A large overhang that threatened the Japanese equity market is being removed with the Bank of Japan laying out a century-long plan to offload its massive holdings of exchange-traded funds.

While benchmark stock gauges fell Friday in a knee-jerk reaction when the central bank said it would be selling its ¥75 trillion ($507 billion) stockpile, traders quickly pared much of the decline as focus turned to the very gradual nature of the program. The BOJ intends to reduce its holdings by about ¥620 billion by market value per year.

The announcement also came at the end of a week that saw the blue-chip Nikkei 225 and broader Topix index set fresh record highs. The market’s resilience to shocks over the past two years underscores the confidence, with shares recovering first from the BOJ ending negative interest rates in 2024 and more recently rallying in the face of tariffs from the U.S.

Japanese shares led gains among major markets in Asia on Monday, with the Nikkei rising 1.5% during the morning session and the Topix gaining 0.9%.

"Investors had been nervous about when the BOJ would start selling ETFs — a lot of them have been asking me about it,” said Seiichi Suzuki, chief equity analyst at Tokai Tokyo Intelligence Laboratory.

The time frame for the sell-down of ETFs is positive and suggests limited market impact, he said.

Global investors have contributed to the advance in Japanese stocks as they seek to diversify their portfolios, with equities in Tokyo trading at lower price-to-earnings and price-to-book valuations than those in the U.S.

Corporate governance reforms have also helped by encouraging buybacks, mergers and acquisitions activity and the emergence of activist investors as a powerful force for championing focus on shareholder returns.

The BOJ’s ETF sales could begin early next year, a person familiar with the matter has said.

Before then, the market still faces potential turbulence from uncertainty over the ruling Liberal Democratic Party selecting a new leader, and the continued risk of economic fallout from tariffs.

Given that the BOJ indirectly owns about 7% of Japanese stocks via ETFs, any miscalculation in its sales that exceeded market demand could still be damaging.

Yet the current amount indicated by the central bank should be easily absorbed, said Kohei Onishi, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. He noted that Japanese companies, under pressure from regulators and shareholders to stop cash hoarding, are buying back a large amount of their own shares annually.

Investors will be closely watching the impact of ETF sales on stocks with heavy weighting on the Nikkei average, such as casual clothing chain operator Fast Retailing and billionaire Masayoshi Son’s SoftBank Group. Fast Retailing shares slid 4.5% on Friday while SoftBank’s stock rose 0.7%. Both stocks rose on Monday morning.

Initially, the central bank had focused its buying on ETFs tracking the Nikkei, and it was criticized for warping markets with these purchases. It changed to buying funds tracking the Topix in 2021.

The BOJ’s hold over ETFs breaks down to around ¥17 trillion for the Nikkei and about ¥51.2 trillion for the Topix in market value, according to data compiled by Bank of America.

Japanese equities may see some short-term stress but the BOJ’s plan won’t scupper the market’s bull trend, according to Anna Wu, cross-asset strategist at VanEck Associates in Sydney.

"If we ask ourselves, will the new prime minister be pro-growth? Will fiscal expansion continue? And are foreign investors going to continue investing in Japan equities as part of U.S. diversification trade?
The answers are likely to be yes for all three,” she said.
 
 

Monday marks the 40th anniversary of the Plaza Accord, under which the Group of Five countries — Japan, the United States, Britan, France and then West Germany — decided to correct the excessive appreciation of the dollar through currency adjustments.

The accord was led by the United States to reduce its trade deficits. At the time, the country was suffering from both fiscal and trade deficits.

As the administration of U.S. President Donald Trump aims to cut the country’s trade deficits, Japan’s market players are wary that the United States may ask Japan to take measures to help correct the strong dollar.



Accord named after NY hotel

The agreement is named after the meeting’s venue, the Plaza Hotel in New York. Finance ministers and central bank governors gathered there on Sept. 22, 1985, and decided to jointly intervene in the currency markets to guide the dollar’s depreciation.

At the time, the dollar was surging due to monetary tightening designed to curb inflation in the United States, and the country was also suffering massive trade deficits due to expanding imports.

Following the accord, the dollar depreciated, and U.S. trade deficits recovered in the early 1990s. However, due to a massive influx of low-priced foreign goods into the country following economic globalization, U.S. trade deficits have begun ballooning again. The United States’ trade deficits reached a record $1.22 trillion in 2024.

However, the yen sharply appreciated against the dollar following the accord, from the ¥240 level to the dollar to the ¥150 level in one year, dealing a blow to Japan’s export industries. This prompted Japan to take monetary easing policies to address a recession caused by the strong yen, which is believed to be one of the factors that caused the economic bubble.



Possible Mar-a-Lago Accord

The yen appreciated to ¥75.32 against the dollar on Oct. 31, 2011. Currently, the yen is trading around ¥147, continuing the trend of a weak yen and a strong dollar. Some market players speculate that the U.S. administration may attempt to correct the strong dollar to boost U.S. firms’ competitiveness in exports.

In a 2024 paper, Stephen Miran, who chairs the White House Council of Economic Advisers and recently assumed the post of Federal Reserve Governor, proposed a “Mar-a-Lago Accord,” an initiative under which countries work together to help weaken the dollar. It is also called the “Second Plaza Accord.”

After the launch of his second administration, Trump repeatedly cautioned against the strong dollar at first, but recently he has refrained from touching on the subject.

Japan and the United States said in a joint statement issued on Sept. 12 that “exchange rates should be market determined,” in line with previous agreements among the Group of Seven leading countries.

However, Trump tends to change his policies back and forth. Given this, Tomohisa Ishikawa, a researcher at the Japan Research Institute cautioned about potential risks.

“[Trump’s] interest may shift to exchange rates in case tariff measures do not help reduce the U.S. trade deficits,” Ishikawa said. “The Japanese government needs to continue careful dialogues with the United States.”
 
 

Japan's antitrust watchdog on Thursday ordered the domestic unit of motorcycle company Harley-Davidson Inc to pay about 211 million yen in fines for imposing excessive sales quotas on dealers in violation of the antimonopoly law.

The Japan Fair Trade Commission also issued a cease-and-desist order to Harley-Davidson Japan KK, based in Tokyo, after some dealers were forced to register themselves as vehicle holders just to meet the quotas.

The dealers made little profit from doing so since the vehicles were sold at lower prices. However, they had no choice but to maintain their relationship with Harley-Davidson Japan, it said.

According to the commission, between January 2023 and August 2024, Harley-Davidson Japan unilaterally imposed quotas on 38 dealers and required them to submit an improvement plan if they failed to meet a certain threshold.

Every January, the company presents the dealers with an agreement containing proposed quotas and forces them to sign it.

Harley-Davidson Japan raised the sales targets by 30 percent for 2023 and 38 percent for 2024, without providing the basis for calculating the quotas. The company also refused to lower the targets when dealers requested it.

When actually selling to customers, these vehicles are treated as "nearly new used cars," forcing dealers to sell them at lower prices. The proportion registered under related parties' names by dealers during the quota period averaged about 29 percent in 2023 and about 34 percent from January to August 2024, the commission said.

Harley-Davidson Japan told Kyodo News that it fully cooperated with the commission's probe and took corrective measures by conducting a voluntary internal investigation.

According to the Japan Automobile Importers Association, Harley-Davidson accounted for 33.3 percent of the number of newly registered imported small motorcycles in 2024, ranking first for the fifth consecutive year since 2020.
 


 

Calls for abolishing an environmental performance-based tax paid when a vehicle is purchased have pitted a major automobile industry group against the government, but also caused divisions between government ministries.

As Japan’s auto industry grapples with the ramifications of tariffs imposed by the administration of U.S. President Donald Trump, the Japan Automobile Manufacturers Association (JAMA) and the Economy, Trade and Industry Ministry are demanding the tax be immediately axed.

However, the Internal Affairs and Communications Ministry and the Land, Infrastructure, Transport and Tourism Ministry are reluctant to take this step, which would lead to a drop in tax revenue.

The association announced Thursday its key requests for tax system reforms for fiscal 2026, which starts in April. These requests included a call for the environmental performance-based tax to be abolished.

“Taxes imposed on automobiles are becoming a heavy burden,” JAMA Chairman Masanori Katayama, who is also chairman of Isuzu Motors Ltd., said at a press conference, as he explained the significance of the proposed change. “We want to have this burden reduced and to shore up the domestic industrial base.”

The environmental performance-based tax was introduced in 2019 in place of the vehicle acquisition tax. This tax of 0% to 3% of the purchase price is calculated based on the vehicle’s attainment of fuel efficiency and emission standards. The tax is applied to new and used vehicles, but electric vehicles and plug-in hybrids are exempt.

Automobile taxes are paid at three stages – when a vehicle is purchased, while it is owned, and when it is being used, such as through fuel taxes. These taxes generate about ¥9 trillion in combined annual revenue.

The determined push by JAMA and the industry ministry to abolish the environmental performance-based tax comes at a time when new vehicle sales are slumping.

In 2024, about 4.42 million new vehicles were sold in Japan, a huge drop from the 7.77 million units sold in 1990. The average length of vehicle ownership was about nine years in the 1990s, but this has grown to about 13 years in the 2020s. Rising car prices and tax increases are believed to be factors behind people owning vehicles for longer.

Although the United States has reduced the tariff imposed on vehicles imported from Japan to 15%, the financial burden on domestic automakers is still considerable. Axing the environmental performance-based tax is intended to encourage people in Japan to get a new car and to prop up the auto industry.

“How we can maintain and strengthen domestic production are urgent issues to be addressed so that the auto industry’s competitiveness and jobs aren’t lost,” Katayama said.


Current system ‘unfair’

However, the environmental performance-based tax is a local tax and a crucial revenue source for municipalities. Revenue from this tax is estimated to reach about ¥190 billion in fiscal 2025.

“If this tax gets abolished, a replacement source of funds will be needed,” an internal affairs ministry official told The Yomiuri Shimbun.

The land ministry, which is responsible for road management, is also reluctant to scrap the tax due to concerns that doing so could lead to a shortage of funds needed to repair and upgrade aging infrastructure.

The tax is not imposed on electric vehicles, so there is the view it should be kept to help the nation’s decarbonization efforts.

However, electric vehicles are typically heavier than gasoline-powered cars, so they are more likely to damage roads as they drive along. Electric vehicle owners do not pay any gasoline tax, and they also pay less of the tax calculated based on a vehicle’s exhaust emission volumes. Some observers have pointed out that this has created a sense of unfairness.

Consequently, the industry ministry and the association have called for the introduction of a new tax system during the vehicle ownership stage that would account for vehicle weight and environmental performance. The Finance Ministry is poised to consider this issue as well.

Attention will be focused on whether the ruling parties can present concrete details, such as when such a tax would be introduced, in the tax system reform outline to be wrapped up by the end of the year.
 

 

The brewer of popular Japanese sake Dassai recently changed its company name to match its signature label, in a move aimed at boosting global brand recognition to expand sales abroad.

"The entire globe is our market," Dassai Inc CEO Kazuhiro Sakurai said, with the company aiming for overseas markets to eventually account for 70 percent of total sales, up from 40 percent currently, amid a decline at home.

Before the rebranding in June, the brewer's previous name, Asahi Shuzo Co, proved to be an obstacle in its expansion efforts abroad, often being confused with other companies.

"Asahi," meaning "sunrise" or "morning sun" is used widely in Japanese company names, including by one of the country's beverage giants.

While expressing regret over parting with the familiar name used by the brewer since 1948, Sakurai said he believes the change will "contribute to (the company's) hometown."

Dassai refers to the otters seen in the region in Yamaguchi Prefecture, western Japan, where the brewer is located, according to the company's website.

Popular for its mellow taste, Dassai sake was given as a gift to U.S. President Barack Obama by the late Japanese Prime Minister Shinzo Abe, whose constituency was in the prefecture.

Domestic shipments of sake have been declining amid reduced alcohol consumption, with the 390,000 kiloliters shipped in fiscal 2023 around a fifth of the peak level five decades earlier. In contrast, shipments overseas are continuing to expand amid a global boom in Japanese cuisine.

Moving forward, Dassai is determined to increase its presence in the United States and Europe, in addition to the Asian market that has long been its main overseas sales destination.

In 2023, the company established a brewery in the state of New York to produce and sell sake locally that uses U.S.-grown sake rice, which helps to minimize the impact of tariffs imposed by President Donald Trump.

More recently, at the World Exposition in Osaka, Dassai released a special sake brewed in collaboration with Austria that was produced with Johann Strauss II's "Lagoon Waltz" playing during the fermentation process.
 


 

Farm minister Shinjiro Koizumi said Saturday he will run in the presidential election of the Liberal Democratic Party next month, pledging to boost Japan's economy and revitalize the ruling party after its poor performance in recent national elections.

The 44-year-old son of former Prime Minister Junichiro Koizumi said he is willing to expand the current ruling bloc, while promising to deal with perceived issues related to foreign tourists and residents.

Koizumi became the fifth, and likely final, LDP lawmaker to officially announce their candidacy for the party's leadership election on Oct. 4, in which the successor to outgoing Prime Minister Shigeru Ishiba will be chosen. Campaigning will start on Monday.

He and former internal affairs minister Sanae Takaichi are considered the most likely winners, ahead of Chief Cabinet Secretary Yoshimasa Hayashi, former Foreign Minister Toshimitsu Motegi and former economic security minister Takayuki Kobayashi, according to recent media polls.

"The LDP is in a crisis," Koizumi told a press conference, pledging to promote economic measures as his "top priority" and bring about wage growth that outpaces rising living costs. He said he is targeting an average annual pay increase of 1 million yen ($6,800) by fiscal 2030.

Koizumi said he will draw up an "action plan" by the end of the year to take measures to respond to issues of overtourism, illegal foreign workers, land acquisition by foreign nonresidents and foreign residents not correctly engaging with the public health insurance system.

Issues regarding tourists and foreign residents were at the center of debate during the July 20 House of Councillors election, giving the small populist Sanseito opposition party, with its "Japanese First" slogan, a solid footing.

The LDP leadership contest will come as Ishiba, the party's head, said earlier this month that he would step down to take responsibility for major setbacks in recent national elections.

Koizumi reportedly persuaded Ishiba, who had sought to remain prime minister, to resign. After taking up the current post of agriculture, forestry and fisheries minister in May, Koizumi's efforts to address surging rice prices put him in the spotlight.

Koizumi has already secured backing from veteran lawmakers such as former Foreign Minister Taro Kono and Finance Minister Katsunobu Kato, who ran in last year's LDP leadership election. Kato will head the campaign headquarters at Koizumi's request.

The next LDP leader is not guaranteed to become prime minister, as the LDP-led ruling coalition with its junior partner, the Komeito party, does not hold a lower house majority.

The successful candidate needs to win a House of Representatives vote, with an opposition candidate set to stand against them.

The minority governing bloc needs support from opposition parties to pass budgets and bills, forcing the LDP, which has held power almost continuously since 1955, to consider how it can gain their support to retain control.

Koizumi said he will call for policy talks with opposition parties "widely," and deepen discussions about the framework of the ruling coalition.

As for measures to tackle price surges, Koizumi said he will consider all possible options in cooperation with opposition parties, while planning an economic package in a supplementary budget for the current fiscal year through March.

With campaign promises during recent elections by major opposition parties apparently in mind, Koizumi vowed to abolish the provisional gasoline tax rate as part of measures to address rising living costs and raise the tax-free annual income threshold.

On the diplomatic front, Koizumi said he will elevate Japan's alliance with the United States to "new heights" by building trust with President Donald Trump and described trilateral cooperation involving South Korea as "especially vital."

Koizumi, as well as his father, is known for his regular visits to the war-linked Yasukuni shrine in Tokyo, which honors convicted war criminals along with millions of war dead, a source of friction with China and South Korea that suffered under Japan's wartime aggression.

Asked if he would visit Yasukuni as prime minister, Koizumi said that he would make a decision "appropriately," adding that it is "natural" to pay respect and express gratitude to those who served the nation.
 
 

Financial assets held by households in Japan as of the end of June stood at a record high of 2,239 trillion yen as the balance of stocks and investment trust funds grew because of higher stock prices, the Bank of Japan said Thursday.

Of the total, shareholdings climbed 4.9 pct from a year before to 294 trillion yen, and investment trusts grew 9 pct to 140 trillion yen, both record highs, partly pushed up by inflows of funds into the new Nippon Individual Savings Account tax exemption program for small-lot investors.

The balance of cash and deposits shrank 0.1 pct to 1,126 trillion yen, the first decline since the end of December 2006, influenced by the spread of cashless payments, increased consumption due to high prices and a shift of funds to investment trusts.

Japanese government bonds held by the BOJ as of the end of June, excluding treasury discount bills, totaled 538 trillion yen, accounting for 50.94 pct of outstanding JGBs. The proportion fell for the seventh consecutive quarter.

The BOJ has been reducing the amount of JGB purchases in stages as part of efforts to normalize monetary policy following years of massive easing.
 
 

 

The world’s fondness for matcha is about to be tested by steep price increases.

Global demand for the powdered tea has skyrocketed around the world, fueled by consumer interest in its health benefits and by the bright green matcha lattes bubbling up on social media. In the U.S., retail sales of matcha are up 86% from three years ago, according to NIQ, a market research firm.

But the matcha market is troubled. In Japan, one of the biggest matcha producers, poor weather reduced this year’s harvest. Matcha is still plentiful in China, another major producer, but labor shortages and high demand have also raised prices there.

For Americans, there’s the added impact of tariffs. Imports from China are currently subject to a 37.5% tariff, while the U.S. has a 15% tariff on imports from Japan.

 

It’s not clear if tea will be exempted from tariffs because it’s a natural product that’s not grown in significant quantities in the U.S. — an accommodation that the Trump administration has made for cork from the European Union.

The Commerce Department and the U.S. Trade Representative didn’t respond to messages left by The Associated Press.

Aaron Vick, a senior tea buyer with California-based tea importer G.S. Haly, says he paid 75% more for the highest-grade 2025 crop of Japanese matcha, which will arrive in the U.S. later this fall.

 

He expects lower grades of matcha to cost 30% to 50% more. Chinese matcha — while generally cheaper than Japanese matcha — is also getting more expensive because of high demand, he said.

“People should expect an enormous increase in the price of matcha this year,” Vick said. “It’s going to be a bit of a tough ride for matcha devotees. They will have to show the depth of their commitment at the cash register.”

Even before this year’s harvest, growing demand was straining matcha supplies. Making matcha is precise and labor intensive.

Farmers grow tencha — a green tea leaf — in the shade. In the spring, the leaves are harvested, steamed, de-stemmed and de-veined and then stone ground into a fine powder. Tencha can be harvested again in the summer and fall, but the later harvests are generally of lower quality.

 

There are ways to cut corners, like using a jet mill, which grinds the leaves with high pressure air. But Japan has other issues, including a rapidly aging workforce and limited tencha production.

And despite Japanese agricultural ministry trying to coax tea growers to switch to tencha from regular green tea, many are reluctant to do so, concerned that the matcha boom will fade.

That’s giving an opening to China, where matcha originated but fell out of favor in the 14th century. Chinese matcha production has been growing in recent years to meet both domestic and international demand.

 

Chinese matcha has historically been considered inferior to Japanese matcha and used as a flavoring for things like matcha-flavored KitKat bars instead of as a drinking tea. But the quality is improving, according to Jason Walker, the marketing director at Firsd Tea, the New Jersey-based U.S. subsidiary of Zhejiang Tea Group, China’s largest tea exporter.

“We are seeing more and more interest in Chinese matcha because of capacity issues and changing perception,” Walker said. “It used to be the idea that it has to be Japanese matcha or nothing. But we have a good product too.”

Starbucks is among the companies using matcha from China for its lattes. The company said it also sources matcha from Japan and South Korea. Dunkin' and Dutch Bros. didn't respond when asked where they source the matcha.

Josh Mordecai, the supply chain director for London-based tea supplier Good & Proper Tea, said he is approached almost daily by Chinese matcha suppliers. For now, he only buys matcha from Japan, but the cost to acquire it has risen 40% so he’ll have to raise prices, he said.

 

Mordecai said he saw more demand for matcha in the last year than in the previous nine years combined. If matcha prices continue to rise, he wonders if consumers will switch to other tea varieties like hojicha, a roasted Japanese green tea.

“We’ll see if this is a bubble or not. Nothing stays on social media that long,” Mordecai said.

Julia Mills, a food and drink analyst for the market research company Mintel, expects the social media interest in matcha to die down. But she thinks matcha will remain on menus for a while.

Mills said matcha appeals to customers interested in wellness, since it contains antioxidants and l-theanine, an amino acid known for its calming effects, and it’s less caffeinated than coffee. Millennials and Generation Z customers are more likely to have tried matcha than others, Mills said.

The traditional way of preparing it, whisking the powder together with hot water in a small bowl, also appeals to drinkers who want to slow down and be more intentional, Mills said.

 

That’s true for Melissa Lindsay of San Francisco, who whisks up some matcha for herself every morning. Lindsay has noticed prices rising for her high-end matcha, but it’s a habit she’d find hard to quit.

“It’s not just a tea bag in water,” Lindsay said. “It’s a whole experience of making it to your liking.”

David Lau, the owner of Asha Tea House in San Francisco, hopes to keep customers drinking matcha by limiting price increases. Lau raised the price of his matcha latte by 50 cents after the cost the matcha he buys from Japan more than doubled. He’s also looking into alternate suppliers from China and elsewhere.

“We’re in the affordable luxury business, you know, just like any other specialty cafe. We want people to be able to come every day, and once you reach a certain price level, you start to price people out,” he said. “We want to be really cognizant and aware of not doing that.
 
 

U.S. President Donald Trump's lowered tariff of 15 percent on automobiles from Japan will take effect Tuesday, the Commerce Department said, about five months after his aggressive trade agenda began to heavily impact the industrial backbone of one of Washington's key allies.

The department announced the timing of the adjustment on Monday. After Trump imposed an additional auto tariff on national security grounds in April, the U.S. tariff rate for foreign-origin cars rose from 2.5 percent to 27.5 percent, squeezing the margins of Japanese automakers and other manufacturers.

The reduced tariff is part of a trade deal the Trump administration struck on July 22 with Japan, which in return has committed to investing massively in the United States and increasing imports of American agricultural products during the president's nonconsecutive second term.

Although the implementation of the lowered auto tariff will ease the impact on Japan's automotive sector, the 15 percent rate remains far higher than before and continues to weigh heavily on carmakers and related industries.

Trump signed an executive order on Sept. 4 formally implementing the trade agreement, which also granted Japan special treatment on what he calls "reciprocal" tariffs.

The department's notice to be published Tuesday said that as agreed by the two countries, Trump's additional 25 percent tariff imposed in May on major auto parts, including engines and transmissions, will also be cut to 15 percent for those coming from Japan.

The guidance further specified that civil aircraft and aircraft parts of Japan will no longer be subject to additional U.S. tariffs.

In 2024, Japan exported around 6 trillion yen worth of vehicles to the United States. Together with auto-parts exports, they accounted for one-third of Japan's total shipments to the world's largest economy, according to Japanese trade data.

The United States has agreed to grant the same tariff rate for automobiles from the European Union and South Korea as it does for Japan. The United States has reduced its tariff on British cars to 10 percent for up to 100,000 units annually.

On Aug. 7, Trump's modified country-specific tariff rates for goods from dozens of U.S. trading partners came into effect.

The United States currently imposes a 15 percent tariff on most imports from Japan, down from the 24 percent or 25 percent that Trump had threatened prior to the agreement.

Additionally, his trade team has agreed that imports from Japan with preexisting tariffs of 15 percent or higher will not face any additional duty, and levies on other goods will be capped at 15 percent.

However, the United States had yet to implement either the lowered auto tariff rate or the "no stacking" treatment for Japan.

The executive order, followed by necessary administrative procedures, finally enabled the United States to put the two commitments into practice.

With respect to any excess stacking tariffs collected from importers of Japanese goods under its new country-by-country tariff system, the Trump administration has said it will refund them dating back to Aug. 7.
 
 

 

Japan and the European Union agreed Tuesday to strengthen cooperation on economic security and free trade in response to challenges such as the high tariffs imposed by U.S. President Donald Trump's administration and their dependence on critical minerals from China.

The policy was affirmed at a meeting between Japanese Prime Minister Shigeru Ishiba and European Commission Executive Vice President Stephane Sejourne, who is in charge of industrial strategy.

In July, Japan and the EU launched a comprehensive alliance to enhance cooperation on trade, economic security and innovation.

 

"It is important to promote cooperation in the formation of economic policies and international rules, as well as concrete cooperation between Japanese and European companies in strategic fields as two pillars," Ishiba said.

The time has come to further deepen the cooperative relationship between Japan and the EU, Sejourne replied.
 
 

The average overall price of land in Japan as of July 1 rose 1.5 percent from a year earlier, marking the sharpest growth since 1992, boosted by solid housing demand and inbound tourism, government data showed Tuesday.

The price climbed for the fourth straight year, also lifted by robust investment demand from overseas on the back of the weak yen. Commercial land prices gained 2.8 percent with launches of new hotels and stores in urban areas amid a surge in foreign tourists.

"Investment demand from foreigners is growing for condominiums in central Tokyo and resort areas in Hokkaido" in northern Japan, said an official of the Ministry of Land, Infrastructure, Transport and Tourism.

Prices for residential land increased 1.0 percent due to strong demand for residences in urban areas, as well as for employee dormitories in resort areas. However, some places experienced sluggish growth due to soaring construction costs.

Among residential areas, Furano, near Hokkaido's ski areas and a popular destination for overseas investors developing resorts, saw the sharpest growth of 27.1 percent.

The ministry said that Chitose, in Hokkaido, which houses a Rapidus Corp. semiconductor plant, saw the fastest growth in commercial areas, at 31.4 percent.

The average land price increased by 4.3 percent in Tokyo, Osaka, and Nagoya, seeing larger growth in both residential and commercial areas.
For the third consecutive year, regional land prices increased, with residential areas rising 0.1 percent and commercial areas climbing 1.0 percent.
 
https://youtu.be/irje_0m6rYQ
 
Prices for residential land increased in 20 of Japan's 47 prefectures, up by three from the previous year, while 26 saw declines.

The Meidi-ya Ginza commercial building site in Tokyo's Ginza shopping district fetched the highest price per square meter of 46.9 million yen ($320,000), topping the list for the 20th consecutive year.

After 1992, land prices had been on a downward trend due to the bursting of the country's asset price bubble. However, they have been on an upward trend in recent years after recovering from the financial crisis triggered by the collapse of Lehman Brothers Holdings Inc. and the coronavirus pandemic.
 
 

GoPay users can now make payments at QRIS-enabled merchants in Japan, following Bank Indonesia’s move to expand its cross-border QR code payment system to the country in August 2025.

This allows Indonesian travelers to pay at Japanese merchants by scanning JPQR codes using the GoPay app.

GoPay, operated by GoTo Financial, already supports QRIS cross-border payments in Thailand, Malaysia, and Singapore.

Bank Indonesia has also started a pilot to connect QRIS with China’s digital payment systems, aiming for full launch by the end of 2025.

The central bank reported cross-border QRIS transactions reached 1.7 trillion rupiah (US$103.6 billion) as of June 2025.

GoTo Financial said the initiative supports Bank Indonesia’s efforts to expand QRIS cross-border access.
 

 

Major Japanese companies took a positive view of business conditions in the three months through September for the first time in two quarters, a government survey showed Thursday, reflecting recovering chip demand and easing concerns about U.S. tariffs.

The key index measuring sentiment among major Japanese companies regarding business conditions stood at 4.7 in the survey conducted by the Finance Ministry, a turnaround from minus 1.9 for the April-June quarter.

The business survey index is calculated by subtracting the percentage of companies reporting a deterioration from the percentage of those citing an improvement.

The quarterly survey also showed a reading of 3.8 for the manufacturing sector and 5.2 for the nonmanufacturing sector.

Asked about the outlook for the October-December quarter, major companies remained positive with the index at 4.3.

Around 11,000 companies responded to the Aug 15 survey, conducted after Japan and the United States reached a trade deal that reduced tariff rates to 15 percent for Japanese cars and other products.

While the agreement was not put into writing until early September, the deal helped to dispel uncertainty among Japanese companies about the impact on their businesses and the export-reliant economy, as U.S. President Donald Trump had threatened to impose a 25 percent "reciprocal" duty while the combined auto tariff rate had jumped to 27.5 percent.

Despite the improved sentiment among large companies, smaller firms remained pessimistic, with the index at minus 9.6, according to the survey.
 
 

Recently, McDonald’s Japan’s Happy Meals haven’t exactly been producing the sort of emotion promised in their name. Instead, for many people they’ve become a source of frustration, anger, and sadness as scalpers have been snapping up increasingly large portions of high-demand Happy Meals for the purpose of reselling the included toys.

The situation has gone beyond just disappointment from actual fans who wanted the toys for themselves or their kids. Verbal altercations between scalpers and staff, along with food, drinks, and their containers being left behind or littered in and around McDonald’s branches, are causing tension for non-Happy Meal customers as well as residents and other businesses in the communities surrounding McDonald’s branches.

The most recent debacle came roughly a month ago with the release of Pokémon card Happy Meals, with the situation being bad enough that McDonald’s Japan offered an official apology for how things went down and postponing indefinitely a planned One Piece trading card Happy Meal, which might end up just being cancelled entirely.

So with a Sanrio Happy Meal slated to go on sale this Friday, McDonald’s has announced a new set of purchase policies.

▼ The Happy Meal toys celebrate the 50th and 20th anniversaries, respectively, of Sanrio’s My Melody and Kuromi.

 

Sales of the Happy Meals (or Happy Sets, as they’re called in Japanese), will be limited to in-person orders, made either with a McDonald’s cashier or in-store ordering kiosk, or through the drive-through lane.

Happy Meals will not be available for purchase through the McDonald’s mobile order app (not even if the mobile order is placed for in-store pickup) or through McDonald’s delivery service. 

McDonald’s will also be restricting the sale of Happy Meals through third-party delivery services such as Uber Eats. In addition, each group of customers ordering together will be limited to a maximum of three Happy Meals.

These rules will apply not only to the My Melody and Kuromi Happy Meals, but also the Plarail Happy Meals, featuring a popular line of model trains from toymaker Takara Tomy, and the Happy Meal books for Sanrio’s Cinnamoroll and feline astronaut anime/manga character Kotetsu-kun, all of which are releasing on the same day, September 12.
 

While it’s nice to see McDonald’s trying something to counteract scalpers, there are a couple of gaps in this defensive plan.

For starters, while customers are limited to no more than three Happy Meals for their group per order, there doesn’t appear to be anything stopping scalpers from getting their three Happy Meals, then dashing off to other branches and getting three more at each of them.

In theory, they could even get back in line at the same branch, since as the staff mightn’t remember a scalper’s face, they can simply act like they’re placing their very first order for the Happy Meal.
 
But perhaps the weirder part of the plan is that these restrictions, as of right now, are only for the first day that the Happy Meals are on sale, with McDonald’s Japan saying they will be “judging what policy will be appropriate based on conditions [observed] on September 12.”

The intent behind this would seem to be to make sure that actual fans have a chance to secure their own Happy Meals at the start of the promotion, then loosen restrictions to allow for non-scalpers who might have been adversely affected by them (like, for example, a grandparent wanting to buy a Happy Meal for each of their four grandchildren).

 

In practice, unfortunately, it’s unlikely to work out that way. Because they have an economic incentive, scalpers are more likely than other customers to line up before opening time on release day for in-demand items, since genuine fans may have other responsibilities that prevent them from standing outside a McDonald’s at 5:30 in the morning.

That’s probably going to be especially true for this round of Happy Meal releases, since it’s happening on a Friday, when kids and adults who don’t make their money hoarding toys will be at school or work until at least the afternoon.
 
What’s more, the Happy Meals will only be on sale until September 15, with their second round available between September 26 and 28. With just four days of availability for the first sets of toys, odds are they’re going to be intensely targeted by scalpers during that period, so hopefully McDonald’s will make the decision to put some additional protections in place beyond just the first day.

 

Japanese companies are tackling the difficult task of hiring more disabled people as the statutory minimum employment rate for the disabled will be lifted to 2.7 pct next July from 2.5 pct at present.

While the labor market is favorable for job seekers, companies are required to follow a thorough selection process that takes into account traits of each candidate.

As they want newcomers to stay, companies are trying to improve the working environment by making their workplaces more accommodating and using assistive tools backed by information technology.

 

For new graduates joining the group in spring, food and beverage maker Kirin Holdings Co. allows disabled newcomers to choose between a career-track position and an area-restricted post involving no transfer.

"With the number of new graduates limited, the hike of the statutory minimum employment rate is gradually making it difficult to recruit students," an official said.
 


 

Tokyo stocks ended trading Wednesday at a record-high close for the first time in three weeks, days after Prime Minister Shigeru Ishiba announced his resignation.

The Nikkei 225 stock index finished the day up 0.87%, at 43,837.67, with a strong performance in the afternoon.

It broke the previous record close of 43,714.31, reached on Aug. 18.
The benchmark broke 44,000 for the first time in history on Tuesday morning, reaching 44,185.73 and breaking the previous intraday record — of 43,876.42 — hit on Aug. 19.

The yen traded steady at around ¥147.5 to the dollar on Wednesday after strengthening Tuesday.

SoftBank Group rose 7.28% on Wednesday, Hitachi was up 3.6% and Sumitomo Mitsui Financial Group gained 2.26%.

Tokyo stocks have rallied since the prime minister announced on Sunday that he will resign from the leadership of the ruling Liberal Democratic Party, while U.S. stocks hit fresh records overnight.

The Dow Jones Industrial Average rose by nearly 0.5% and hit a record at Tuesday’s closing, at 45,711.34. The S&P 500 was up 0.27%, also hitting a record high.

The U.S. Federal Reserve is expected to cut rates soon. Its next policy meeting will be held on Sept. 16 and 17.
 
 

Japan's biggest convenience store chain has introduced robots on a trial basis in a bid to tackle labor shortages and streamline in-store work.

The trial began at a 7-Eleven outlet in Tokyo. A robot is being used to restock the store's drink and alcohol shelves. Artificial intelligence allows the machine to determine which products need to be restocked based on sales data.

Seven-Eleven Japan says automating the work will streamline the restocking process that currently takes staff about 10 hours a week.

Other robot models are being used to clean the floors and windows.
A monitor near the self-checkout area displays a virtual store clerk. By speaking to it, customers can receive remote assistance from staff at other locations.

The company believes by using robots it will be able to cut 20 to 30 percent of daily in-store tasks.

It is aiming for full-scale introduction of the robots in the future.
 



 

Mitsubishi Electric Corp. announced Monday it will accept voluntary retirement applications from employees who meet certain criteria.

Regular employees aged 53 or older with at least three years of service and employees rehired after reaching retirement age are eligible.

While the company has not set a specific target for the number of people to voluntarily retire, about 8,000 regular employees and about 2,000 rehired employees out of its roughly 42,000 employees meet the eligibility criteria.

Mitsubishi Electric is performing well, projecting record net profits for the third consecutive fiscal year, which ends in March 2026. However, its workforce composition is skewed toward older employees. The voluntary retirement program therefore aims to optimize the composition of its personnel.

The application period runs from Dec. 15 to Jan. 9, 2026. Applicants will receive a special lump-sum payment in addition to their standard retirement benefits. The company also said it will provide job-placement assistance to eligible regular employees if they so desire.
 


 

Asian shares mostly rose with Japan's benchmark jumping higher in Monday morning trading, despite the looming political uncertainty after Prime Minister Shigeru Ishiba last night that he plans to resign.

Analysts said his announcement was expected for some time and welcomed it as moving things forward, although uncertainty remains as the ruling Liberal Democratic Party will need to hold an election to choose a new leader. Ishiba will remain prime minister until his successor is chosen and approved by parliament.

“Markets may react short-term to the temporary uncertainty of lame-duck leadership, but this may resolve once a new leader is chosen. Meanwhile, the LDP’s position as a minority leading party is unlikely to change anytime soon, and as such compromise will be the name of the policy-making game,” said Naomi Fink, chief global strategist at Amova Asset Management.

Japan's benchmark Nikkei 225 gained 1.5% to finish at 43,643.81. South Korea's Kospi gained 0.5% to 3,219.74. Australia's S&P/ASX 200 lost 0.2% to 8,849.60.

Hong Kong's Hang Seng edged up 0.8% to 25,632.00, while the Shanghai Composite rose 0.4% to 3,825.88.

Also Monday, Japan's Cabinet Office said the economy expanded at a stronger rate in the fiscal first quarter than previously estimated, at a seasonally adjusted 2.2% annualized rate, better than the earlier 1.0% rate as solid consumer spending and inventories lifted growth more than previously thought.

On Wall Street, stocks finished last week lower in Friday trading on uncertainty whether the U.S. job market has slowed by just enough to get the Federal Reserve to cut interest rates to help the economy, or by so much that a downturn may be on the way.

After rising to an early gain, the S&P 500 erased it and fell 0.3% below the all-time high it set the day before. The Dow Jones Industrial Average dropped 220 points, or 0.5%, after swinging between an early gain of nearly 150 points and a loss of 400. The Nasdaq composite edged down by less than 0.1%.

A report from the U.S. Labor Department said American employers hired fewer workers in August than economists expected. The government also said that earlier estimates for June and July overstated hiring by 21,000 jobs.

The disappointing numbers follow last month’s discouraging jobs update, along with other lackluster reports in intervening weeks, and traders are now betting on a 100% probability that the Fed will cut its main interest rate at its next meeting on Sept. 17.

In energy trading, benchmark U.S. crude added 91 cents to $62.78 a barrel. Brent crude, the international standard, rose 98 cents to $66.48 a barrel.
In currency trading, the U.S. dollar edged up to 148.03 Japanese yen from 147.39 yen. The euro cost $1.1722, inching down from $1.1723.
 
 

Back in 2016, we were very hard-pressed to put together an outfit using only items bought from convenience store chain FamilyMart. However, since then the company has greatly expanded on its fashionable offerings and even created their own brand called “Convenience Wear.”

The constantly growing line of shirts, pants, socks, underwear and more has gotten to the point where FamilyMart decided to phase out many of their stores’ eat-in areas to help make more room for it all. Now, they’re taking the biggest leap yet and opening a new store dedicated to their clothing.

This new retail outlet has been given the convenience store’s nickname of Famima and had its grand opening in Blue Front Shibaura in Minato Ward, Tokyo, on Sept 1. 

 

It carries nearly all of FamilyMart’s roughly 150 articles of clothing, including their most popular item: socks with stripes in the Family Mart color scheme, of which over 28 million pairs have been sold.

Also, in honor of Famima’s opening, items from the upcoming fall/winter line of Convenience Wear will be available for presale. Another unique feature of this shop is that, unlike in the convenience stores, where the clothing is all wrapped up, samples of the various items are hung and a mirror is set up so customers can feel the materials and check the sizes for themselves before buying.

▼ News report on the grand opening. It’s a small-scale store, but it’s a start.

https://youtu.be/EaPKWcTPBGs

It’s also a good opportunity to salute the person behind Convenience Wear. Hiromichi Ochiai is an award-winning fashion designer who also created the costumes for Japan in the handover portion of the Rio Olympic Games closing ceremony.

He’s worked with several international corporations, but currently challenges himself by taking Family Mart to a place beyond a mere convenience store.


▼ Hiromichi Ochiai

The convenience store industry in Japan as a whole is facing several headwinds at the moment. The constant need for expansion and 24-hour operation against competing chains is only exasperating an already shrinking labor market.

Also, rising costs that have seen quintessential items like rice balls nearly double in price are making customers rethink how much convenience is really worth.

Perhaps Famima will be FamilyMart’s contingency plan in the event the Japanese convenience store market takes a serious turn for the worse. In that case, we may someday be able to bore our grandkids by telling them that the hugely popular chain of clothing stores Famima used to be a convenience store.

 

Store information

Famima Blue Front Shibaura S Building Store / ファミマブルーフロント芝浦S棟店
Address: Tokyo-to, Minato-ku, Shibaura 1-1-1, Blue Front Shibaura S Building 3F
東京都 港区芝浦一丁目1番1 ブルーフロント芝浦S棟3階
Open 7 a.m.-10 p.m.
Closed Sundays and public holidays
 
 

Nippon Steel Corp said Thursday it has withdrawn its lawsuit filed against rival U.S. steelmaker Cleveland-Cliffs Inc. and others, putting an end to all U.S. litigation launched to prevent its plan to purchase United States Steel Corp. from being blocked.

Japan's largest steelmaker, which finalized the buyout of the iconic American steelmaker in June, said the lawsuit against Cleveland-Cliffs, its CEO Lourenco Goncalves and United Steelworkers union leader David McCall, who all had been opposed to the $14.1 billion purchase plan, has been dropped.

The union has also taken back its charge filed with the United States' National Labor Relations Board against U.S. Steel, claiming that the company imposed unfair labor practices on its members, Nippon Steel said.

In July, Nippon Steel said it had decided to pull another lawsuit filed to invalidate former U.S. President Joe Biden's order in January to block the acquisition deal.

Biden's order had been made on grounds that the buyout would create a national security risk but his successor Donald Trump modified it in June, saying such a risk could be mitigated under conditions set by the U.S. government.

In finalizing the deal, Nippon Steel signed a national security agreement with the Trump administration, with U.S. Steel issuing a "golden share" to the U.S. government that grants veto power over key management decisions.
 
 

A Bank of Japan deputy chief said Tuesday it would be "appropriate" to keep raising interest rates in step with improvements in economic conditions but warned of the possible negative impact of higher U.S. tariffs.

Despite three policy interest rate hikes since last March, "real interest rates have remained at significantly low levels as inflation has remained strong," said BOJ Deputy Governor Ryozo Himino in a speech in Kushiro, Hokkaido.

He said that the current inflation rate considerably exceeds the central bank's 2 percent target due to rising prices of rice and other items, but it is likely to decline as temporary factors recede and eventually stabilize at levels consistent with the goal.

"Risk and uncertainty will never disappear from the landscape for policymakers. We must continually assess the balance of risks, both upside and downside, and respond in a timely and appropriate manner," Himino said.

Regarding the potential impact of U.S. tariffs on the economy, Himino described the July agreement to reduce tariff rates as "a major step forward," yet he cautioned that "the global economy still faces a heightened level of uncertainty."

"Our baseline scenario assumes that the effects of trade policies will eventually materialize, leading to a slowdown in overseas economies and a decline in domestic corporate profits," Himino said.

Market players have been paying attention to when the BOJ will resume raising rates after holding its key rate at around 0.5 percent for the fourth consecutive meeting in July, citing the need to assess the impact of U.S. President Donald Trump's aggressive trade policies.

The BOJ is scheduled to hold its next two-day policy meeting starting Sept 18.
 
 

 

Suntory Holdings Ltd.’s announcement of the resignation of its chairman, Takeshi Niinami, has sent shockwaves through political, governmental and business circles.

Amid these ripples, the move is seen as an inevitable blow to the management of the company, whose primary business is food and beverages, including supplements.

“We expect to receive all sorts of criticisms from our consumers. I believe this will also impact our business performance,” Suntory President Nobuhiro Torii said, before bowing deeply, at an emergency press conference held in Tokyo on Tuesday.

Suntory’s sales in the health food and supplement sector reached ¥336.3 billion in the fiscal year ending in December 2024.

The company seems to be concerned that the top executive’s forced resignation over his alleged connection to illegal supplements could undermine consumer trust going forward.

Over the decade during which he served as president and chairman, Niinami led the company to significant growth. Its sales expanded by about ¥1 trillion, from ¥2.46 trillion in fiscal 2014 to ¥3.42 trillion in fiscal 2024 (based on International Financial Reporting Standards).

He was particularly focused on strengthening overseas operations, and he accelerated the integration of the U.S. company Beam Inc., which produces the Jim Beam and Maker’s Mark whiskey brands.

On Tuesday, Torii stressed that “there will be no changes to our management strategy.” Yet there is still the possibility of a certain amount of confusion.
For four consecutive generations since its foundation, Suntory’s top executives have come from its founding family. Niinami — who was chairman of Lawson Inc. when he became president in 2014 — was an exception to this rule.

Even after Torii, a member of the founding family, took over as president this March, Niinami continued to lead the company’s overseas operations as a chairman with representative authority. He also supported Torii, and the two of them worked in tandem to lead the company.

Nobutada Saji, the chairman who appointed Niinami as president, released a statement saying: “It is truly regrettable. That’s all there is to it.” The company plans to move from a two-person to a one-person chairmanship structure, under which Saji will retain his post but Niinami will not be replaced.

The ripple effects of the resignation have also spread to political, governmental and business circles, including the Japan Association of Corporate Executives (Keizai Doyukai).

Niinami has served as the representative director of the association since April 2023, with his term set to run until April 2027.

Japan Productivity Center Chairman Yoshimitsu Kobayashi, who served as the representative director of the association two terms before Niinami, told The Yomiuri Shimbun on Tuesday: “He carried a heavy responsibility. It’s hard to believe this all of a sudden.”

Niinami also serves as a private sector member of the Council on Economic and Fiscal Policy and the Council of New Form of Capitalism Realization, two government advisory councils both chaired by Prime Minister Shigeru Ishiba.

He has advocated for the importance of wage increases and capital investment as means to achieve economic growth and has also been an active voice for social security reform.

A Cabinet Office official, who serves as the secretariat for the economic and fiscal council, said, “[Niinami] had a strong presence and delivered powerful messages.”
 

 

Suntory Holdings Ltd Chairman Takeshi Niinami has stepped down due to an ongoing investigation over the alleged purchase of a dietary supplement suspected to be illegal, the major Japanese brewer company said Tuesday.

Niinami, a prominent 66-year-old Japanese business figure and former president of Lawson Inc, has led the Japan Association of Corporate Executives since April 2023 and has long served as a private-sector member of the government's key council on economic and fiscal policy.

Suntory Holdings President Nobuhiro Torii apologized for Niinami's resignation, which took effect Monday, during a press conference. The company stated that it concluded that Niinami's actions "demonstrated a lack of awareness regarding supplements" and "rendered him unable to continue in the key position" of chairman.

While noting that Niinami has insisted that he purchased the supplement believing it to be legal, the company said, "For the top executive management of Suntory Group, strict compliance with laws and regulations is fundamental, and exercising appropriate caution in purchasing supplements is an indispensable quality."

Suntory's board members unanimously agreed to demand Niinami's resignation. Niinami offered to quit for personal reasons and the company accepted his resignation as of Monday.

The company also noted that the supplement in question is not a Suntory Group product.

According to investigative sources, Niinami's house in Tokyo and other locations were searched by police on Aug 22, based on information provided by customs authorities in southwestern Japan regarding the import of a substance likely illegal in Japan.

The Fukuoka prefectural police did not find any illegal drugs during the search, but have questioned Niinami on a voluntary basis to see if he had any knowledge of the substance's illegality and to determine whether they should build a criminal case against him, the sources said.

Citing unnamed investigators, broadcaster Nippon TV said Niinami was suspected of importing products containing THC, an active ingredient in cannabis, from the United States.

During the search Niinami reportedly told police that he thought it was a legal product and that "a female acquaintance sent it to him unsolicited".
The product in question is seen as effective in treating backache and insomnia, they added.
 
 

Japan’s factory activity shrank in August on decreasing orders from overseas, a private sector survey showed on Monday, as the impact of U.S. tariffs began to squeeze the country’s export-reliant manufacturing sector.

The S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) was at 49.7 in August, which slightly undershot the flash reading of 49.9 but improved from 48.9 in July.

The figure has stayed below the 50.0 threshold, which indicates contraction, for two consecutive months.

While the pace of factory output contraction slowed and contributed to the headline index’s improvement, new orders continued to fall at the same pace as in July, given subdued market conditions, the survey showed.

“Of particular concern was a steeper drop in new export business, which fell at the sharpest pace in nearly a year-and-a-half,” said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence.

The decrease in new orders from overseas was the fastest since March 2024, and firms referred to weaker demand from key markets such as China, Europe and the United States, according to the survey.

In July, Japanese exports logged the biggest drop in more than four years led by declining car exports to the United States, and industrial production fell more than expected, government data have shown.

Tokyo and Washington struck a trade deal in July to lower U.S. tariffs on Japanese goods in exchange for a U.S.-bound $550 billion Japanese investment package, but uncertainties remain around the implementation of the agreed terms.

Elsewhere in the PMI survey, employment was a bright spot, with firms adding staff for the ninth straight month to prepare for potential future demand increases.

However, companies’ business confidence slipped to a three-month low, with respondents citing concerns about customer demand, an aging population and U.S. tariffs, according to the survey.

Input cost inflation inched up from July’s four-and-a-half-year low, but selling prices rose at the slowest pace in more than four years. Some firms said intense market competition and customer requests for discounts affected their pricing power, according to the survey.
 
 

Major Japanese automakers are trying to regain lost ground in Thailand, where they have been squeezed by the aggressive sales tactics of Chinese car companies. In Thailand, Japanese automakers’ share of new vehicle sales used to be more than 90% but may fall below 70% this year.

Japanese carmakers are trying to defend their stronghold by introducing low-priced hybrid vehicles (HVs), among other measures.


Eco performance, convenience

On Aug.21, Toyota Motor Corp. launched the small hybrid sedan Yaris Ativ HEV in Thailand. The model will be sold for 719,000 baht (¥3.24 million) until the end of the year, about 10% cheaper than the company’s Yaris Cross compact sport utility vehicle (SUV), which had previously been the cheapest HV.

“When considering practicality, HVs will continue to play an important role,” Toyota Motor Thailand Co. President Noriaki Yamashita said at a press conference in Bangkok, emphasizing the advantages of HVs, which combine environmental performance and the convenience of not requiring charging.

According to the Federation of Thai Industries, HVs — a field that Japanese automakers excel in — accounted for 20%, or 62,083 units, of the 302,694 new vehicles sold in Thailand from January to June, marking a 7.5% decrease from the same period last year.

On the other hand, the sales of new EVs, into which Chinese manufacturers are pouring considerable resources, increased by 1.6 times to 54,084 units. Toyota is set to boost HV sales with the introduction of a low-priced model to counter Chinese manufacturers.

Mitsubishi Motors Corp. also launched an HV version of its compact SUV, the Xforce, in May. The model is equipped with an audio system developed in collaboration with major audio-equipment maker Yamaha Corp. to attract younger consumers.

Mazda Motor Corp. plans to introduce five HV, EV and other models by 2027, and strengthen its production capacity at its plant in Thailand.



Discount sales

The market share of Japanese cars in Thailand stood at 92.3% in 2010, and continued to be high with a market share in the upper 80% range after 2011.

However, it plummeted to 77.8% in 2023 when the Thai government introduced comprehensive measures to promote the EV industry. It fell to 70.6% in the January-June period this year, down 6.6 percentage points from the same period last year.

“If the annual share falls below 70%, it will be difficult to stem the decline in the presence of Japanese vehicles,” a senior official of a Japanese automaker said.

The market share of both Toyota and Honda Motor Co. in the January-June period increased from the same period in 2022, but most other Japanese automakers, including Isuzu Motors Ltd., Mitsubishi and Mazda, saw theirs decrease.

The share of Chinese manufacturers, which were largely absent in the market in 2022, accounted for more than 16% in the January-June period, effectively “taking up” the share Japanese manufacturers lost.

BYD Co., China’s top-selling automaker, held a 7.8% share in the half-year period, ranking fourth behind Toyota, Isuzu and Honda.

BYD has aggressively expanded sales through large discounts. In a promotional campaign in August, BYD reduced the price of its compact car Dolphin to 499,900 baht, about 30% lower than the price at its launch in July 2023.

There are moves among Japanese automakers to strengthen EV sales in Thailand. Toyota, for instance, decided to expand imports of the bZ4X, an electric SUV, to Thailand from Japan.

However, since the carmakers are prioritizing HVs, which are popular in European nations and the United States, it is difficult to adopt a sales strategy heavily focused on EVs in Thailand alone.

As the EV market continues to expand in Thailand, it remains uncertain whether the Japanese firms can recover their market share with a strategy focused on HVs.
 
 

A survey of 195 major food companies by Teikoku Databank found that prices of 1,422 food and beverage items are scheduled to rise in September. This marks the ninth consecutive month of price increases this year.

By food category, the most common price increases are for condiments, primarily mayonnaise and sauces, with 427 items, followed by processed foods, including frozen foods and fish paste products, with 338, and confectionery, with 291 items, Teikoku Databank said.

All of these increases are attributed to rising raw material costs, as well as the shifting of logistics, labor and packaging costs.

Specifically, Kewpie has announced price increases for a total of 66 items, including household mayonnaise and dressings; J.

Oil Mills has announced price increases for all household oils and fats products, including canola oil; and Morinaga & Co has announced price increases for 54 items, primarily confectionery, including its DAR chocolate brand.

At present, the total number of items known to be subject to price increases for the whole of 2025 stands at 20,034. This is the first time in two years that the 20,000-item mark has been exceeded.

Teikoku said in its statement: "Logistics costs and labor costs due to wage increases are the main factors, rather than the weak yen."

It predicts that price hikes for food and beverages are likely to become long-term and permanent.
 


 

Toyota Motor Corp said Thursday its global sales and production for July hit records for the month on the back of robust demand for hybrids in North America and China, although the impact of the higher U.S. auto tariff has cast a shadow over its profit outlook.

But global production in the month fell at seven other major Japanese automakers, including Honda Motor Co and Nissan Motor Co, bringing the total for the eight firms down 1.7 percent from a year earlier to 2,015,932 units amid fierce competition in Asia and Europe.

Production in Toyota rose 5.3 percent from a year earlier to 846,771 units, and sales gained 4.8 percent to 899,449 units, the world's largest automaker by volume said.

By region, output in the United States increased 28.5 percent to 95,145 units, thanks to solid demand, marking a recovery from a drop due to production suspensions forced by recalls. In China, production rose 17.1 percent to 135,235 units as a new EV model drew customers.

In Japan, output slipped 5.5 percent to 292,041 units as operations at some plants were suspended after supply chains were disrupted by tsunami warnings and advisories issued after a powerful earthquake hit off Russia's Kamchatka Peninsula.

For the current fiscal year through March 2026, Toyota has forecast its net profit to fall 44.2 percent to 2.66 trillion yen as the higher U.S. auto tariff is expected to outweigh cost-cutting and an increase in sales of higher-margin models.

Honda said its July production slipped 7.0 percent from a year earlier to 277,635 units due to intensifying price competition in China, while output at the struggling Nissan fell 4.2 percent to 227,563 units. Suzuki Motor Corp edged down 0.2 percent to 293,158 units.

Toyota group minivehicle maker Daihatsu Motor Co logged a 6.7 percent decline to 129,001 units against a backdrop of a temporary shutdown of domestic plants in July.

Mazda Motor Corp has been scaling back production for the United States, with output falling 22.6 percent to 86,551 units.

The results come after Japan agreed to a 15 percent tariff on cars, down from the current 27.5 percent but above the 2.5 percent rate that existed before U.S. President Donald Trump imposed the sector-specific duty in April. The timing of the new rate taking effect remains unclear.

Meanwhile, combined global sales of the eight automakers rose 1.2 percent to 2,041,202 units, while domestic output fell 7.8 percent to 705,101 units.
 

 

After a string of operational incidents attributed to pilot error, the transport ministry issued a stern warning to ANA Wings Co., an ANA Group member, on Friday. The ministry has ordered the airline to submit a report on preventive measures by Sept. 19.

A runway incursion at Wakkanai Airport in Hokkaido on Aug. 20 is among the serious incidents. In this incident, two ANA Wings pilots violated the Civil Aeronautics Law by partially neglecting procedures to confirm the condition of the runway and landed on a runway where a bird control vehicle was traveling.

The pilots were reportedly unaware of the vehicle’s presence, which the Land, Infrastructure, Transport and Tourism Ministry views as particularly problematic

According to the ministry and other sources, in another serious incident in April last year, a plane initiated its descent too early when landing at Yonago Kitaro Airport in Tottori Prefecture. This triggered the ground proximity warning system, which alerts pilots to an abnormally low approach, forcing a go-around, also called an aborted landing, at the last moment.

In June of the same year, while a plane was descending over Wakayama Prefecture en route to Chubu Airport in Aichi Prefecture, cabin pressure was manually lowered to an excessive degree without adequate monitoring of cabin pressure conditions. About 10 passengers and crew members complained of ear pain and fatigue.

Apart from these serious incidents, four operational problems primarily caused by pilot errors occurred between April and June last year. ANA Wings subsequently implemented countermeasures, such as conducting emergency inspection flights to verify pilot skills.

In May this year, however, an aircraft mistakenly entered a taxiway closed for construction at Hiroshima Airport. The serious incident at Wakkanai Airport followed in August.

In response to this series of operational incidents, the ministry demanded ANA Wings conduct a comprehensive review of its safety management system and implement corrective measures, saying the safety management system is not functioning effectively across the entire company.
 
 

Major beef bowl chain Sukiya has announced that it will be cutting the prices of beef bowls and other items starting Sept 4.

This is the company's first price cut in 11 years. Sukiya said in a statement it hopes that this will lead to an increase in customers amid continued high prices.

According to the announcement on its website, the price of beef bowls, including tax, will be reduced by 30 yen each, from 480 yen for regular servings to 450 yen and from 680 yen to 650 yen for large servings.

Sales have been falling since the discovery of foreign objects in Sukiya's products in March this year.
 
 

Investigators raided the Tokyo office of House of Councillors member Akira Ishii of the Japan Innovation Party on suspicion of fraud involving state-funded salaries for secretaries.

Ishii, 68, is alleged to have illegally received a state-funded salary for a secretary who has no record of actually performing secretarial duties.

The special investigative squad of the Tokyo District Public Prosecutors’ Office searched Ishii’s office in the Diet members’ office building in Nagatacho, Tokyo, as well as other related locations.

It is expected to continue questioning office staff and others to uncover the situation, including the handling of the secretary’s salary, sources close to the investigators said.

Salaries for state-paid secretaries, who are classified as special public servants, are covered by public funds. Monthly payments range from about ¥300,000 to ¥600,000, depending on their age and years of service.

The secretary in question was employed by Ishii’s office and received a salary, but has no record of performing any secretarial duties, according to the sources. This raised suspicions of illegal payments.

The search began just after 10 a.m. Wednesday, with investigators entering the office in the Diet members’ building and other locations.

Ishii, who is from Toride, Ibaraki Prefecture, served as a city assembly member in Toride and a member of the House of Representatives. He was first elected to the upper house in 2016 and is now in his second term.

There have been a series of fraud cases involving Diet members and secretarial salaries since the late 1990s. As a result, when the law regarding Diet members’ salaries was revised in 2004, measures were taken to pay the salaries of state-paid secretaries directly to the individuals.

However, similar incidents have since been uncovered. Last year, then upper house member Megumi Hirose of the Liberal Democratic Party was indicted without arrest on suspicion of fraud, for allegedly swindling about ¥3.6 million in secretarial salaries and other funds. She was later found guilty.
 
 

Nissan Motor Co. has ended the production of its high-end sports car R35 GT-R, it announced Tuesday, citing such challenges as adhering to various countries’ emissions regulations and securing parts.

The R35, the car that made Nissan known as a high-tech carmaker, will not be in the company’s vehicle lineup for the first time in 18 years.

Nissan invited media to its Tochigi plant in Kaminokawa, Tochigi Prefecture, to see the final vehicle being produced. Representatives from parts suppliers and other business partners were also present.

The first-generation GT-R, which was based on its Skyline model but had race car specifications, was launched in 1969. After being discontinued twice, Nissan resumed selling the GT-R in 2007 as a separate model from the Skyline series.

The high-performance engines, which were used to win numerous races, were assembled by hand by nine skilled craftsmen at Nissan’s Yokohama Plant. Nissan has produced 48,000 units of the R35.

Nissan President Ivan Espinosa hinted at the possibility of resuming production of the GT-R in the future in a video message on Tuesday, saying that “this isn’t a goodbye to the GT-R forever.”
 


 

Japan’s Foreign Ministry will seek 874.3 billion yen in its budget request for fiscal 2026, up 15.3 pct from the fiscal 2025 initial budget, informed sources said Wednesday.

The ministry plans to allocate 44.1 billion yen to operations to deal with information warfare, such as analysis of information manipulation, including false information spread by foreign actors, and strategic dissemination of information abroad.

The budget request will also call for building information infrastructure and developing digital human resources.

On the economic front, the ministry plans to support Japanese companies’ overseas expansion through its diplomatic establishments and bolster economic security through what it calls the “offer-type” proactive approach to official development assistance projects.

A total of 321.8 billion yen will be earmarked for repairs to its overseas establishments and measures to strengthen the protection of expatriates.

The ministry will request 8.21 billion yen in the area of official security assistance, under which Japan provides defense equipment free of charge to like-minded countries.
 
 

Japanese Prime Minister Shigeru Ishiba and East Timor President Jose Ramos-Horta met in Tokyo on Tuesday and confirmed their countries' security and economic cooperation.

The two leaders agreed that Japan will provide East Timor with free defense equipment through its official security assistance program.

During the meeting, Ishiba congratulated East Timor on its upcoming accession to the Association of Southeast Asian Nations in October.
The prime minister voiced hopes to deepen bilateral cooperation in addressing regional and international issues.

The president praised the successful dialogue between Ishiba and South Korean President Lee Jae-myung at their summit on Saturday, emphasizing the importance of good relations between Japan and South Korea for peace in Southeast Asia.
 
 

Japan is set to tighten requirements for visas for foreign entrepreneurs, with a proposed six-fold increase in minimum capital to 30 million yen ($204,000) and a mandate to employ at least one full-time worker in the country, according to a ministerial draft released Tuesday.

The move follows a July upper house election in which an opposition anti-immigration party gained support, contributing to the ruling coalition losing its majority, News.Az reports, citing Reuters.

The justice ministry’s draft indicates that public feedback will be collected until September 24, with the new rules expected to be adopted in October.

The “business and management visa” allows foreign nationals to establish and manage a business in Japan, offering stays of up to five years, renewable options, and the possibility of bringing family members. Previously, applicants needed either a 5 million yen capital investment or two full-time staff and a viable business plan.

Designed to attract entrepreneurs and boost Japan’s global competitiveness, the visa also provides a pathway to permanent residency after 10 years, with at least five years on a work-qualifying visa.

At the end of 2024, around 41,600 people held such visas—up 11% from the previous year—with Chinese nationals making up more than half, according to immigration data.
 
 

Rice prices in Japan soared 90.7 percent in July year-on-year, official data showed Friday, but the rate of increase slowed from previous months offering some relief for Prime Minister Shigeru Ishiba.

Ishiba's future is uncertain after his coalition lost its majority in both chambers in elections this year, as voters angry about rising prices deserted his long-dominant Liberal Democratic Party.

Rice prices have skyrocketed in recent months because of supply problems linked to a very hot summer in 2023 and panic-buying after a "megaquake" warning last year, amongst other factors.

Overall, Japan's core inflation eased to 3.1 percent from 3.3 percent in June. But it remains above the Bank of Japan's two-percent target, cementing expectations that it will hike interest rates this year.

The reading, which excludes fresh food prices, was slightly above market expectations of 3.0 percent.

Stripping out energy too, consumer prices rose 3.4 percent -- the same as in June.

The BOJ last hiked interest rates in January but has been reluctant to tighten monetary policy further.

It sees above-target inflation as caused by temporary factors -- including the price of rice.

This month U.S. Treasury Secretary Scott Bessent added to pressure on the BOJ to hike, saying the central bank was "behind the curve" on inflation.

"Although inflation is likely to cool a bit further in the months ahead, it shouldn't prevent the Bank of Japan from resuming its tightening cycle in October," Abhijit Surya at Capital Economics said Friday.

In June the price of rice was 100.2 percent higher than a year earlier. In May the rate was 101.7 percent.

Ishiba has appointed a new farm minister and his government has released emergency stocks in an effort to bring prices down. Earlier this month it announced a change in its decades-old policy of encouraging farmers to grow crops other than rice.

U.S. President Donald Trump also wants Japan to import more American rice.

Last week, data showed that Japan's economy grew at an annualised pace of 1.0 percent in the second quarter.

The reading suggested the economy was suffering less than feared from U.S. tariffs.

But other data released Wednesday showed exports to the United States plunging 10.1 percent in July, with cars down 28.4 percent.
Trump initially imposed across-the-board tariffs of 10 percent on Japan, as well as levies of 27.5 percent on cars.

Japan's automobile industry, which includes giants such as Toyota and Honda, accounts for around eight percent of the country's jobs.

Japan last month secured a trade deal that cut threatened 25 percent "reciprocal" tariffs to 15 percent. The rate on Japanese cars was also cut to 15 percent, although this has yet to take effect.
 
 

Japanese companies are expanding their medical businesses in the African continent, which has a population of about 1.5 billion. Amid massive investments by Chinese competitors, the companies are trying to leverage their technical prowess and reliability to promote their businesses in African countries, which are said to be facing such challenges as widespread infectious diseases and insufficient medical systems.

The Yokohama Declaration, adopted on the final day of The Ninth Tokyo International Conference on African Development (TICAD 9), called for addressing problems such as communicable diseases in Africa as a necessity.

During the three-day conference, many Japanese companies involved in medical work set up booths at a business exposition held at the venue.
Fujifilm Corp. displayed a portable X-ray imaging device, which can be carried in a medium-sized suitcase.

The battery-powered device makes it possible to take images in rural farming areas that have no electricity. The device has been introduced in Zambia, where tuberculosis is widespread. The firm aims to introduce the device to other countries in cooperation with local health authorities.

A public relations official of the Ghana Investment Promotion Centre expressed anticipation, saying Japanese firms give a sense of security and have many unique technologies.


Nutrition for mothers and children

The population in Africa is projected to increase to about 2.5 billion, about one-quarter of the global population, by 2050. While the continent is called the “last frontier,” where rapid economic development is expected, it often faces large-scale prevalence of infectious diseases, resulting in severe shortages of medical devices and hygiene supplies.

NEC Corp. has developed an app for medical questions to support heath checkups and nutrition guidance for mothers and children in Ghana, where malnutrition poses a severe problem.

The system is designed to digitalize results of health checkups of pregnant women, among others, and analyze and evaluate health conditions, including malnutrition and serious anemia, using smartphones and other devices.

Infectious diseases account for about 30% of deaths in Ghana, with Malaria in particular having become a societal problem. Malnourished children are said to have a higher risk of developing serious symptoms. The company believes improving nutrition among mothers and children in the country will help address the problem.

Additionally, many of the sanitary products in Africa are said to be of low quality, making it difficult to spread their use. Unicharm Corp. began producing sanitary products in Kenya in cooperation with Toyota Tsusho Corp.

The companies plan to set up a local joint venture in an effort to sell and spread the use of sanitary products, which will be low-priced and made at a reliable level of quality.


Chinese firms make presence known

Chinese firms have a strong presence in Africa, supported by economic clout. They are aggressively investing in infrastructure and resource development as well as in the field of health care.

Investments have been able to progress even though the danger of the so-called debt trap, under which China strengthens its diplomatic and policy controls on borrower countries when they are unable to repay debts, has been pointed out.

Meanwhile, the administration of U.S. President Donald Trump has disbanded US Agency for International Development, making it likely the country’s assistance to Africa will further taper off.

Japanese companies, which have handled many infrastructure projects there in the past, have been lagging behind Chinese competitors in recent years due to a decline in the number of official development assistance programs.

According to sources close to trading companies, however, some African government officials and company executives have said they want to avoid businesses dependent on China.

This month, Marubeni Corp. invested in a major pharmaceutical firm, which is doing business mainly in Kenya. Marubeni President Masayuki Omoto said, “As Japanese businesses can offer high quality and credibility, we believe it is time for Japanese firms to act.”
 
 

The Finance Ministry plans to set the provisional rate for interest payments on government bonds at 2.6% for the next fiscal year, the highest level in 17 years, according to a local media report.

The accumulated interest rate, which serves as the basis for the initial calculation of debt-servicing expenses, will be set at 2.6% in the upcoming budget draft, the Yomiuri Shimbun reported Friday. A year ago, the initially proposed rate for the current fiscal year was 2.1%.

The ministry typically determines the rate by averaging recent market yields and then adding 1.1 percentage points to reflect historical fluctuations.

The 2.6% rate would be the highest since 2009, well above a 2.2% ministry forecast for fiscal 2026 issued back in January. The upward shift comes as Japanese government bond yields climb, partly reflecting investor doubts over the sustainability of large fiscal deficits.

On Friday, the 10-year benchmark briefly touched 1.615%, the most since 2008, while the 20-year yield briefly again reached 2.655%, matching its highest level since 1999.

Expectations of higher interest rates come as the Bank of Japan continues its cautious move away from loose policy. Over the past year, the central bank has raised interest rates from 0.25% to 0.5%, the highest level since 2008.

Rising yields will likely make financing costs more expensive for the world’s most indebted developed nation, even as the government commits to higher defense spending and wrestles with mounting social security costs.

Prime Minister Shigeru Ishiba’s minority government also faces pressure to extend cost-of-living relief, with opposition parties pushing for costly consumption tax cuts.

In its January forecasts, the ministry projected that the debt-servicing costs will likely jump 25% by the fiscal year 2028. The government is expected to compile budget requests from ministries by the end of August.
 
 

McDonald’s Japan runs a lot of cool Happy Meal promotions, but none of them stick around for all that long. For example, the Pokémon Happy Meals that went on sale August 8 are only going to be around for a few more days.

However, one Happy Meal bowing out means that another should be on the way, right?

Indeed that was the plan, as McDonald’s had another massively popular anime franchise partnership lined up, one that it had managed to keep an impressively tight lid on.

However, barely a week before the new Happy Meals were supposed to debut, McDonald’s has said that they’re being postponed indefinitely, even though they still hadn’t been officially announced.

In a press release issued on Wednesday, McDonald’s Japan says:
"A notice regarding the Happy Meal campaign which was scheduled to start on August 29

As part of a company reassessment of Happy Meal-related operations, we are postponing the Happy Meal campaign that was scheduled to begin on Friday, August 29.

During the period in which the campaign was scheduled to take place, we will instead be distributing toys from previous campaigns to Happy Meal customers."

It’s not until the very last line of the press release that McDonald’s unceremoniously mentions what the intended promotion was: One Piece Card Game Happy Meals.

Though it may not have as massive a player base as the Pokémon Trading Card Game, the collectible card game branch of the "One Piece" franchise is a very big deal too.

Not only does it feature the characters of one of the most popular and long-running anime/manga series of all time, the One Piece Card Game is published by Bandai, a company with a wealth of promotional event planning expertise.

▼ A display of "One Piece" cards

 

With "One Piece" being hugely popular with kids and young adults alike, there’s no doubt the Happy Meals would have had fans lining up to get one. Unfortunately, it’s also a certainty that scalpers would have been equally eager to snatch up as many as they could.
 
Sandwiched in the middle of McDonald’s Japan’s Pokémon toy giveaway this month was a period of three days when the Happy Meals also included exclusive Pokémon cards.

The resulting rush of resellers led to litter and food waste from people picking out the card from their order and then abandoning or dumping the food and packaging, as well as uncomfortably tense atmospheres as regular customers were forced into competition with for-profit card hoarders.
 
This led to McDonald’s Japan issuing an official apology and adopting new countermeasures to make it more difficult for scalpers to bulk-buy Happy Meals, but apparently the chain feels these are still insufficient for items with as high a projected demand as "One Piece" cards.

In the above tweet, the official One Piece Card Game account also let fans know about the postponement of the Happy Meals, which, to repeat, had not even been publicly announced yet. 

As an indefinite postponement, it’s unclear how confident McDonald’s is that the promotion can be salvaged, and there’s a possibility that this will turn out to be a de-facto cancellation of the One Piece card Happy Meals entirely, proving that, no matter what the real treasure turns out to be, it was most definitely not the resellers who ruined things along the way.
 

The operator of the Japanese convenience store chain Ministop said Monday it has suspended the sale of deli items at some 1,600 stores as expiry dates of certain foods prepared by its kitchens have been faked.

While no health issues have been reported, Ministop Co, a subsidiary of Japanese retail giant Aeon Co., halted sales of onigiri rice balls and bento lunches from Aug. 9 and other deli items from Monday.

"We sincerely apologize to customers who purchased handmade onigiri and bento (lunch boxes), as well as other concerned parties, for the significant inconvenience caused," Ministop said in a statement.

The firm found that some store workers extended expiry dates by delaying labels for one to two hours after items were prepared in in-house kitchens, while others removed expiry stickers and replaced them with false dates.

Operating 1,818 stores nationwide as of July, Ministop is one of Japan's major convenience store chains, though it trails far behind the top three, including Seven-Eleven with 21,770 outlets.

The misconduct has been discovered at 23 stores in Tokyo, Saitama, Aichi, Kyoto, Osaka, Hyogo and Fukuoka prefectures.
 
 

SoftBank Group is buying about 2% of Santa Clara, California's Intel, the storied U.S. chipmaker that has lost ground in recent years in the race to build better and faster semiconductors.

The deal is the biggest investment by a Japanese company into the United States since the two countries reached a trade agreement on July 22.

In a statement, the companies said that SoftBank Group would be buying $2 billion of Intel shares for $23 apiece.

The U.S. chipmaker has a market capitalization of about $103 billion, which means that SoftBank is buying about 2% of the company's shares outstanding. The exact ratio wasn't mentioned in the announcement.

The transaction is subject to customary closing conditions, the companies noted in the Tuesday news release. They didn’t specify the exact timing and conditions of the announced transaction.

If the deal is completed, SoftBank would become the fifth largest shareholder of Intel.

“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” SoftBank Chairman and CEO Masayoshi Son said in a statement on Tuesday.

The stock purchase follows a series of investment pledges by Son over the past several months.

With then-U.S. President-elect Donald Trump at Mar-a-Lago in Florida, Son, who founded SoftBank, pledged in December to invest $100 billion in the U.S. over the next four years.

Soon after Trump was sworn in as president in January, Son, OpenAI CEO Sam Altman and Oracle Executive Chairman Larry Ellison announced a $500 billion investment over the next four years in artificial intelligence in the U.S.

SoftBank Group had ¥4.2 trillion ($28 billion) in cash and equivalents at the end of June, according to the company’s consolidated financial report for the most recent quarter.

The company declined to confirm whether the Intel investment is part of Son's recent investment pledge.

Intel shares have lost half their value over the past five years. They were priced at $23.66 at market close Monday in the United States, and rose by about 5% following the news of the SoftBank Group deal in extended-hours trading.

SoftBank Group’s shares fell 2% in Tokyo trading on Tuesday morning, but are still up 96% over the past year.

Under the trade deal reached between Japan and the U.S. last month, Japanese government-affiliated financial institutions will provide up to $550 billion in loans, loan guarantees and equity investments for critical industries and technologies in the United States, in exchange for lower tariffs.

SoftBank Group declined to confirm whether the latest investment is connected to the $550 billion pledge outlined in the trade pact.

The latest investment pledge from the company came as the Trump administration contemplates buying 10% of Intel’s shares for over $10 billion, which would make the U.S. government the largest shareholder in the company.

The U.S. president has also suggested in recent days that new tariffs on semiconductors are coming soon, with the rate set as high as 300%.
 
 

Osaka Gas Co. has completed construction of an experimental facility for a technology to synthesize methane from water and carbon dioxide, the company announced.

The technology is called solid oxide electrolysis cell (SOEC) methanation, and it can synthesize methane, a major component of city gas, more efficiently than existing technology.

If put to practical use, the volume of electric power consumed in producing methane gas could be lower than with conventional methods, and thus production costs would be reduced.

SOEC methanation technology uses electric power from renewable energy sources. By electrolyzing water and CO2 at high temperatures, methane gas is produced from the hydrogen generated.

The heat generated by synthesizing methane will be reused in the electrolysis process, thus reducing energy loss.

Unlike conventional methods to produce methane, it is unnecessary to procure hydrogen gas from elsewhere.

Osaka Gas is enthusiastic about the production of such synthetic methane, termed e-methane, produced with renewable energy.

The experimental facility built in Konohana Ward, Osaka, combines equipment for the electrolysis of water vapor, which was developed by Toshiba Corp., with equipment for synthesizing methane, developed by Osaka Gas.

The facility is capable of producing an amount of methane gas equivalent to that consumed by 200 ordinary households.

Osaka Gas President Masataka Fujiwara said, “By introducing SOEC methanation, we want to accelerate the proliferation and expansion of the use of e-methane.”
 
 

Japan’s economy expanded an annualized 1.0% in the April-June quarter, government data showed on Friday, beating forecasts, though analysts expect the full hit to growth from U.S. tariffs will not be seen until future releases.

Resilient exports and capital expenditure underpinned the growth in the second quarter, likely supporting the case for the Bank of Japan to resume hiking interest rates and normalize monetary policy.

But economists warn that global economic uncertainties fueled by U.S. tariffs could weigh on the world’s fourth-largest economy in the coming months.

The increase in GDP compared with median market expectations for a 0.4% gain in a Reuters poll and followed a revised 0.6% rise in the previous quarter.

The reading translates into a quarterly rise of 0.3%, better than the median estimate of a 0.1% uptick.

Private consumption, which accounts for more than half of economic output, rose 0.2%, compared with a market estimate of a 0.1% increase. It grew at the same pace as the previous quarter.

Consumption and wage trends are key factors the BOJ is watching to gauge economic strength and determine the timing of its next interest rate action.
Capital spending, a key driver of domestic demand, rose 1.3% in the second quarter, versus a rise of 0.5% in the Reuters poll.

Net external demand, or exports minus imports, contributed 0.3 of a point to growth, versus an 0.8 point negative contribution in the January-March period.

The government last week cut its inflation-adjusted growth forecast for this fiscal year to 0.7% from the initially projected 1.2%, predicting U.S. tariffs would slow capital expenditure while persistent inflation weighs on consumption.

Exports have so far avoided a major hit from U.S. tariffs as Japanese automakers, the country’s biggest exporters, have mostly absorbed additional tariff costs by cutting prices in a bid to keep domestic plants running.

However, economists expect exports will suffer in the coming months as they start passing on costs to U.S. customers.
 
 

Japan eked out modest growth in the second quarter despite painful U.S. tariffs, official data showed Friday, in welcome news to embattled Prime Minister Shigeru Ishiba.

A preliminary estimate showed gross domestic product (GDP) in the world's number four economy growing 0.3 percent in the three months to June, above market forecasts of 0.1 percent.

The cabinet office data also saw a revision upwards for its reading for the previous quarter to show an expansion of 0.1 percent.

On an annualized basis, GDP grew 1.0 percent, beating market forecasts of 0.4 percent and following 0.6 percent in the last quarter.

The previous estimate was for a contraction and, without the revision, a second negative reading would have put Japan in technical recession.

The new figures are a fillip for Ishiba, whose future has been uncertain since the disastrous upper house elections in July.

With voters angry about the cost of living, his coalition lost its majority months after it suffered a similar catastrophe in the lower chamber.

An opinion poll this week by broadcaster NHK suggested, however, that more people want Ishiba to stay than to quit.

There is also no obvious successor to the 68-year-old leader, who took office in October, while the opposition is likely too fragmented to form an alternative government.

The economic growth came despite tariffs imposed by U.S. President Donald Trump being applied to Japanese imports into the United States.

Causing particular pain are levies of 27.5 percent on Japanese cars, a sector that accounts for eight percent of all jobs in Japan.

Japan last month secured a trade deal that cut a threatened 25 percent "reciprocal" tariffs on other Japanese goods to 15 percent.

The rate on Japanese cars was also cut to 15 percent, although to Tokyo's consternation, this has yet to take effect.

Toyota this month cut its annual net income forecast by 14 percent, projecting a $9.5 billion hit from the tariffs this year.

First-quarter profits halved at Honda, but the firm lowered its forecast for the tariff impact, as did electronics giant Sony.

Economist Yoshiki Shinke at Dai-ichi Life Research Institute said that Japan's economy still faces "many downside risks", with exports the major concern.

Automakers "are expected to rethink their pricing strategies, and there is a possibility they may move to raise prices in the future," Shinke said in a note.

"In such a case, sales volumes in the US are likely to decrease, and export volumes could also be pressured downward," Shinke said before the release of the data.

Trump's administration, meanwhile, is seen as pressuring the Bank of Japan (BOJ) to hike interest rates, which could put a brake on growth.
The BoJ has been reluctant to raise borrowing costs, seeing above-target inflation as caused by temporary factors.

"The Japanese have an inflation problem," U.S. Treasury Secretary Scott Bessent told Bloomberg TV after speaking to the BOJ governor.

"They are behind the curve, so they are going to be hiking," Bessent said.
Experts said the comments were likely driven by the Trump administration's desire to weaken the dollar and address rising yields on U.S. long-term bonds. Marcel Thieliant at Capital Economics said that despite the better-than-expected GDP figures, growth will "slow a bit over the coming quarters."

"Nonetheless, with inflation set to remain far above the BOJ's 2-percent target, we're increasingly confident in our forecast that the Bank will resume its tightening cycle in October," Thieliant said.
 
 

 

NHK has learned that Japanese authorities have confiscated about one ton of dried cannabis that was shipped to Tokyo Port from Vietnam.

It is the largest single seizure of illegal drugs in Japan, according to available statistics to date.

The health ministry's Narcotic Control Department has reportedly arrested three Vietnamese nationals for allegedly violating the narcotics control act. They are suspected of conspiring to smuggle cannabis for profit. One of the suspects is 51 years old and a resident of Ibaraki Prefecture.

The department is investigating whether an international drug-smuggling group was involved.

Investigators said Tokyo Customs agents found a large amount of dried cannabis in 200 cardboard boxes on board a cargo ship that had left Da Nang Port in Vietnam. It entered Tokyo Port in June.

The investigators said narcotic control officers tracked the illegal drug while it was being transferred from the port. They confiscated it in the northern Kanto region.

The investigators also said the shipment's intended destination was a company in Osaka City, western Japan.

The amount confiscated is more than double the 452 kilograms of dried cannabis that was seized nationwide by police, narcotic officers and other authorities during 2024.
 
 

McDonald's Co (Japan) has found that its campaign to give away Pokemon trading cards with its Happy Set combo meals prompted some customers to buy the meals in bulk solely to obtain the cards for resale, while discarding the food.

The fast-food chain, which revealed the blunder on Monday in a press release, had limited purchases of the Happy Set -- known as the Happy Meal outside of Japan -- to five per person and implemented measures to prevent the reselling of the cards at higher prices ahead of the three-day promotion from Saturday.

But the company admitted that its preparations were "insufficient" and issued an apology. The campaign ended on the first day as many outlets ran out of the cards.

Before the launch, McDonald's had also asked Japanese online flea market operator Mercari Inc to help deal with listings of the trading cards, a highly sought-after collectible item.

The fast-food chain said it will implement stricter measures in the future such as denying entry to people who attempt to buy large quantities of the combo meals.
 
 

Japanese character "Npochamu," marketed as a goofy and rotund yoghurt fairy, is aiming to capitalize on its popularity overseas, with trading house Itochu Corp gaining merchandising rights for countries and regions in Asia and North America.

Npochamu and friend Kimimaro are already a hit among young people in Japan and South Korea, with goods such as charms featuring their likeness dangling from bags on city streets, while clips of their antics have amassed millions of views online.

Created by Japanese illustrator Kawaisouni!, whose moniker comes from an expression roughly meaning "How pitiful!" in English, Npochamu started gaining attention in 2022 after the artist began posting content of the white marshmallow-like figure on social media.

Itochu will develop Npochamu through a Hong Kong-based investee firm that also holds the rights to the Finnish storybook characters known as The Moomins.

The Japanese conglomerate aims to increase the total annual distribution value of Npochamu content to around 150 billion yen ($1.02 billion) by 2029. Its current value is around 10 billion yen.

In Japan and South Korea, a separate Japanese firm holds the rights to and manages the sales of Npochamu goods such as plushies and keychains.

The Japanese government has positioned the export of goods and content like manga and video games as part of its "Cool Japan" strategy for economic growth.

According to government estimates, the amount of such exports in 2022 reached 4.7 trillion yen, rivaling the scale of the steel and semiconductor industries.
 
 

Every box of Pocky has a picture of the chocolate-covered pretzel sticks on it, but you could make the argument that it’s sort of redundant. In the 59 years that it’s been on the market, Pocky has become one of Japan’s most beloved sweet snacks, and you’d have a hard time finding someone in the country who doesn’t know what it looks like.

That familiarity runs in the opposite direction as well. Show someone a Pocky stick, outside of its packaging and with the product name nowhere in sight, and the vast majority of people in Japan will still be able to tell you, without hesitation “That’s Pocky.”

That’s been statistically proven, too. In 2023, Pocky manufacturer Glico conducted a survey of 1,036 people in Japan, between the ages of 16 and 79, and more than 90 percent could identify Pocky just by its shape. 

Emboldened by those results, Glico went on to apply for an official, legal trademark for the shape of Pocky, and it’s now been granted one by the Japanese government.

This sort of status, referred to as a 3D trademark, isn’t easy for a food product to obtain. The category is more commonly used for things such as characters or packaging with a uniquely defining shape, which is why you can’t go out and start selling plushies that are an exact match for Mickey Mouse or bottle your upstart soda in bottles that are precisely the same as Coca-Cola’s.

The hurdle for food items to obtain 3D trademarks is especially high, though, given that their shapes are sometimes simply the natural result of a necessary cooking process, not something purposely created by design.
Nevertheless, Glico was able to sufficiently convince Japan’s trademark authorities that Pocky’s shape is distinct and defining to the extent that the product can be sufficiently identified by its shape alone.

The trademark was granted on July 25, though Glico didn’t put out a press release until August.


Ostensibly, this would give Glico the power to block the sale of snacks with the same shape as Pocky from other companies. Following the acquisition of the trademark, a representative for Glico said “Moving forward, we will continue to appropriately protect and utilize our trademarks in order to develop and nurture this brand which has been loved for so long.”

How much this will actually change the landscape of store snack shelves in Japan remains to be seen. With Pocky being popular with fans of Japanese pop culture, and delicious things in general, around the world, there are obvious imitators available in other countries.

However, with Pocky’s 3-D trademark being granted by the Japanese government, it doesn’t really give Glico any significant leverage in halting the sale of copycat snacks overseas, though it would, in theory, bar such products from being imported into and sold in Japan.

Among products regularly sold in the Japanese domestic market, Pocky doesn’t have any exact imitators. The closest facsimile is Toppo, made by competitor Lotte, but its shape has contours that Pocky doesn’t, and Toppo are pretzel sticks that are filled with chocolate, not covered in it, which also gives them a different shape.

Oddly enough, it’s debatable whether or not the 3D trademark for Pocky would apply to the brand’s own coconut flavor, since its crunchy coconut shavings mean it doesn’t conform to the standard “Pocky shape.”
But regardless of how exactly Glico is planning to use Pocky’s 3D trademark, it really does have one now.

 

Competition is intensifying among Chinese automakers over electric vehicles sales in Indonesia and Thailand, the No. 1 and No. 3 automobile markets in Southeast Asia.

The increase in competition has been prompted by government incentives in Indonesia and Thailand aimed at boosting their EV industries.

However, the incentives bring few benefits to Japanese carmakers, which excel in the field of hybrid vehicles, raising concerns about a decline in their presence in the markets.


Wuling’s share plummeting

China’s SAIC-GM-Wuling Automobile Co. unveiled its Wuling Cortez Darion, a minivan the company plans to market soon, at an auto show near Jakarta in late July. In addition to an EV model of the minivan, the company also announced plans to launch a plug-in hybrid model. The vehicles will be produced at the company’s plant in Indonesia.

In 2023, Wuling held a 41% share of Indonesia’s EV sales, giving it the second largest share. But that figure plummeted to 30% in 2024 after it lost customers to BYD, a major Chinese EV manufacturer that entered the country around that time.

Executive Vice President Vincent Wong has said that Indonesia is the foundation of Wuling’s global strategy, and the company aims to bring back its customers by expanding its product lineup. EV sales in Indonesia in 2024 totaled 43,000 units, an increase of 2.5 times from the previous year.

However, those sales accounted for only 5% of the 866,000 total new vehicles sold that year, with the country’s insufficient charging infrastructure being the primary reason. This has prompted Chinese automakers, including Chery Automobile Co. and Beijing Auto Works, to also focus on non-EV models, such as hybrid vehicles.


Crisis among Japanese makers

In Thailand, EV sales topped 10% of the 573,000 total new vehicle sales in 2024. BYD secured a 40% share of the EV market in the country, boosting its sales by offering large discounts.

In the period from January to June this year, BYD ranked fourth in total new vehicle sales in the country with a 7.8% share, surpassing Mitsubishi Motors Corp. at 4.5%.

Japanese automakers entered the Thai market in the 1960s. In 2010, Japanese automakers had a market share of 92.3%. However, the figure fell below 80% in 2023 and dropped further to 70.6% between January and June this year.

Since 2022, the Thai government has been providing subsidies of up to 150,000 baht, or about ¥700,000, per EV sold to companies that establish new EV production bases in the country. It is also providing other preferential measures, such as corporate income tax breaks.

Many Chinese automakers are focusing on EVs, with BYD vying against Tesla, from the United States, for the top spot in global EV sales.

The companies have entered the Thai market with minimal initial investment and rapidly expanded sales by offering significant discounts, which exceed the subsidies they receive.

In Indonesia, where Japanese automakers had a nearly 90% market share in 2024, EV-boosting policies similar to Thailand’s have also been introduced. There is growing concern among Japanese carmakers that they may also lose market share to their Chinese competitors there in the future, just like in Thailand.

In an effort to counter the competition, Japanese automakers are expanding their lineup of hybrid vehicles in both countries. However, as government support for HVs is limited in the two countries, the automakers have yet to curb their declining sales.

Toyota Motor Corp. plans to begin EV production in both countries by the end of the year. Nevertheless, Japanese carmakers lag behind their competitors in bringing EVs to the market.
 
 

IQM Quantum Computers, a global leader in full-stack superconducting quantum computers, and TOYO Corporation have signed a distribution agreement to accelerate quantum computing adoption for the Japanese market.

With the agreement, Toyo, a leading company in measurement technology and a promoter of technological innovation in Japan, will market and sell IQM Spark, a 5-qubit system, and IQM Radiance, which ranges from 20-qubit to 150-qubit on-premises superconducting quantum computers.

It will also promote the cultivation of specialised talent in quantum computing technology and its societal implementation.

This partnership demonstrates a mutual commitment from both IQM and TOYO to support the initiatives of the Japanese government in achieving its quantum strategy. Among the key goals, the government is aiming at 10 million domestic quantum users by 2030. Backed by significant government investment, the Japanese quantum ecosystem is growing fast.

The partnership further underscores IQM’s commitment to advancing quantum technologies in the APAC region, complementing IQM’s current collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST).

“Japan has become one of the major countries in quantum computing, and our partnership with TOYO, a company with a proven track record of serving the Japanese industries with technological solutions, signals our strong commitment to providing our market-leading full-stack quantum computers and advancing the practical application of quantum computing across various industries,” said Mikko Välimäki, Co-CEO of IQM Quantum Computers.

“This partnership represents a significant milestone, highlighting the strong commitment from both companies and the close alignment between IQM’s technological focus areas and TOYO’s business domains.

By leveraging our collective strengths, we will accelerate the deployment of quantum computers at universities, research institutions, and companies across Japan.

Together, we will also nurture the quantum specialists and drive the social implementation of quantum technologies in Japan,” said Toshiya Kohno, President and CEO of TOYO Corporation.

By combining IQM’s quantum technology with its technology and expertise, TOYO is diversifying its business areas and plans to establish a specialised unit dedicated to quantum technology by the end of 2025.

The company aims to pioneer new fields of application for quantum computers and promote the creation of use cases and the development of new business models. Toy will also provide education and research opportunities using actual quantum systems and collaborate with related companies and organisations.