuel prices.

Electricity generated by JERA is sold on the Japan Electric Power Exchange and can be purchased by retail electricity providers.

Some companies make a contract directly with JERA, giving the power supplier significant influence over electricity rates. Since electricity rates reflect the price of fuel three to five months prior, rates are expected to rise gradually from June.

This is the first time JERA has decided not to announce its earnings forecast since fiscal 2022, when Russia began its aggression against Ukraine.

“We will cope with soaring prices and secure a stable fuel supply,” JERA Financial Strategy and Planning Division head Masato Otaki said during an online press conference.

JERA, which adopted International Financial Reporting Standards, announced its consolidated financial results for fiscal 2025 on Monday. The results showed ¥3.05 trillion in sales, down 9.1% from the previous fiscal year, and ¥193.5 billion in profit, which was up 5.2%.

Since the price of electricity sold is linked to fuel prices, the company’s sales declined due to falling liquefied natural gas and coal prices. However, the profit increased because the company was able to secure fuel at lower prices.
 
 

Joby Aviation, a U.S. startup backed by Toyota Motor, said Monday that it has begun demonstration flights of its "flying cars" in New York.

The electric vertical takeoff and landing, or eVTOL, aircraft flew between John F. Kennedy International Airport and Manhattan.

Toyota has invested $894 million in the startup and has been involved in its design and electrification technology development.

According to U.S. media outlets, Joby Aviation will conduct flying car test flights this week along the city's existing helicopter flight routes, carrying only pilots and no passengers.

The startup said it aims to begin passenger flights with eVTOL aircraft in New York, Texas and other states as early as the second half of this year.
 
 

The number of crude oil tankers sailing to Japan from the United States has shot up amid the effective blockade of the Strait of Hormuz, a key oil transport waterway.

As of Thursday, 13 tankers bound for Japan were confirmed to have departed from coastal U.S. areas of the Gulf of Mexico, a key oil loading hub.

One of the ships arrived in Japan via the Panama Canal, and the remaining vessels, including those passing by the Cape of Good Hope at the southern tip of Africa, are set to begin arriving next month.

The Japanese government considers North America an alternative crude oil supplier other than the Middle East, where fighting between U.S.-Israeli forces and Iran has led to the de facto closure of the Strait of Hormuz.

The number of tankers quadrupled from three about a month ago, according to Yutaro Nishi, global analyst at Rakuten Securities Economic Research Institute, who analyzed data from global ship-tracking website MarineTraffic.
 
 

Three Japanese megabanks are considering loaning a total of about ¥3.6 trillion for the inaugural projects of the $550 billion (about ¥88 trillion) in investments in the United States, it has been learned.

The investment package was agreed upon during Japan-U.S. tariff negotiations.

The target for the initial round of investments is set at $36 billion (about ¥5.7 trillion). The government-backed financial institution Japan Bank for International Cooperation (JBIC) will provide a loan to cover most of the remaining amount, securing possible funding for projects.

According to sources, the three banks, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corp. and Mizuho Bank, Ltd., are each considering providing about ¥1.2 trillion, backed by Nippon Export and Investment Insurance.

The JBIC is expected to announce its investment in the project and lending strategy later this month.

Last year, Japan and the United States agreed on a $550 billion investment package in the United States, and the initial round will target three projects: a gas-fired power plant, a crude oil export facility and a synthetic diamond manufacturing facility.

A gas-fired plant, to be built in Ohio by Japan and the United States, will be one of the largest of its kind in the United States. Multiple Japanese companies, including Toshiba Corp., Hitachi, Ltd. and Mitsubishi Electric Corp., have signaled their willingness to supply components.

Regarding the crude oil export facility, firms such as Mitsui O.S.K. Lines, Ltd., Nippon Steel Corp. and JFE Steel Corp. are seen as possible candidates to lead the project.

Several Japanese companies have shown interest in becoming involved in a synthetic diamond manufacturing facility project necessary for semiconductor production.

In the second round of investments, the construction of next-generation small modular reactors and other projects have already been decided.

The three banks have been asked to provide loans for the second and subsequent rounds of investments, potentially causing the total loan to balloon.
 
 

SusHi Tech Tokyo returned to the nation’s capital Monday for three days of exhibitions, panel sessions and business negotiations.

Asia’s largest startup convention, which runs from April 27 to 29 and is being held at Tokyo Big Sight, Koto Ward, features 770 exhibitions and will attract an estimated 60,000 attendees.  

For the first two days, it is only open to businesses. On Wednesday, it opens to the public.  

“SusHi Tech is where we envision the future — a future that realizes sustainable cities through high technology,” said Tokyo Gov. Yuriko Koike at the opening ceremony held Monday morning, explaining to the crowd how the name stands for Sustainable High City Tech Tokyo. 

“Today, the philosophy behind SusHi is more urgently needed than ever. That is because we are living in a time of profound turbulence, as you know, and we face a volatile international landscape, increasingly frequent natural disasters, growing disruptions surrounding energy and resources and a rapidly accelerating AI revolution,” she added. 

The key to the conference is its ability to directly connect startups with players in the industry that can support their growth, which could matter more in the long term than securing a single contract, the Tokyo Metropolitan Government said in a statement. 

SusHi Tech, which is now in its fourth year, has placed an emphasis on bringing in large Japanese corporations looking to actively engage and invest. It also seeks to attract international investors and venture capitalists to create the opportunity for connections. 

Last year, about 6,000 business negotiations resulted from the convention, and 45% of participants who responded to a survey conducted by the event organizers said that their conversations led to collaboration or funding.
This year, the organizers are looking to bring the number of negotiations up to 10,000. 

They have made additions this year to achieve the goal, including the introduction of a business matching app that allows participants to contact each other through the platform during the convention.

Using artificial intelligence, the app also recommends people and companies to the user for possible connections. 

The global nature of the event is another point of focus, with pavilions hosted in the convention center by 21 cities around the world.

Also featured are future experience corners, where exhibitors showcase cutting-edge technology, such as a demonstration of drone soccer and an anthropomorphic heavy machine for high-altitude work. 

The convention this year is structured around four main themes — AI, robotics, resilience and entertainment — and exhibitors are demonstrating technologies in one of these four areas.

Many of the 158 panel sessions scheduled over the three days are centered around these topics. One, held Monday, is about what Tokyo needs to become the Hollywood of the animation industry.

Prime Minister Sanae Takaichi joined Koike on stage on Monday afternoon and discussed the role startups play in leading the transformation of the country and its growth.
 
 

Burger King has been on quite the tear in Japan recently. Their explosive post-pandemic expansion saw them grow from 77 locations to 352, with a target of 600 by 2028. These ambitions caught the attention of Goldman Sachs, who purchased the Japanese chain for 78.5 billion yen, and provided them with even more financial backing to grow rapidly.

Burger King is certainly holding up their end of the deal by launching quite possibly the most aggressive expansion campaign not only in Japan, but anywhere. 

They have publicly announced that they will offer up to 40 million yen cash to any franchise owner of a rival chain, such as McDonald’s or Mos Burger, that has been in business for at least three years and is willing to convert their restaurants to Burger Kings.

▼ Perks include a faster return on investment and charbroiled, 100-percent beef patties.

 

In addition, Burger King will cover half of the initial investment to make the switch and says that their average location pulls in about 17 million yen a month. This makes a very clear statement to franchise owners that if their income is south of that, then it’s probably time for a change.

The change can take place anytime before December 2028, giving franchisees a little wiggle room to get out of their current contract without having to pay a penalty fee.

If Burger King gets a good response, this could be a key step in their projected growth since poaching other restaurants significantly cuts down on construction time, and every restaurant converted amounts to one less competitor out there.

Of course, this kind of tactic in general is not unheard of, but doing it on such a large and open scale is rare to say the least. And we're 100-percent sure no one has ever made a commercial with a jingle about it in the history of the fast food industry.


▼ The song explains that if you change your car or favorite idol, you don’t get anything for it. But if you change your restaurant, you can get 40 million yen.

https://youtu.be/1_iA4DEC1p0

If this campaign is successful, Burger King stands to win big, but that is a considerable-sized “if” in Japan.

Even in the U.S., these kinds of conversion deals are usually done behind the scenes, possibly through direct connections made at industry conventions rather than flashy campaigns on social media.

It’s probably fair to assume Japan is even more conservative about these matters, if the various corporate apologies for 10-yen price increases or being 20 seconds early are anything to go by.

You might be thinking franchisees are getting all the sweet deals from Burger King, but there are also chances for everyday folks like you and me to cash in as well. 

The chain offers periodic location scouting campaigns where anyone can submit places they think would work well as a Burger King. Any suggestion that results in Burger King leasing a property will win 300,000 yen cash, and just making a suggestion will earn you a coupon for a discount on a Whopper.


▼ They have a commercial for this too, but no jingle.

https://www.youtube.com/watch?v=pihwryM5KLU

This campaign is currently not going on, but they do seem to bring it back every few months, so now would be a good time to start scouting your neighborhood to see where a Burger King might look nice.

Meanwhile, if you’re a restaurant franchisee, you’ll have until 30 September to apply to make yourself a burger king, burger queen, or maybe even just a hungry jack.
 

Japan's core consumer prices in March rose 1.8 percent from a year earlier on higher energy costs due to surges in crude oil prices amid the Middle East conflict, government data showed Friday.

The rise in the nationwide consumer price index, excluding volatile fresh food, followed a 1.6 percent increase in February, when it climbed by less than 2 percent for the first time in nearly four years, according to the Ministry of Internal Affairs and Communications.

Core-core CPI, which strips away both energy and fresh food to reflect underlying price trends, rose 2.4 percent in March, decelerating from 2.5 percent in February.

For the fiscal year that ended March, core CPI increased 2.7 percent from a year earlier, largely reflecting surges in rice prices, which rose by a record-high 48.9 percent in the reporting year. But it stayed flat from fiscal 2024.

The end of the provisional gasoline tax on Dec. 31 led to a slowdown in rises in consumer prices in January and February but fresh inflationary pressure remains due to higher crude oil prices. The tax was abolished to ease the burden on households grappling with inflation.

For March, energy costs fell 5.7 percent after a drop of 9.1 percent in February, with gasoline falling 5.4 percent from the year before against a 14.9 percent drop the previous month.

Rising fuel costs could continue to be partially offset while a government subsidy program remains in place.

The government has decided to offer aid to wholesalers to keep the average retail price of gasoline to around 170 yen per liter. Before the financial support, the price hit an all-time high of 190.80 yen per liter on March 16. Japan depends on the Middle East for over 95 percent of its oil imports.

But a wide range of other products could see hikes in prices as manufacturers rush to find alternative sources after supplies of petroleum products were disrupted due to the effective closure of the Strait of Hormuz following the U.S.-Israeli attacks on Iran launched on Feb. 28, analysts said.

Petroleum products, specifically naphtha, are used to produce chemicals widely used in manufacturing products including plastics and critical medical supplies.

The weaker yen against the U.S. dollar, which has attracted buying as a safe-haven currency, is also feared to push up import costs, the analysts said.

Takeshi Minami, chief economist at the Norinchukin Research Institute, said it is highly likely that core inflation will remain elevated due to the protracted closure of the strait and rises in crude oil prices.

"Going forward, there is a possibility that the impact will spread widely, including price increases for petroleum-derived products such as plastics, rising food production costs due to difficulty in procuring fertilizers, and increasing logistics costs," he said.

Friday's data will be among materials to be studied at the Bank of Japan's two-day policy meeting starting Monday, when the Policy Board will decide if hiking the policy rate from the current 0.75 percent is necessary to sustainably achieve the 2 percent inflation target.

Without clear signals from Governor Kazuo Ueda about the need to hike rates amid the persistent uncertainties over the situation in the Middle East, market analysts expect that the bank will keep its monetary policy steady for now.

But Ueda has also signaled readiness to keep increasing the rate if the economy and prices move in line with its forecasts.

While the core inflation rate came below the 2 percent target for the second month in a row in March, the bank's new price index released late March to grasp underlying trends showed inflation rose 2.2 percent in February from the previous year.

The new indicator excludes the effects of policies such as free education programs, measures to ease the burden of fuel and utility costs as well as volatile fresh foods. The release of the index is widely viewed by markets as a precursor to a further interest rate hike.
 
 

As the cost of eating out soars due to rising prices, companies in Tokyo are increasingly introducing employee cafeterias where staff can eat at affordable prices.

With the new fiscal year’s tax reforms significantly raising the tax-exempt limit for meal subsidies provided by companies, there is a growing trend of supporting employees’ household budgets.

At the head office of Tokyo Star Bank in the Akasaka district in Minato Ward, Tokyo, the employee cafeteria was bustling at lunchtime on Wednesday.

Four menu items were available, including a daily special for ¥530 and fried eggplant with Chinese chili sauce on rice.

In March last year, as part of its efforts to create an attractive office environment, the bank introduced a “kitchenless cafeteria” with no kitchen or drainage facilities. Lunches prepared at a production facility are delivered and served hot.

Kazuhisa Miyoshi, a 43-year-old employee, said with a smile, “Eating out can sometimes cost around ¥1,500, so the cafeteria is a huge help for my household budget.”

A bank spokesperson noted, “We can offer meals for around ¥500, which helps support our employees financially.”

According to a March survey by Recruit Co. of workers in the Tokyo metropolitan area and Tokai and Kansai regions, the average budget for weekday lunches for eating out rose to a record high of ¥1,338, up ¥88 from the previous year.

Amid soaring lunch costs, employee cafeterias — where companies subsidize employees’ food expenses — are drawing attention as a source of affordable meals.

According to Bondish, based in Chiyoda Ward, Tokyo, which operates the bank’s cafeteria, a growing number of companies are adopting kitchenless cafeterias, with inquiries from January to March rising 40% on a year-on-year basis.


Higher tax-exempt limit

The tax reforms for this fiscal year are encouraging corporate meal subsidies.

While there was already a system in place in which income tax is not levied on meal expenses subsidized by companies during work hours up to a certain amount, the government has raised this tax-exempt limit for the first time in 42 years to address rising prices.

The limit has been increased from ¥3,500 to ¥7,500 per person per month.

As long as employees pay at least half of the total cost, they will pay no income tax on their meal subsidy.

For example, if an employee spent a total of ¥15,000 on meals in a month, the ¥7,500 subsidized by the company will be tax-exempt as long as the employee covers half of the total cost.

However, if the employee’s contribution falls short of half of the total, the entire company subsidy will be subject to income tax.

Since meal subsidies effectively increase employees’ take-home pay, they are garnering attention as the “third form of wage increase.”


Related services grow

Following the tax reforms, companies offering corporate meal services have been receiving a flood of inquiries.

Ezaki Glico Co., based in Osaka City, which allows companies to offer corporate meals without setting up a cafeteria, expanded its delivery-based corporate meal service “Sunao Delivery” to the Tokyo metropolitan area in April. It was previously only available in Osaka City.

The service can be used for as few as five meals per day, and the company said it has received many inquiries from small and midsize enterprises.

Edenred Japan Co., based in Minato Ward, Tokyo, offers “Ticket Restaurant,” a meal subsidy service that uses a dedicated smart card for payment.

Employees and their companies split the amount of money deposited on the card, which can be used to purchase meals at participating convenience stores and restaurants.

The company said that inquiries have increased significantly compared to last year.
 


 

The Japanese government on Thursday underlined the need to keep a close watch on weakening consumer sentiment amid concerns about the economic outlook due to tensions in the Middle East.

"Private consumption shows movements of picking up," the Cabinet Office said, leaving its assessment on the sector unchanged. Still, the government agency said that "attention should be given to weak movements of consumer sentiment recently."

The government kept its assessment on the overall economic situation unchanged in a monthly economic report, saying, "The Japanese economy is recovering at a moderate pace, while attention should be given to the effects caused from the situation in the Middle East."

Regarding the deterioration in consumer sentiment, a Cabinet Office official said that while it could lead to restrained consumption going forward, developments in the real economy should be closely monitored.

In the April report, the government revised up its assessment on business investment for the first time in seven months, saying that it is "picking up." The March report said that it is "picking up moderately."