If humans eventually colonize the moon, the early settlers might toast their success with a bottle of sake, realizing the dream of brewer Asahi Shuzo Co.
Yamaguchi-based Asahi Shuzo, known for its Dassai sake brand, in February took a leap forward, unveiling at an event in Tokyo a bottle of high-end sake that it will attempt to brew in space.

The price for the 100-milliliter bottle of Dassai Moon is 110 million yen -- the going rate for an alcoholic beverage produced in space given that it will be the first of its kind.

Inspired by the U.S.-led Artemis moon exploration program and other efforts to establish a sustainable human presence on the Moon, Asahi Shuzo is serious about wanting the eventual inhabitants to be able to enjoy a low-gravity tipple.

"It's not a case of trying it out once for the sake of publicity but rather starting with the Moon and moving on to other possibilities," Asahi Shuzo President and CEO Kazuhiro Sakurai told Kyodo News.

Before any lunar endeavor, Asahi Shuzo will attempt to brew sake on the International Space Station where equipment will recreate the gravity of the moon's surface. The specialized brewing equipment and ingredients could be launched into orbit as early as September.

Speaking at the event in Tokyo, Japanese astronaut Soichi Noguchi said that he and other astronauts are excited by the project, especially as brewing sake on the Moon would be a step beyond what has been achieved in space so far.

"Until now, we were just taking something into space. Now they are actually going to make sake in space, which is a huge undertaking," Noguchi said.
Asahi Shuzo has made a habit of looking far beyond its base in the mountains of Iwakuni to seek new undertakings and new markets for its Dassai brand.

In early December, when much of the industry was congratulating itself after the traditional knowledge and skills used in sake-brewing were added to UNESCO's Intangible Cultural Heritage list, Asahi Shuzo was sending out updates about its aim to brew sake on the Moon.

While Sakurai recognizes the UNESCO listing as a potential boon for sake, he is wary of complacency.

"I believe that sake can and must evolve," he said. "There's a significant risk of becoming fixated on the history when, with a higher quality of sake, there is potential to reach bigger markets."

The bold ambitions of Asahi Shuzo came from a basic need to survive. When Sakurai's father took over the family business in 1984, Asahi Shuzo was selling directly to local stores with a consumer base confined to a radius of around five kilometers.

Across the sake industry, sales were in decline following the oil crisis of the early 1970s, a trend that would extend to the local population in the decades to come.

The new president decided to break out of Yamaguchi, and Asahi Shuzo took its sake to Tokyo, in the form of the high-end junmai daiginjo choice brew.

That year, the company recorded sales of around 100 million yen. Between October 2023 and November 2024, sales reached 19.5 billion yen, with 45 percent coming from exports.

Eyeing the world stage, in January, Asahi Shuzo announced more developments. From June, it will change its name to Dassai Inc. to strengthen its brand globally.

After the Oscars ceremony in Los Angeles on March 2, Dassai was served to Hollywood's elite at the Governors Ball afterparty -- the first time for a Japanese sake brand to feature on the cocktail menu as an event sponsor.

Despite the glamor and the globetrotting, the company maintains its roots at its headquarters in a remote corner of western Japan. The approach follows mountain roads through a landscape of farms and quiet villages.

Until, that is, the main brewery building comes into view. At 12-stories, it would not look out of place in central Tokyo. The on-site store has the interior of a boutique.

Inside, there is no veteran toji, or master brewer. Instead, Asahi Shuzo employs a young crew of brewers, largely focused on making junmai daiginjo sake.

Speaking in the brewery's analysis room in February, Sakurai was clad in an immaculate suit befitting his surroundings.

"I think it is important not to make sake the same way it was a hundred years ago," he said. "For us, making good sake means going beyond tradition. It means innovating and taking on new challenges."

Behind Sakurai, staff in lab coats carried out tests and analyzed data. At one end of the room, charts covered the wall, each one detailing the alcohol content and temperature, among other conditions in tanks containing fermenting sake mash.

"It allows us to see what's going on in each tank at a glance," Soya Uetsuki, chief of innovation and research, said. With around 200 tanks to be monitored each day, that is 200 graphs to take in.

Even with all the data and innovation, there are elements of sake-brewing at Asahi Shuzo that still demand the human touch.

Inside the koji muro, the room where koji mold is added to steamed rice, the work of separating rice grains is hot, sweaty and hands-on. In the fermentation room, staff plunge poles deep into tanks to stir the sake mash within, and in doing so release fruity aromas.

At the end of the brewing process, the president and others gather to sample the pressed sake. Objectivity is key. "This is not a discussion about how delicious it is, it's about judging whether or not it can be shipped," Uetsugi said.

As for where Dassai will be shipped next and in what surroundings it will be served, there appears to be no limits. New York, Hollywood. The moon.

"It's so interesting to see how our sake can go out into the world and interact with the cultures and people of other countries to create something new," Sakurai said.


© KYODO
 
 

Japan will not use its US Treasury holdings as leverage in upcoming trade talks with the US, scheduled for April 17.

Itsunori Onodera, policy chief of the Liberal Democratic Party, emphasized that Japan, as a US ally, wants to avoid actions that could disrupt financial markets. “Causing market disruption is certainly not a good idea,” he said.

This announcement follows Japan’s pullback from US Treasuries last week, which caused long-term yields to rise.

The move has sparked speculation that global reserve managers, including China, might reconsider investments in US government debt amid trade tensions.

Japan is seeking an exemption from the US tariffs imposed on April 9, which include a 24% tariff on Japanese goods and a 25% tariff on Japan’s auto industry. The US, in turn, is asking for concessions on agricultural products and LNG.

 
1️. Japan faces unprecedented auto industry impact despite alliance status

Japan’s response to the tariffs reveals the difficult position of a traditional US ally facing significant economic damage.

The 25% tariffs on its vital auto industry could cost Japanese manufacturers an estimated $24 billion according to industry analysis.

This represents a serious threat to Japan’s economy, with UN trade agencies projecting potential losses of $17 billion in car exports alone.

The Japanese government’s explicit statement that they “would not intentionally take action against U.S. government bonds” highlights their delicate position, needing to defend economic interests while maintaining alliance obligations.

Japan’s automotive industry has relied heavily on exports to the US market, with companies like Toyota and Honda now facing dramatically reduced profitability that threatens their global business models.

 
2. New tariffs mark historic shift in US trade policy

The current tariffs represent a significant protectionist shift in American trade policy.

The average effective US tariff rate has risen to 22.5%, reaching levels not seen since 1909 according to economic analysis by Capital Group.

These tariffs end over three decades of relatively free trade in North America, fundamentally altering the economic landscape that Japanese companies had built their strategies around.

The broader regional impact is significant, with Japan highlighting the challenges faced by ASEAN neighbors who are also impacted by the new system.

This protectionist approach marks a departure from the multilateral trade framework Japan and other countries had operated within since World War II.
 

3. Economic ripple effects extend beyond direct tariff costs
 
The tariffs will trigger complex economic consequences beyond just the immediate impact on Japanese exports.

Analysts project that the tariffs will increase US consumer prices by 2.3% on average, resulting in approximately $3,800 in lost purchasing power per American household.

For Japanese automakers specifically, the situation forces difficult choices about production locations, with many having invested heavily in Mexican manufacturing facilities that are now disadvantaged by the new tariff structure.

The Japan Automobile Manufacturers Association has warned that production adjustments will be necessary, potentially affecting jobs both in Japan and at Japanese-owned plants in the US.

These interconnected impacts demonstrate how modern global supply chains make tariff impacts far more complex than in previous eras of trade conflict.
 

 

World Expo opened on Sunday with 160 countries and regions showcasing their technology, culture and food, with host Japan hoping to provide the world with some much-needed hope.

Expo 2025 opened with the theme of life, world and the future, and Japan hopes to bring unity and portray a future society.
 
But the event's celebrations have been somewhat dampened by U.S. President Donald Trump’s recent tariff threats, which add to global tension and uncertainty.
 
Japanese Prime Minister Shigeru Ishiba, speaking at the opening ceremony expressed his hope that the event will help restore global unity in a world plagued by conflicts and trade wars.
 
Expo is also known as a World's Fair, and the phenomenon, which brought the Eiffel Tower to Paris, began with London's 1851 Crystal Palace exhibition and is held every five years.
 
The 2020 edition in Dubai was postponed by the COVID-19 pandemic, so Osaka Expo organisers say it will "restore much-needed connections" and "provide the opportunity to create a better tomorrow."
 
It is Osaka's second world expo after the 1970 event that scored a huge success and attracted 64 million visitors — a record until Shanghai in 2010.
This time, Japan has faced dwindling public interest, and support and was hit by soaring construction costs due to the weaker yen.

The cost nearly doubled from the initial estimate to 235 billion yen ($1.64 billion), about 14% of which went to the ring, triggering criticisms from many Japanese over the government's use of their tax money.
 
 

 

The East Japan Railway Co. (JR East) announced Tuesday it plans to experimentally deploy a system that will use facial recognition technology to allow passengers to move through ticket gates for the Joetsu Shinkansen bullet train line at Niigata and Nagaoka stations.

The company will confirm the system’s accuracy and determine the best position to install the devices, among other measures, with the goal of establishing ‘walk-through’ ticket gates within the next 10 years.

The experiment will start around autumn this year and continue until spring 2026, and JR East will ask for participation from passengers who have passes for the Shinkansen line section between the two stations.

At Niigata Station, facial recognition devices from NEC Corp. will be attached to existing ticket gates. At Nagaoka Station, new gates will be installed that will incorporate facial recognition devices from Panasonic Connect Co.

Facial recognition systems for passengers have already been introduced in airports in Japan and abroad and are scheduled to be used to allow staff through entrance gates at the 2025 Osaka-Kansai Expo.

If facial recognition systems for train lines are realized, passengers will be able to pass through ticket wickets without using IC cards or paper tickets, even if their hands are occupied by large baggage or baby strollers.

JR East President Yoichi Kise said at a press conference Tuesday, “The system will be so easy to use that it will work even for passengers wearing glasses or masks.”
 
 

Japanese Prime Minister Shigeru Ishiba and NATO chief Mark Rutte vowed Wednesday to further deepen military ties while stressing the need to tackle together growing threats from China, North Korea and Russia.

Japan, which has stepped up defense ties with the United States, its key ally, and other friendly nations in the Indo-Pacific, has also sought closer ties with NATO, fearing that Russia’s invasion of Ukraine could embolden China’s assertiveness in the region.

“A stronger NATO will benefit Japan greatly,” Ishiba told a joint news conference after his talks with Rutte, who was in Japan for the first time since becoming secretary general of the organization in October.

In a joint statement released after their talks, Ishiba and Rutte said strengthening defense industrial cooperation is “a shared priority” and that they plan to focus on developing dual-use and advanced technologies while enhancing their standardization.

They also agreed to step up cooperation in cyber defense and space, as well as joint military exercises. Drones and Artificial Intelligence were also discussed.

Ishiba and Rutte also stated they “strongly condemn” growing military ties between North Korea and Russia, including Russia’s use of North Korean missiles and troops against Ukraine, while expressing concern about China’s support for the Russian defense industrial base.

Russia continues to wage war against Ukraine while maintaining its ambitions to “reshape European security,” Rutte said.

Both also called for upholding a free and open Indo-Pacific and opposed unilateral attempts to change the status quo by force in the East and South China Seas, and encouraged Beijing to improve the transparency of its military and to cooperate in arms control, calling on peace and stability across the Taiwan Strait.

The NATO chief told reporters that China has been pursuing a major military buildup, seeking to control key technologies, critical infrastructure and supply chains, and continues to carry out “destabilizing activities” in the Indo-Pacific.

Rutte praised Japan’s contributions to support Ukraine in the war against Russia, and welcomed Tokyo’s willingness to participate in a NATO command for the support of Ukraine, expressed by Japanese Defense Minister Gen Nakatani on Tuesday.

The NATO Security Assistance and Training for Ukraine, or NSATU, is headquartered at a U.S. military base in Wiesbaden, Germany. Rutte said NSATU “helps Ukraine fight today but also for Ukraine to build up its armed forces for tomorrow.”

Details of Japan’s participation still need to be discussed, but the Japanese Self Defense Force, if stationed, is not expected to involve combative roles because of the country’s postwar pacifist principles.
 
 

Japan will sell more rice from its emergency stockpile through July in an attempt to stabilise soaring prices, the agricultural minister said Wednesday.

After rice prices nearly doubled year-on-year, the government began auctioning its stockpile last month -- the first time since it was started in 1995.

"In order to stabilise rice prices that have soared, the government will sell off its reserve rice every month until this summer" when newly harvested rice enters the market, agricultural minister Taku Eto said.

The shortages have been driven by factors including poor harvests due to hot weather in 2023 and panic-buying prompted by a "megaquake" warning last year.

Record numbers of tourists have also been blamed for a rise in consumption.
And some businesses are thought to be keeping their inventories and waiting for the most opportune time to sell.

The government has so far released around 210,000 tonnes of rice.
The next auction of 100,000 tons will take place in the week of April 21.
The retail price for five kilograms of rice in the last week of March was 4,206 yen ($29), up 104.5 percent year-on-year.

Japan is aiming to boost its rice exports almost eightfold to 350,000 tonnes by 2030, the government said last month.

Rice consumption in Japan has more than halved over the past 60 years as diets have changed to include more bread, noodles and other energy sources.

The new target is part of a long-term national policy to boost overseas rice shipments and make farming it more efficient as the country's ageing population shrinks.

Rice also appears to have been a factor in US President Donald Trump's hefty tariffs of 24 percent on Japanese imports into the United States.

The White House has accused Japan of imposing a 700-percent tariff on US rice imports, a claim that Eto was quoted as calling "incomprehensible".
 
 

Unit sales of Fujifilm Corp's "instax" instant camera series have exceeded 100 million, the company said Tuesday, with the brand's roughly 30-year run continuing to draw interest both in Japan and abroad as new models go into production.

The first-generation instax camera debuted in 1998, becoming especially popular among young people. Even as digital and later smartphone photography became the norm, the series has endured thanks to its instant film printing function -- a nostalgic element.

For the year through March 2024, sales reached a record of around 150 billion yen. Sold in more than 100 countries and regions, over 90 percent of total revenue was driven by overseas markets, the firm said.

Fujifilm is also expanding its product lineup with palm-sized models that are easy to carry, along with devices that print smartphone photos onto instax film. In Japan, instax is used at a variety of events, such as trips and parties including weddings.
 
 

Anxiety over tariff policies announced by the administration of U.S. President Donald Trump is spreading throughout Japan.

Regional economic assessments remained unchanged in all nine regions of the country in the Bank of Japan’s April Regional Economic Report released on Monday. However, it pointed out uncertainty about the future due to the tariff policy is increasing.


Grim views

General managers indicated concern from firms about the U.S. trade policy’s impact on production and corporate earnings at a general managers’ meeting of the BOJ’s branches.

Some reported a grim corporate outlook at the meeting, which took place at the bank’s head office prior to the release of the report.

Every three months, the BOJ gathers branch general managers from across the country to share and study regional economic trends. Each branch already completed their research by around mid-March, so the report and regional economic assessments do not take into account the impact of the reciprocal tariffs that Trump announced in detail on April 2.

Nevertheless, the report contained a series of anxious comments.

“Amidst growing uncertainty, some companies are beginning to take a wait-and-see approach to capital investment, which is putting downward pressure on production,” said a person from the electrical machinery industry in the Kyoto Branch.

Another person from production machinery industry in the Takamatsu Branch area said, “With no sign of where the U.S. trade policy will ultimately go, overseas customers are continuing to hold off on purchases.”

Atsushi Dono, the general manager of the Nagoya Branch, stressed at a press conference at the BOJ’s head office in Tokyo on Monday that “the impact of the reciprocal tariffs on production and exports must be closely monitored.”
The Nagoya Branch oversees the Tokai region, which is home to manufacturing industries.

Kenji Sakuta, general manager of Fukuoka Branch, also stated that “concerns are spreading throughout the export manufacturing sector.”


Positive personal consumption

According to the report, there were many positive views on current personal consumption.

In addition to strong consumption related to events, some said that service consumption was also firm due to strong demand from visitors to Japan.

“Sales of high-end items such as jewelry were strong mainly among wealthy individuals and visitors to Japan,” said a representative of a department store in the Nagoya branch’s jurisdiction, according to the report.
 
 

Shares of U.S. Steel are hitting a 52-week high after President Donald Trump ordered a new national security review of Nippon Steel's proposed bid to buy U.S. Steel for nearly $15 billion.

President Joe Biden blocked the deal just before leaving office and Trump had vowed to do the same in previous months. Late Monday Trump ordered the Committee on Foreign Investment in the United States to review the transaction “to assist me in determining whether further action in this matter may be appropriate.”

Shares soared 16% Monday and rose modestly Tuesday.
The confidential review will look for potential national security risks from the proposed deal and the U.S. will give Nippon and U.S. Steel time to respond to any concerns.

CFIUS will have 45 days to submit a recommendation to Trump detailing whether any measures proposed by Nippon and U.S. Steel are sufficient to mitigate identified risks.

Ancora Holdings Group, which has a minority stake in U.S. Steel, said Tuesday that it won't stand in the way of Nippon's proposed bid for the company. The asset manager also said that it wants U.S. Steel to delay its annual shareholders meeting, which is scheduled for May 6, until after June 18 in order to give shareholders time to learn the outcome of the 45-day review by CFIUS.

“There is no legitimate reason for U.S. Steel to rush to hold its Annual Meeting before the governmental review concludes,” Ancora said in a statement.

Nippon Steel made a nearly $15 billion offer to buy U.S. Steel in 2023, giving rise to a political issue in the 2024 presidential election as the fate of the Pittsburgh steelmaker potentially carried with it the swing state of Pennsylvania.

Biden agreed with the United Steelworkers in seeking to block the merger, while Trump as a candidate said he was in outright opposition to the sale.

CFIUS sent its long-awaited report on national security concerns about the merger to Biden late last year. But the government panel failed to reach a consensus as to whether there were national security issues.

A month later Biden blocked the proposed transaction, affirming an earlier vow to prevent the acquisition of Steeltown USA’s most storied company.

Biden previously came out against the deal during the presidential campaign — and was backed by the United Steelworkers, concerned over whether the company would honor existing labor agreements or slash jobs, as well as over the firm’s financial transparency.

Nippon and U.S. Steel countered by filing a federal lawsuit shortly after, challenging Biden's decision to block the proposed acquisition of the Pittsburgh company and claiming that the head of the Steelworkers union and a rival steelmaker worked together to scuttle the buyout.

In February Trump suggested that Nippon Steel would no longer buy U.S. Steel as planned, but the Japanese company would instead invest in the symbolically important American business.
 
 

Honda's executive vice president resigned on Monday over "an allegation of inappropriate conduct", the Japanese automaker said.

The incident occurred "during a social gathering outside of work hours", Honda said in a statement without specifying what accusations were made against Shinji Aoyama, who is also the company's director.

"It is deeply regrettable that an individual positioned as a leader in the management of the company, and who is expected to set an example for the respect of human rights... has become the subject of an allegation of conduct contrary to these principles," the company statement said.

Honda declined to reveal details of Aoyama's conduct, citing privacy concerns for the victim, Kyodo news agency reported.

The firm's audit committee had investigated the incident and presented a disciplinary action plan to the board of directors, who were "scheduled to make a decision".

However, Aoyama submitted his resignation letter before the board had made any move, the statement said.

"The Company's Board of Directors has determined that it is appropriate for Mr. Aoyama to resign from his position," it said.

Honda President Toshihiro Mibe will voluntarily return 20 percent of his monthly compensation for two months due to "the seriousness of this matter", the company said.

"The company sincerely apologises for any discomfort caused by such conduct, and for the significant disturbance and concern it has caused to all stakeholders."
 

 

Japan's Nikkei share average closed 6% higher on Tuesday, recovering from a 1-1/2-year low hit in the previous session, as investors scooped up stocks, encouraged by signs of a recovery on Wall Street.

The Nikkei index climbed 6.03% to 33,012.58, marking its sharpest daily percentage gain since August 6.

The broader Topix also recorded a more than 6% gain, closing at 2,432.02.
"Investors bought back stocks as they thought the shares were oversold. They saw signs of a market recovery as U.S. stock futures rose in Japan trade," said Takamasa Ikeda, senior portfolio manager, GCI Asset Management.

The S&P 500 and the Dow closed lower, while the technology-heavy Nasdaq posted marginal gains on Monday following a roller coaster session.
U.S. semiconductor index climbed 2.7% overnight, while S&P and Nasdaq futures each rose more than 1% in Asia trade on Tuesday, signalling cues of a recovery.

Both the Nikkei and Topix are down roughly 13% from levels before U.S. President Donald Trump's Liberation Day tariff announcement, raising concerns about the impact on export-dependent Japan.

Japanese Prime Minister Shigeru Ishiba said on Monday that during a phone call with Trump, he expressed disappointment with the tariff policies and urged him to reconsider.

The gains are not sustainable as there are still uncertainties surrounding the Japanese corporate outlook and the global economy, said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.

"I think today's jump was led by speculative investors who bought futures. And their bets will control the market move for a while," said Fujiwara.
Nikkei and Topix futures surged overnight trading, triggering trading halt by a circuit breaker by the Japan Exchange Group's Osaka bourse.

Among individual stocks, chip-making equipment maker Tokyo Electron jumped 8.7% and chip-testing equipment maker Advantest surged 11.8%.
Cable maker Fujikura a gauge for data centre investments, surged 19.4%.
Bank shares advanced, with Mitsubishi UFJ Financial Group surging 10.7% and Mizuho Financial Group up 13.5%.

All 33 industry sub-indexes of the Tokyo Stock Exchange (TSE) posted gains, with the non-ferrous sector jumping nearly 12% to become the top gainer.

Of the more than 1,600 shares traded on the TSE's prime market, 99% closed in green.
 
 

Asian shares nosedived on Monday after the meltdown Friday on Wall Street over U.S. President Donald Trump's tariff hikes and the backlash from Beijing.

U.S. futures also signaled further weakness. The future for the S&P 500 lost 4.2% while that for the Dow Jones Industrial Average shed 3.5%. The future for the Nasdaq lost 5.3%.

Tokyo’s Nikkei 225 index lost nearly 8% shortly after the market opened and Australia’s S&P/ASX 200 tumbled more than 6%.
South Korea’s Kospi lost 4.4%.

Oil prices sank further, with U.S. benchmark crude down 4%, or $2.50, at $59.49 per barrel. Brent crude, the international standard, gave up $2.25 to $63.33 a barrel.

On Friday, Wall Street’s worst crisis since COVID slammed into a higher gear. The S&P 500 plummeted 6% and the Dow plunged 5.5%. The Nasdaq composite dropped 5.8%.

The losses came after China matched President Donald Trump’s big raise in tariffs announced last week, upping the stakes in a trade war that could end with a recession that hurts everyone. Even a better-than-expected report on the U.S. job market, usually the economic highlight of each month, wasn't enough to stop the slide.

So far there have been few, if any, winners in financial markets from the trade war. Stocks for all but 14 of the 500 companies within the S&P 500 index fell Friday.

The price of crude oil tumbled to its lowest level since 2021. Other basic building blocks for economic growth, such as copper, also saw prices slide on worries the trade war will weaken the global economy.

China’s response to U.S. tariffs caused an immediate acceleration of losses in markets worldwide. The Commerce Ministry in Beijing said it would respond to the 34% tariffs imposed by the U.S. on imports from China with its own 34% tariff on imports of all U.S. products beginning April 10, among other measures.

The United States and China are the world’s two largest economies.
The central question looking ahead is: Will the trade war cause a global recession? If it does, stock prices may need to come down even more than they have already. The S&P 500 is down 17.4% from its record set in February.

Trump seemed unfazed. From Mar-a-Lago, his private club in Florida, he headed to his golf course a few miles away after writing on social media that “THIS IS A GREAT TIME TO GET RICH.”

The Federal Reserve could cushion the blow of tariffs on the economy by cutting interest rates, which can encourage companies and households to borrow and spend. But the Fed may have less freedom to move than it would like.

Fed Chair Jerome Powell said Friday that tariffs could drive up expectations for inflation and lower rates could fuel still more price increases.

“Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said.

Much will depend on how long Trump’s tariffs stick and what kind of retaliations other countries deliver. Some of Wall Street is holding onto hope that Trump will lower the tariffs after prying “wins” from other countries following negotiations.

Trump has said Americans may feel “some pain” because of tariffs, but he has also said the long-term goals, including getting more manufacturing jobs back to the United States, are worth it.

On Wall Street, stocks of companies that do lots of business in China fell to some of the sharpest losses.

DuPont dropped 12.7% after China said its regulators are launching an anti-trust investigation into DuPont China group, a subsidiary of the chemical giant. It’s one of several measures targeting American companies and in retaliation for the U.S. tariffs.

GE Healthcare got 12% of its revenue last year from the China region, and it fell 16%.

In the bond market, Treasury yields fell, but they pared their drops following Powell’s cautious statements about inflation. The yield on the 10-year Treasury fell to 4.01% from 4.06% late Thursday and from roughly 4.80% early this year. It had gone below 3.90% in the morning.
 
 

The Economy, Trade and Industry Ministry is aiming to support companies likely to be affected by the United States’ reciprocal tariff policy.

Senior Vice Minister Yuichiro Koga was set to visit Subaru Corp.’s factory in Gunma Prefecture on Monday to meet its vice president and others. He is also scheduled to exchange opinions with parts manufacturers.

The ministry set up consultation desks at around 1,000 locations, including government-affiliated financial institutions and chambers of commerce and industry nationwide, and is increasing its financing support.

The Japan Finance Corporation’s Safety-net Loans for small- and medium-sized enterprises previously established conditions stating, for a company to be eligible for the loans, they must have suffered a “5% or more decrease in sales across the previous three months compared to the same period the prior year.”

This requirement will be relaxed so the loans are available regardless of sales fluctuations if impacted by the tariff hikes.

The ministry subsidy system will give priority to auto parts suppliers to help small- and medium-sized companies change their business. Government-funded Nippon Export and Investment Insurance has positioned the U.S.

tariff increase as a “political risk,” on par with war and natural disasters, and will cover losses incurred from cancellation of export contracts.
 
 

Businesses in Japan are feeling increasingly anxious about U.S. President Donald Trump’s high tariff policy.

Additional U.S. tariffs on imported automobiles took effect on Thursday, and parts manufacturers are feeling a sense of crisis, claiming that it is a matter of life and death.

“Prices are high, and costs are rising, so what kind of impact will this have on the future?” said Mitsunari Nomizu, director of Nomizu Seisakusho, a Tokyo-based metal processing manufacturer that makes parts for truck engines.

The price of steel, which is used to make the parts, has seen a 50% increase in the past five years. While the price increases for electricity and oil, which are necessary to operate manufacturing machinery, have also put pressure on businesses, the price per part has remained unchanged.

“It would be fine if we had the strength of big companies, but we are suffering when the tariffs are compounded with bad [business] conditions,” Nomizu said, regarding the tariff policy.

Sakae Industry Co., a metal parts coating and assembly company in Ota, Gunma Prefecture, receives more than 90% of its orders from Subaru Corp., which has a production base in the city.

“If automobile exports decline, and Subaru adjusts its production, our sales could significantly drop,” said Sakae Industry President Yuki Uda.

A 26.4% tariff on beef will be imposed if it exceeds a certain amount, and estimates show that total tariffs could reach 50.4%.

Saga Prefecture began exporting the prefecture’s brand Saga beef to the United States in July last year. As the prefecture promoted the beef in the United States last year to expand sales channels, the prefectural government’s livestock department felt a sense of crisis.

“We have been closely watching President Trump’s moves, but we did not expect this,” said a person in the department.

Steel giant JFE Steel Corp. will suspend the operations of one blast furnace at its West Japan Works in Kurashiki, Okayama Prefecture, in around mid-May. The company’s operations have not only been affected by the decline in domestic demand but also by the U.S. high-tariff policy.

“If local small and medium-sized businesses are heavily impacted, we will consider establishing a consultation service and providing necessary support,” said an official from the prefectural government’s industrial promotion division.
 
 

U.S. President Donald Trump's substantially higher tariffs, including those on all car imports, are set to slow export-oriented Japan's annual economic expansion by up to around 2 percent in the coming years, analysts warned.

Concerns are mounting that Asia's second-biggest economy, which has already been sluggish due in part to sharp inflation, could slip into recession if a downturn in exports stemming from U.S. tariff hikes weighs on corporate performance and hinders wage growth.

Takahide Kiuchi, executive economist at the Nomura Research Institute, estimates that the U.S. tariffs could push down Japan's gross domestic product by over 0.7 percent over roughly a year, urging vigilance against a possible recession.

Daiwa Institute of Research said Thursday that the reciprocal tariffs announced by the United States are projected to drag down Japan's inflation-adjusted GDP by about 1.8 percent in 2029, the year Trump is scheduled to leave the White House.

Trump, who started his nonconsecutive second term on Jan. 20, imposed 25 percent tariffs on all steel and aluminum imports in March and began applying an additional 25 percent levy on all automobiles produced outside the United States.

On Wednesday, Trump said he will slap a minimum 10 percent reciprocal tariff on all exports to the United States and further duties on Japan, home to Toyota Motor Corp and Honda Motor Co, and other selected countries, which face higher rates.

Trump's car tariffs would have a particularly huge impact on Japan, as the auto industry, its core business, has been a major driver of the broader economy. The United States remains the top market for Japan's carmakers working with many subcontractors at home.

More than 1.3 million vehicles were shipped to the United States in 2024, the Japanese government said. The volume accounted for 28.3 percent of Japan's total exports, the highest share among all items to the world's largest economy.

Business confidence among major Japanese manufacturers, however, deteriorated in March for the first time in a year, the Bank of Japan's quarterly Tankan survey showed earlier this month, as Trump's tariffs have blurred the outlook for the global economy.

The heavier tariffs by the United States come at a time when Japan is at a juncture where the pace of wage growth could outpace that of price hikes -- a goal sought by the government and the central bank, which have strived to combat decades-long deflation.

Last year, domestic companies agreed to wage increases averaging 5.28 percent at annual negotiations with labor unions, marking the sharpest gain in more than 30 years, while Japan's core consumer prices rose 3.1 percent in 2023, the fastest climb in 41 years.

In the latest shunto spring talks, firms offered average pay raises that reached 5.42 percent above the previous year's level, according to the Japanese Trade Union Confederation's interim survey, indicating a second straight yearly rise exceeding 5 percent.

The BOJ, meanwhile, has expressed eagerness to continue tightening its monetary policy to prevent inflation from hurting the economy. In January, the bank lifted short-term interest rates to 0.5 percent, the highest level seen in 17 years, from about 0.25 percent.

Nevertheless, economists said achieving wage growth that can surpass inflation remains challenging, as many companies, affected by the upturn in global raw material prices and the yen's depreciation, cannot afford to spend on human resources.

In addition, the Japanese government hopes that wage expansion will spread to small and medium-sized firms, which employ around 70 percent of the nation's workforce, but the U.S. tariffs and their side effects could pour cold water on the trend, they added.

Shinichiro Kobayashi, principal economist at Mitsubishi UFJ Research and Consulting, said that escalating trade frictions triggered by the U.S. tariffs could hamper business activities across the board, describing it as the "worst-case scenario."

"If the world economy decelerates, Japan's exports would decline, with repercussions for the domestic economy," such as reductions in capital spending, another key component of GDP, Kobayashi said.

Japan's GDP expanded an annualized real 2.2 percent in the October-December quarter, posting a third consecutive quarter of growth. An economy is technically considered in a recession if it contracts for two straight quarters.
 
 

Japan's job availability ratio in February fell 0.02 point from the previous month to 1.24, marking the first deterioration in six months, as employers grappled with surging material and utility costs, according to the latest government data.

Separate data showed the country's unemployment rate declined to 2.4 percent in February from 2.5 percent in January, improving for the first time in five months, as the number of people seeking jobs decreased.

The latest job-to-applicant ratio released by the Ministry of Health, Labor and Welfare means there were 124 job openings for every 100 job seekers.
New job offers fell in all surveyed industries, with hotel and restaurant services plunging 17.6 percent from a year earlier, and lifestyle and entertainment services dropping 10.5 percent.

Among other sectors, construction shed 9.1 percent and manufacturing saw a 6.5 percent decrease.

In addition to increasing costs affecting many industries, some manufacturers voiced concern about the tariff policies of U.S. President Donald Trump's administration, a labor ministry official said.

The Ministry of Internal Affairs and Communications said the number of people with jobs fell 0.2 percent from the month before to a seasonally adjusted 68.16 million, while those without jobs also dropped 3.4 percent to 1.68 million.

Of those not in work, 390,000 people were let go by their employers, up 5.4 percent, while 760,000 people left their jobs voluntarily, unchanged from January.

Meanwhile, the number of people newly seeking jobs dropped 6.3 percent to 450,000, helping to push down the overall unemployment rate, according to the ministry.
 
 

After the Switch 2 Direct wrapped up, Nintendo put out a press release announcing its pricing in different regions, including Japan. However, it appears that Japanese gamers will have an extra, cheaper option if they're happy to have a Japanese-language-only Switch 2.

"The Japanese-Language System" is priced at 49,980 yen (approximately $333.87 USD at the time of writing), versus 69,980 yen ($467.48 USD) for the Multi-Language equivalent, which will only be available from the Japanese My Nintendo Store. The base system will retail for $449.99 in the US.

Why the different tiers and prices? This option has presumably been made available as a reaction to the weak yen, which makes Switch 2's launch price even harder to swallow on Nintendo's home turf than elsewhere.

The ability to play games from any region on any Switch 2 around the world makes importing a Japanese console very financially attractive for people living outside the country, so language-locking this cheaper version aimed specifically at the Japanese market will dissuade people who don't speak or understand Japanese from importing the cheaper model.

US tariffs have been a hot topic recently, too, so Nintendo is having to get creative with its Switch 2 pricing strategy.

Additionally, the website says that there'll be a lottery system in place in Japan for anybody wanting to buy a Switch 2 at launch, which is fairly standard practice for the country when it comes to hot-ticket gaming hardware.

More details on the lottery system will be announced on 4th April, while Nintendo has an invite system in place in the West for anyone looking to pre-order from the platform holder itself, although there are certain criteria to qualify. Retailer pre-orders have yet to be announced.
 
 

Tokyo stocks plunged on Monday, the final day of Japan's 2024 fiscal year, with the Nikkei index ending down 4 percent at a seven-month low amid selling triggered by concern over the adverse impact of U.S. tariffs on the Japanese economy.

The 225-issue Nikkei Stock Average slid 1,502.77 points, or 4.05 percent, from Friday to 35,617.56, its lowest closing since Aug. 9, and finishing down 11.8 percent from a year earlier. The broader Topix index finished 98.52 points, or 3.57 percent, lower at 2,658.73.

All sectors lost ground on the top-tier Prime Market, with decliners led by insurance, nonferrous metal, and oil and coal product issues.

The U.S. dollar briefly weakened to the upper 148 yen range in Tokyo, as the yen, seen as a safe-haven asset, was bought on fears of an economic slowdown in the United States due to President Donald Trump's trade policies, dealers said.

At 5 p.m., the dollar fetched 149.13-15 yen compared with 149.75-85 yen in New York and 150.38-40 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0831-0832 and 161.53-57 yen against $1.0828-0838 and 162.18-28 yen in New York and $1.0786-0788 and 162.21-25 yen in Tokyo late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at a four-week low at 1.485 percent, down 0.060 percentage point from Friday's close. The debt was bought as a safe asset as the Nikkei stock index sharply dropped.

On the stock market, the Nikkei benchmark followed Wall Street's plunge late last week as fears grew over a potential economic slump accompanied by high inflation in the world's largest economy.

Heavyweight technology stocks fell sharply following declines by their U.S. counterparts, while auto shares were sold off ahead of Trump's additional 25 percent tariffs on all vehicles made outside the United States, set to take effect on Thursday.

"Concern about the Japanese economy has started to smolder, considering (the tariffs' expected) adverse impact on the auto industry, which is the country's key industry," said Kazuo Kamitani, a strategist at the Investment Content Department of Nomura Securities Co.

While optimism prevailed before Trump took office in January, as he was seen as mindful of financial markets, sentiment has since worsened as he announced a series of aggressive tariff measures despite continued stock declines, brokers said.

"The market saw that the effects of the tariffs have started to influence the real economy in the United States," dealing a blow to Japanese equities as well, said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

"Investors have found it difficult to factor in the impact of the tariffs, as the U.S. administration is taking time to announce measures one after another, possibly leading to a risk of stocks sliding further," Yamaguchi added.
 
 

Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. have entered into merger discussions, with the target date for the merger set for April 2027.

If the merger is realized, the domestic non-life insurance sector will be dominated by three mega-companies, representing a shift to a structure similar to that of the banking industry.

The sector’s reorganization over the past quarter century, which kicked into full gear during a period of liberalization in the insurance sector and the accompanying intensification of competition, has reached its final stage.


Survival

A little after 4:30 p.m. on Thursday, the day before the announcement, Shinichiro Funabiki, president of both MS&AD Insurance Group Holdings, Inc. and Mitsui Sumitomo Insurance Co., and Keisuke Niiro, president of Aioi Nissay Dowa Insurance Co., met with Yutaka Ito, director-general of the supervision bureau, at the Financial Services Agency (FSA) in Kasumigaseki, Tokyo.

It was a 15-minute meeting, during which the two presidents informed Ito that they planned on Friday to proceed with discussions on a merger of their companies. As they left the room after the meeting, the two were seen chatting amicably.

“We aim to become a world-leading insurance and financial group by working toward consolidating our strengths and improving management efficiency,” MS&AD Insurance Group Holdings, which controls the two firms, emphasized in an announcement made on Friday.

To survive in the domestic market, where population decline and other factors have made little room for further growth, MS&AD Group has shifted toward the judgment that a merger of the two companies is more desirable than the current structure, in which the two firms coexist under a joint holding company.


Concern

However, before the decision was made, a series of twists and turns took place due to persistent reluctance on the part of Aioi Nissay Dowa Insurance. Aioi Nissay Dowa Insurance, whose earning power falls short of Mitsui Sumitomo Insurance’s, had been rife with concerns that it “might be swallowed up” by its merger partner.

In the fiscal year ended on March 31, 2024, Mitsui Sumitomo Insurance’s net income totaled ¥167.7 billion. Aioi Nissay Dowa Insurance, on the other hand, posted a total of ¥56 billion net income, about one-third of Mitsui Sumitomo’s.

What Niiro was concerned about in particular was how the company’s employees would be treated. He laid bare his concern to those around him, saying, “Unless the merger is made in a manner that is mutually satisfying, we will end up having many unhappy people.”

While approving the merger plan, senior FSA agency officials asked Mitsui Sumitomo Insurance to “proceed carefully with dialogue.”

Funabiki and Niiro have had a series of behind-the-scenes talks since last year to reconcile their views. At the same time, Funabiki got other related major companies on board with the merger plan, thus clearing the way for it to happen.

In 1996, the non-life insurance industry started to see the effects of moves to liberalize the insurance sector, such as allowing insurers to freely set their premiums.

Those moves brought about the collapse of the “convoy system,” under which government regulation had prevented weak companies from going under, and led to a succession of mergers and corporate integrations amid an intensification of market competition.

The birth of Sompo Japan Nipponkoa Insurance Inc. — presently Sompo Japan Insurance Inc. — through a merger of Sompo Japan Insurance Inc. and Nipponkoa Insurance Co. in 2014 ushered in a domestic non-life insurance sector comprised of four major insurers. Now, the next chapter in the history of the sector is being written.


‘Thorny issues’

The crucial moment for the merger has yet to come. How to allot executive posts and what to do with employees who become redundant are the toughest issues to be tackled, and finding a way to conclude the deal with mutual satisfaction will be an uphill battle.

“The merger ratio is connected to the number of executive posts allocated, so that will be a difficult topic of discussion,” said a senior executive of Aioi Nissay Dowa. “Disputes over the name of the new company are also inevitable, so there are many thorny issues ahead.”
 
 

 

Core consumer inflation in Japan’s capital stayed above the central bank’s target and accelerated in March on steady gains in food costs, data showed on Friday, keeping alive market expectations of a near-term interest rate hike.

The data, which is closely watched by policymakers as a leading indicator of nationwide price trends, highlights mounting inflationary pressure as companies continue to pass on rising raw material costs to households.

The Tokyo consumer price index (CPI), which excludes volatile fresh food costs, rose 2.4% in March from a year earlier, government data showed, faster than a median market forecast for a 2.2% increase. It accelerated from a 2.2% gain in February.

A separate index for Tokyo that strips away both fresh food and fuel costs — closely watched by the BOJ as a measure of domestic demand-driven prices — rose 2.2% in March from a year earlier after a 1.9% rise in February, the data showed.

Food prices rose 5.6% in March, faster than a 5.0% gain in February. The cost of rice surged 92.4% in March, a sign of the pain households were feeling from rising living costs.

The BOJ exited a decade-long, radical stimulus program last year and raised short-term interest rates to 0.5% in January on the view Japan was on the cusp of sustainably hitting its 2% inflation target.

Governor Kazuo Ueda has said the BOJ will keep pushing up borrowing costs if continued wage gains underpin consumption and allow firms to raise prices, thereby maintaining inflation stably around its 2% target.

The Tokyo CPI data will be among factors the BOJ will scrutinize in producing fresh quarterly growth and price forecasts at its next policy meeting on April 30-May 1.

A Reuters poll showed many analysts expect the BOJ’s next rate hike to come in the third quarter, most likely in July.
 
 

Prices of rice in Tokyo jumped around 90 percent in March from a year earlier, with the government's recent release of stockpiles having limited impact, consumer price data showed Friday.

The 89.6 percent increase, bigger than the 77.5 percent year-on-year growth in February, was the largest rise since 1971, when comparable data became available, according to the government's preliminary data for Tokyo's 23 wards.

Among prices of rice-related items, rice balls climbed 11.8 percent, bento boxed meals increased 8.4 percent, while those of sushi served at restaurants rose 8.7 percent, the Ministry of Internal Affairs and Communications said.

The price surges came even as the government started auctioning its stockpiles earlier this month to ease soaring prices of the Japanese staple.

The spike in rice prices followed a poor harvest in the summer of 2023 due to high temperatures that reduced the amount of rice available for distribution the following year. A sharp rise in foreign tourists has also driven up rice consumption at restaurants.

Core consumer prices excluding volatile fresh food rose 2.4 percent in Tokyo, the ministry said. The gauge is seen as an indicator of what to expect nationwide.
 

 

Foxconn, a Taiwanese semiconductor manufacturer, will hold a seminar in Japan on April 9 to outline its EV strategy.

The seminar aims to provide Japanese automakers and suppliers with insights into Foxconn’s EV plans. Jun Seki, Foxconn’s chief EV strategy officer and a former Nissan executive, is expected to speak. Foxconn has not commented on the event.

This seminar follows Foxconn’s recent agreement with Mitsubishi Motors to produce EVs for sale in Oceania, including Australia, New Zealand, and Taiwan.

This marks Foxconn’s first outsourcing deal with a Japanese automaker. It suggests a possible shift in Japan’s automotive industry amid growing competition from Chinese EV manufacturers like BYD.
 
 

The Japanese agriculture ministry on Wednesday began to accept bids in the second round of its auction for government-stockpiled rice.

The focus is on whether the release of reserve rice will help curb soaring rice prices. The government plans to consider a further release if necessary.

The ministry decided in February to release 210,000 tons of government-stockpiled rice, of which 140,000 tons were sold in the initial auction. The latest auction covers the remaining 70,000 tons.

The ministry will announce at a later date the average of successful bids and other results of the latest auction.

A total of 35 rice brands have been put out to tender, including Haenuki from Yamagata Prefecture, Tennotsubu from Fukushima Prefecture and Koshihikari from Niigata Prefecture.

The auctioned rice is expected to be handed over to successful bidders from mid-April.
 
 

The Japanese Bankers Association, or Zenginkyo, plans to terminate the exchanges of promissory notes and checks at its national electronic clearing system in April 2027.

Companies and financial institutions will still remain able to exchange such financial instruments among them including by mail.

However, many financial institutions will stop handling promissary notes and checks, making it difficult to continue using such instruments.

The government aims to abolish promissory notes and paper checks in 2026. Japan’s three megabank lenders including Mitsubishi UFJ Financial Group Inc. are set to terminate the issuance of such instruments within fiscal 2025 through March 2026.

Zenginkyo will promote a transition to online banking and electronically recorded monetary claims, which are settled automatically at due dates.
 
 

The Yomiuri Shimbun began publishing the Yomiuri Stock Index (Yomiuri 333) on Monday. The closing price on the first day was 35,507.74, a fall of 155.90 points from Friday.

The proportion of stocks that fell in price on the Tokyo Stock Exchange’s Prime Market, where the majority of the 333 stocks that make up the Yomiuri 333 are listed, was nearly 70% on Monday.

This trend was due to a lingering sense of caution about the tariff policy of the administration of U.S. President Donald Trump.

The Yomiuri 333 is a stock price index that indicates trends in the Japanese stock market. The index incorporates the stocks of 333 Japanese companies with equal weighting.

The index value is calculated once a day on weekdays and published in the evening on the Yomiuri Shimbun Online website and elsewhere.

The calculation is entrusted to Nomura Fiduciary Research & Consulting Co.

The stock index was shown on the day on a street display of IwaiCosmo Securities Co. in Tokyo’s Kayabacho district.
 
 

Japanese online shopping giant Rakuten Group Inc is considering introducing autonomous mobile robots to deliver goods amid a severe labor shortage in the transportation sector, according to a senior official.

The company plans to expand the technology to its flagship Rakuten Ichiba online shopping operations, having already launched a robot delivery service in Tokyo for groceries and other items bought from local stores, Fukutaro Yamashita, a senior manager in the company's unmanned solution department, said in a recent media briefing.

"This is a business that is needed in an era of population decline," he said.
The plan comes as e-commerce firms such as Rakuten are facing a severe shortage of delivery personnel at a time when the number of packages is increasing.

Yamashita said autonomous robots will be especially useful for last-mile deliveries, the final stage when shipments reach their destinations.

He did not specify when the company plans to introduce the robots for its e-commerce service or how many it aims to deploy.

Rakuten's current service, which started in Tokyo's Harumi district and neighboring areas in November, employs robots made by U.S. start-ups to transport groceries ordered on a dedicated smartphone site from a local supermarket to designated pickup points for a fee of 100 yen.

Rakuten has also teamed up with beef bowl restaurant chain Yoshinoya Co, U.S. coffee chain Starbucks and other businesses, and is planning to expand the number of partner stores and the area covered by the service.

Japan's revised road traffic law in 2023 made it easier for unmanned delivery services to gain traction, with autonomous delivery robots now allowed to operate on public roads under certain conditions.

The Japanese operator of the Uber Eats online food ordering platform is also offering robot delivery services in the country.
 
 

Three winters from now, Japan’s snowy Myoko highlands will be home to a $1.4 billion mega-resort built by a Singaporean fund, with hotels charging some $1,350 a night.

The project by Patience Capital Group (PCG) promises to create 1,000 jobs and spur winter tourism. But for many Myoko locals, foreign interest has become a double-edged sword, threatening overdevelopment, sky-high prices and the sweeping away of traditional culture.

Even before news of PCG’s interest, many inns, ski rental shops and restaurants in Akakura — one of five major ski resort towns in the Myoko region — had been snapped up by foreigners.

But they’re only interested in the snow and once that melts, those businesses shut. The town, also once a bustling hot-spring destination, no longer has enough going on to attract many visitors during the rest of the year.

If you come to Akakura in summer, it’s pitch dark at night, said Masafumi Nakajima, owner of local inn Furuya and head of the 200-year-old town’s hot spring-inn tourism association. He estimates only 10 of about 80 inns in Akakura operate year-round.

Located roughly 2.5 hours from Tokyo by train in Niigata prefecture, Myoko, along with the more famed Japanese ski resorts of Niseko and Hakuba, is known for powder snow, dubbed “Japow.”

The resort areas are a huge part of Japan’s tourism boom, also fueled by a weak yen, which saw inbound tourist numbers jump 17% in February, hitting a record high for that month.

Nakajima said many foreign business owners in Akakura have refused to join the local tourism association. One consequence is a lot of broken rules on the part of businesses and tourists that range from not disposing of garbage properly, to overparking to late-night fireworks.

We have no idea who they are and what they’re doing. They just come in December and disappear when spring comes, he said. Nakajima recently started approaching foreign businesses to offer lectures on the town’s rules.



Priced out

Many locals fear Myoko could go the way of Niseko.
The resort on the northern island of Hokkaido has become a world-renowned winter sports destination on the back of high-end foreign developments, but the surge in property prices brought higher taxes for locals choosing not to sell.

Inflation there — from labor costs to a bowl of ramen — has gone through the roof, pricing locals and most domestic travelers out of the market.

Hakuba, in the Japanese Alps, has followed a similar path, while one township in Myoko has already seen land prices jump as much as 9% last year.

PCG’s Tokyo-born founder, Ken Chan, said he’s mindful of local fears about his project, which will span 350 hectares and two ski slopes.

To attract visitors year-round, PCG wants to promote its two planned luxury hotels for business conferences and is considering discounts during non-peak times for local residents who want to ski or snowboard, he told Reuters.

He also intends to host a meeting with residents in the coming months.
Myoko City mayor Yoji Kido said he’s cautiously optimistic about PCG’s development plans but has heard few specifics.

Kido has been fielding more enquiries from foreign investors and conscious of local concerns, the city is considering new regulations for larger projects from the 2027 fiscal year.

It’s going to be an unusually big development for our city, he said. “I can’t deny that things aren’t worry-free.”

Koji Miyashita, the owner of a half-century-old shop in Akakura that sells steamed buns filled with red bean paste, said he sometimes feels like he doesn’t live in Japan as Westerners throng the town’s streets.

Development in Myoko should sustain the region’s culture, he said, adding: “We don’t want to be another Niseko.”
 
 

Household assets in Japan totaled 2,230 trillion yen ($15 trillion) at the end of December, growing 4.0 percent from a year earlier to a new record on rising stock prices, Bank of Japan data showed Friday.

Assets were boosted by investment trusts that jumped 27.4 percent to 136 trillion yen after the revamp last year of Japan's tax-free investment program.

Stockholdings rose 9.5 percent to 298 trillion yen while cash and deposits, which accounted for half of the total, edged up 0.6 percent to 1,134 trillion yen.

Cash fell, declining 3.4 percent to 105 trillion yen amid higher prices and an increase in cashless payments.

The proportion of Japanese government bonds held by the BOJ stood at 52.05 percent, down from 52.64 percent at the end of September.

The central bank, which held 559 trillion yen worth of government bonds at the end of December, has been reducing its purchases as part of efforts to shift away from a decade of ultraeasy monetary policy.
 
 

Japan will provide up to about 13.7 billion yen ($90 million) in loans for a hydropower plant project in Bhutan as part of efforts to deepen ties with the landlocked nation sandwiched between India and China.

Japanese Ambassador to Bhutan Keiichi Ono, who doubles as the envoy to India, and his Bhutanese counterpart, Vetsop Namgyel, signed documents regarding the loan agreement in New Delhi in February, according to the Foreign Ministry.

The construction of three waterpower stations, one in the district of Samdrup Jongkhar and two in Samtse, both bordering India, is set to start in May and is scheduled to be completed in 2029, according to the government-backed Japan International Cooperation Agency.

Selling surplus hydro-energy to India during the rainy season from around June to October is one of Bhutan's major industries, accounting for approximately 40 percent of its annual exports in value terms, according to the ministry.

The small Himalayan kingdom almost exclusively relies on hydroelectricity and has difficulty in securing enough power in the dry season, with the country's energy demand expected to keep rising along with its economic growth, the ministry said.

One of the three facilities will be a "storage hydropower" plant that uses a dam to store water in a reservoir so that it can adjust the timing of electricity generation. A Japanese ministry official said it will help meet some of the demand for power during dry spells.

By helping Bhutan realize a stable energy supply and promote power exports in the wet period, Japan aims to "contribute to the country's economic and social development and decarbonization of the Southwest Asian region," the ministry said.

For Bhutan, it is the first hydraulic plant project supported by Japan, the official said. The mountainous state is heavily dependent on India economically, and has no diplomatic ties with its northern neighbor China.

Japan views Bhutan, which has a population of nearly 800,000 and is known for its emphasis on the Gross National Happiness index, as geopolitically important and has maintained amicable relations.
 
 

U.S. President Donald Trump's proposed tariff hike on vehicle imports from April will likely lead to fewer Japanese exports and reduced domestic production, the head of the country's auto industry body said Wednesday.

If the planned tariffs are imposed, "significant domestic production adjustment is expected," said Masanori Katayama, chairman of the Japan Automobile Manufacturers Association, at a press conference in Tokyo.

Katayama, chairman and CEO of Isuzu Motors Ltd, said the association, in coordination with the Japanese government, also needs to discuss measures to support parts suppliers as they play a critical role in the industry.

Trump has said tariffs of around 25 percent on imported cars will likely be imposed on April 2, a significant increase from the current 2.5 percent.

Japan, a key security ally of the United States, sought an exemption from the new tariffs, but the United States made no promises when trade minister Yoji Muto met with officials in Washington earlier this month.

According to official Japanese trade data, about 1.37 million vehicles were shipped to the United States in 2024, accounting for 28.3 percent of its total exports to the world's largest economy in terms of value.
 
 

A consortium formed by representatives of industry, government and academia has set a target of using over 15% recycled plastic in the production of cars in Japan in 2031, and over 20% from 2036, it has been learned.

The goal is to encourage the domestic recycling of plastics from the perspective of economic and resource security in response to new regulations to be introduced by the European Union in 2031.

The consortium includes the Japan Automobile Manufacturers Association, Inc. — of which Toyota Motor Corp. is a member — the Japan ELV Recycler’s Association, the Japan Plastics Industry Federation, the Economy, Trade and Industry Ministry, the Environment Ministry and academic experts.

An action plan, which includes the targets, has been decided at a meeting held at the Environment Ministry on Monday.

Plastic is a common material in automobile parts such as bumpers and engine covers, and the amount used in the production of vehicles in Japan can reach 1 million tons per year.

However, little progress has so far been made in utilizing recycled plastic. In the future, it will be necessary to be aware of recycling from the design stage in order to increase the proportion of plastic which can be recovered and then recycled.

Based on the action plan, the government intends to support related capital investment and demonstration tests and build a supply chain for recycled plastic among automobile manufacturers, dismantling companies and recycling organizations.

The supply of recycled plastic made from end-of-life vehicle (ELVs) parts is planned to increase to 21,000 tons per year by 2030. By focusing on the use of plastics retrieved from products other than ELVs, the overall supply will be increased to 25,000 tons by 2031 and then will be increased in stages to 157,000 tons in 2036 and 200,000 tons from 2041.

The European Parliament is debating a draft regulation that would require at least 20% of the plastic used in the production of cars to be recycled plastic, which would come into effect as early as 2031.

The recycling of plastic scraps from the manufacturing process would be included in the overall percentage. If the consortium’s action plan includes plastic scraps, it is expected to be able to comply with the new regulation.
 
 

The average sales price of Japan's 2024 rice crop to wholesalers hit a record high for the sixth straight month in February, the agriculture ministry said Wednesday.

The average price stood at 26,485 yen per 60 kilograms, up 73 pct from a year before and 2 pct from a month before. It is the average of transaction prices between rice wholesalers and buyers dealing with farmers, such as the National Federation of Agricultural Cooperative Associations, or Zen-Noh.

Following a serious shortage of the country's staple food in stores in summer 2024, competition among buyers has intensified.

The ministry has decided to release some of the government stockpiled rice, but it is unclear whether this will be enough to counter soaring prices.

The ministry also released the outcome of a survey on rice acreage in 2025.
 
 

Key Points

• Japan’s central bank kept its key policy rate steady at 0.5% at Wednesday’s conclusion of a two-day meeting.
• The move, which was in line with market expectations, comes ahead of the U.S. Federal Reserve’s policy meeting, where the central bank is expected to keep its benchmark interest rate steady.
• Analysts are of the view that the BOJ will soon raise interest rates, but are split on the timing for the next hike.

 
Japan’s central bank on Wednesday kept its key policy rate steady at 0.5% in a unanimous vote, as the export-reliant country assesses the potential impact of U.S. President Donald Trump’s protectionist trade policies on its economy.

The move, which was in line with market expectations, comes ahead of the U.S. Federal Reserve’s policy meeting, where the central bank is expected to keep its benchmark interest rate steady.

“Japan’s economy has recovered moderately, although some weakness has been seen in part,” BOJ policymakers said in a statement, while cautioning of “high uncertainties surrounding Japan’s economic activity and prices, including the evolving situation regarding trade ... and domestic firms’ wage -and price-setting behavior.”

The bank is seen to be referring to reciprocal tariffs and sector-specific tariffs that Trump is expected to announce on April 2., said Hiroki Shimazu, chief strategist at MCP Asset Management Japan.

Following the rate decision, the Japanese yen was little moved, trading at 149.46 against the U.S. dollar. The benchmark Nikkei 225 index was up 0.69%.

Analysts are of the view that the BOJ will soon raise interest rates, but are split on the timing for the next hike.

Fred Neumann, chief Asia economist at HSBC, said the BOJ could next raise interest rates in June.

“June looks more likely. The market is a little bit after that, probably July is sort of what the market is thinking right now. We think a little bit earlier in June,” Neumann told CNBC’s “Squawk Box Asia” on Wednesday.

“It’s not just contingent on the Fed. It’s actually contingent on the BOJ getting some evidence that really wage increases are percolating through the economy,” Neumann said.

“We only just had the major unions negotiate, we don’t know what the smaller unions are doing, we don’t know what small or medium-sized enterprises are doing, so the BOJ tends to wait until June to get all the evidence on wages and then they can pull the trigger,” he added.

The BOJ raised short-term rates to 0.5% from 0.25% in January, its highest level since 2008, after ending a massive stimulus program last year. The central bank has signaled its readiness to hike rates further if the economic growth and inflation moves in line with its projections.

 
Trade Frictions

BOJ Governor Kazuo Ueda said at a post-meeting news conference Wednesday that “it is hard to quantify the risk,” referring to Trump’s back-and-forth comments on tariff hikes, according to Reuters translation of his remarks in Japanese.

“We will scrutinize how the U.S. trade policy unfolds, how it affects the U.S. and global economies, and how that all impacts Japan’s economic and price outlook,” he added.

Trump has slapped tariffs targeting nations including Canada and Mexico, where Japanese carmakers have major manufacturing bases. In additional to reciprocal tariffs, Trump also touted tariffs of around 25% on imported automobiles.

Japan so far has not been able to get a tariff exemption from the Trump administration despite a seemingly positive meeting between the two nations’ leaders in February.
 
‘Virtuous Cycle’

The BOJ has long reiterated that its goal is to see a “virtuous cycle” of rising prices and wages in Japan.
Japan’s largest labor union announced on Friday that it managed to secure an average 5.46% increase in wages from April — its largest increase in over three decades.

The Japanese Trade Union Confederation, or Rengo, which has around 7 million members, said that the first tabulation of the results covering 760 unions was 0.18 percentage points higher than last year’s increase of 5.28%.

Small to medium-sized businesses saw an average rate rise of 5.09%, up 0.67 percentage points from last year and the first time since 1992 that the wage hikes for such companies crossed the 5% mark.

UA Zensen, an umbrella group representing retail, restaurant and other industry unions, reportedly said 139 of its member unions received an average increase of 5.37% in monthly wages for full-time workers, slightly less than 2024′s record figure of 5.91%.

In January, Japan saw a 2-year high inflation rate of 4%, as well as household spending massively beating expectations in December, with a 2.7% rise year on year.

The December figure was the fastest that household spending had climbed since August 2022, and the first year-on-year rise since July 2024. Household spending subsequently slowed in January to a 0.8% rise.

“Inflation expectations have risen moderately,” the BOJ said in the Wednesday statement, adding that “rice prices are likely to be at high levels and the effects of the government’s measures pushing down inflation will dissipate” through fiscal year of 2025.

Revised fourth-quarter GDP figures released last week showed Japan’s economy grew 2.2% on an annualized basis, a slower pace than initially reported. The revised data also came in lower than economists’ median forecast.
 
 

The Nikkei 225 stock average retook 38,000 at one point in Tokyo trading on Tuesday morning, helped by overnight gains in U.S. stocks.

The key Japanese index finished the morning session at 37,943.23, up 546.71 points, or 1.46 pct, from Monday, after crossing the 38,000 threshold for the first time since Feb. 27 on an intraday basis.

A weaker yen against the dollar also spurred stock buying. At noon, the dollar stood at ¥149.67-67 , up from ¥148.84-86 at 5 p.m. Monday.

Major trading houses were particularly buoyant after it was revealed that Warren Buffett’s Berkshire Hathaway Inc. had raised its stakes in them.
 
 

The legal procedures related to Nippon Steel Corp and United States Steel Corp's lawsuit to nullify the U.S. government's decision to block their merger may be extended, with the companies consenting to pushing oral arguments back to May 12 from April 24, a filing released Monday showed.

According to a U.S. Steel filing with the Securities and Exchange Commission on Friday, the Justice Department asked the court for the extension in a motion submitted the same day.

The government seeks more time to complete its ongoing discussions about the merger with the two steelmakers, with the goal of removing the need for resolution of the litigation on the merits.

The document noted that both Nippon Steel and U.S. Steel had consented to the government's motion, though at the time of filing the court had yet to rule on the matter.

The government is also seeking to extend by 21 days the briefing deadlines in the lawsuit that the two firms lodged against former President Joe Biden and the Committee on Foreign Investment in the United States, a panel of U.S. federal agencies involved in screening the proposed merger.

In early January, Biden issued an order to block the $14.1 billion takeover of U.S. Steel by the Japanese company, citing national security grounds, following a recommendation by the panel also known as CFIUS.

Nippon Steel and U.S. Steel, which announced their merger plan in December 2023, filed the lawsuit after Biden's decision, claiming that CFIUS's screening process and recommendation were influenced by the former president.

In the months leading up to the Nov 5 presidential election, Biden had aligned with the leadership of the powerful United Steelworkers union to voice opposition to the sale of U.S. Steel, headquartered in Pennsylvania, which was a key battleground state in the race to the White House.

President Donald Trump, who won the election, was also against the sale. He has since said that Nippon Steel acquiring a minority stake in U.S. Steel would not cause any issues, but a foreign company owning the iconic producer would not be good psychologically.
 
 

In fiscal 2024, rice import applications submitted to the government covered a record high 991 tons as of the end of January.

Private imports of overseas rice have been increasing rapidly due to shortages in the domestic market. In fiscal 2024, rice import applications submitted to the government covered a record high 991 tons as of the end of January.

Currently, companies are able to profit from such imported rice, even though they have to pay a high tariff. Kanematsu Corp., a major trading company based in Tokyo, has decided to import an unprecedented 10,000 tons of rice in 2025.

There are two types of rice importation. Rice is either imported by the government, which is obliged to purchase a certain amount from foreign countries under the rules of the World Trade Organization, or is privately imported by trading and other companies, which pay a tariff to the government.

Up to 100,000 tons of government-imported rice for staple food use is available for the market. Records of privately imported rice are available for fiscal 2019 onward, with 426 tons imported in fiscal 2020.

The amount had since been between 200 tons and 400 tons each year, but in fiscal 2024 it reached 468 tons by the end of December. Then by the end of January, the amount had more than doubled to 991 tons.

Kanematsu last month announced it would import 10,000 tons of rice due to the high demand from those in the restaurant industry, such as gyudon beef rice bowl chains.

According to sources close to the distribution industry, the purchase price for Calrose medium grain rice produced in the United States is about 150 yen per kilogram, including transportation and other costs. After the tariff is added, the total price is about 500 yen per kilogram.

Given that domestic rice is currently sold at around 900 yen per kilogram in stores, companies can sufficiently profit from imports, the sources said.

The Yokohama-based supermarket chain OK has been selling Calrose rice at 10 of its outlets since March 7 at 3,335 yen for five kilograms, including tax.

The company will make such decisions as whether to sell the rice at other outlets depending on the sales of the rice at the 10 stores.

The system under which the government buys foreign rice is called the minimum access system. Following the 1993 Uruguay Round multilateral trade talks, the system was implemented in fiscal 1995.

Of the current rice import quota of 770,000 tons, the import of general-purpose rice for staple food use is limited to 100,000 tons. The government-imported rice sold out in fiscal 2024 for the first time in seven years due to a poor domestic rice harvest.
 
 

One of Japan's largest cold storage warehouses has been built in Kobe, a major international port and key distribution hub in the west, amid growing demand for frozen food, a logistics business operator said Monday.

GLP Japan Inc. unveiled a five-story facility with about 46,000 square meters of floor space, built with a 15 billion yen ($101 million) investment, as rising construction costs make it increasingly difficult for companies to build their own storage sites.

The warehouse, with temperatures ranging from minus 25 C to 10 C, is already fully occupied by three tenants, including a transport firm, according to GLP Japan.

Yoshiyuki Chosa, president of GLP Japan, said the company plans to invest an additional 200 billion yen over the next three to five years to further develop the facility, as establishing such warehouses near consumers has become increasingly important.
 
 

For the first time in the country, 3D printer technology will be used to construct a new building for an unmanned railway station, according to a Tuesday announcement by West Japan Railway Co. (JR West) and others.

The new Hatsushima Station along the Kisei Line in Arita, Wakayama Prefecture, will be a one-story concrete building. The structure will be 2.6 meters tall, 6.3 meters wide and 2.1 meters deep.

The project aims to efficiently construct a station if renovating an aging station poses problems.

The building parts will be produced at Serendix Inc., a homebuilder using 3D printers in Nishinomiya, Hyogo Prefecture, and assembled at the station site. The assembly is scheduled to take place after the last train on March 25. The work is expected to require about six hours.

JR West chose Hatsushima Station for the project because it is close to the sea and makes it easier for the company to check matters such as the building’s durability as it is exposed to salty air.

“We will closely examine the cost for construction, maintenance and management, and hopefully bring the project to other stations, too,” said a JR West official.
 
 

Canada's Alimentation Couche-Tard Inc, the operator of Circle K convenience stores, said Thursday that its discussions with Seven & i Holdings Co to acquire the Japanese rival have been "friendly" and that it is not considering a hostile takeover.

At a press conference, the first held in Japan by the company since the buyout talks surfaced last year, Couche-Tard founder and Chairman Alain Bouchard said the two companies' operations combined would create strong synergy.

"Japanese operations are truly world class. For a long time, we have a belief there is a unique strategic fit" between the two retailer's convenience store brands, he said.

But he also said he was "disappointed" that Seven & i has only been focusing on regulatory issues in the United States related to antitrust concerns generated by the potential deal.

The Canadian company sees "a clear path" to regulatory approval given that it has completed many acquisitions in the world's biggest economy, CEO Alex Miller said at the press conference, while Bouchard said the company will continue to pursue the deal even if it takes time.

Amid growing concerns among 7-Eleven store owners in Japan about the potential change of hands, the company said it will invest in the country and create jobs and has no plan to close stores or fire employees.

"We deeply respect the role Seven & i plays in the nation," Bouchard said, referring to how the convenience store operator has grown to be part of the social infrastructure.

The comments came as the companies remain embroiled in an increasingly acrimonious dispute, following Couche-Tard's takeover proposal for the operator of 7-Eleven convenience stores.

Seven & i said Monday it had called on the Canadian company to sell all of its stores in the United States to address antitrust concerns.

Earlier this month, the Japanese company appointed a new CEO and unveiled a series of measures, including a massive share buyback and the sale of its supermarket subsidiary to U.S. private equity firm Bain Capital, as it seeks to enhance its corporate value and fend off the proposed acquisition.

The Japanese company's founding family sought to take the firm private but recently gave up on the plan after facing difficulty in securing funding.
The envisaged deal, costing around 9 trillion yen, would have been the biggest management buyout in Japan, according to Recof Data.

Seven & i said in August last year that it had received a takeover proposal from Couche-Tard, estimated at over 7 trillion yen.

Seven & i operates more than 80,000 convenience stores around the world. The Canadian company, which also runs the Couche-Tard brand convenience store chain, has about 17,000 stores in over 30 countries and regions.
 
 

Many of Japan's biggest companies from tech conglomerates to Toyota have met union demands for substantial wage hikes for a third consecutive year, seeking to help workers cope with inflation and retain staff amid labour shortages.

As annual "shunto" or "spring labour offensive" negotiations at top firms concluded on Wednesday, electronics conglomerate Hitachi said it had agreed to a record 6.2% increase in monthly wages in line with union demands.

Major Toyota auto parts supplier Denso also plans record pay hikes while Toyota said the combined increase in pay for manufacturing staff would match that of last year, which was the highest since 1999.

Policymakers have pushed for robust pay hikes given sharply higher prices for food and record corporate profits on the back of a weak yen. But it's unclear whether the hikes will be strong enough to spur consumer spending and encourage the Bank of Japan to increase its policy rate, still at a low 0.5%, more aggressively.

Economists expect Japan Inc's average pay hike for 2025 to be similar to last year's 5.1% rise, which marked the sharpest increase in 33 years and enabled the central bank to exit its decade-long super-loose monetary policy.

Rengo, Japan's largest labour union umbrella group with 7 million members, will release a preliminary report on agreed terms on March 14. Its unions were seeking an average hike of 6.09%, up from 5.85% last year.

Naoki Hattori, a senior economist at Mizuho Research and Technologies, said that an average pay hike of 5% to 5.5% would support expectations that the Bank of Japan will continue with its practice of raising rates once every six months or so, with the next one seen in June.

"But if we get an average pay hike that is closer to 6% then that changes the complexion of things a bit," he said. "An increase in wages could lift prices, particularly in services. I don't know that we'd see a rate hike as soon as March but we could see one in May," he added.

For the central bank to increase its pace of interest rate hikes, economists say it will need to see wage growth spur consumer spending.

Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, is not optimistic that will happen, saying that an average pay raise of 5-5.5% across corporate Japan this year would "just offset inflation and not drive consumer spending."

In January, the consumer inflation rate used to calculate real wages, which includes fresh food items but not rent costs, rose to 4.7% year-on-year - the highest reading in two years.

How the average pay hike turns out will also depend on whether there will also be strong pay gains at small and medium-sized firms, which employ around 70% of Japan's workforce.

Toyota has said it plans to pay more for domestic components to help suppliers fund pay rises.

"I've heard from smaller firms that they need more support to help them pass on the higher cost of wages to their customers and to increase productivity. The government will work on policy measures to help," Prime Minister Shigeru Ishiba told a meeting with union and business lobby leaders on Wednesday.

Among major companies, Mitsubishi Heavy Industries electronics conglomerate NEC also responded to union demands in full. Nippon Steel and Panasonic hiked pay but not to levels sought by unions.

Japan's economy long struggled with deflation and before 2023, annual pay increases for two decades were between 1-2%. That left its wage levels well behind the average for the OECD grouping of rich countries.

"This is an important year to ensure that momentum behind wage hikes is established so that Japan's economy can fully escape from deflation," Susumu Takimoto, Hitachi's deputy chief human resources officer, told a press conference.
 
 

The government is said to have set its first targets to boost spending on Japanese cuisine by visitors to the country and in overseas nations.

Sources say the goal is to boost tourist spending on food and beverages to 4.5 trillion yen, or 30 billion dollars, by 2030. That's triple the figure for 2023.

The government is also planning events in other countries to promote Japan's food culture.

It has set a goal to boost revenue from Japanese food-related businesses overseas to 3 trillion yen by 2030. That's nearly twice the figure for 2022.

The targets are expected to be included in the government's five-year plan on agricultural policy.
 

 

The Japanese government plans to increase the country's rice exports by nearly eight-fold to 350,000 tons, worth 92.2 billion yen ($623 million), in 2030 from 2024, according to a policy presented to a ruling party meeting Wednesday.

The plan to boost exports through improved production is also seen as a way to secure sufficient domestic supply of the Japanese staple to avoid shortages.

In its draft for a medium- to long-term basic plan for agriculture, the government kept intact its goal of raising the country's food self-sufficiency rate to 45 percent on a caloric intake basis by 2030 from 38 percent in fiscal 2022.

The figure refers to the ratio of domestically consumed food supplied by producers in the country.

The draft of the basic plan, revised roughly every five years, highlighted the need to enhance productivity in addition to expanding exports, noting that geopolitical risks and a decline in domestic farmers have destabilized food production and supply in the country.

The government aims to increase the total value of agricultural and food exports from 1.5 trillion yen in 2024 to 5 trillion yen in 2030, while boosting food-related spending by inbound tourists from 1.6 trillion yen to 4.5 trillion yen.

For rice production, the plan presented to the Liberal Democratic Party gathering aims to increase the number of farmers managing fields of 15 hectares or larger and reduce production costs from 11,350 yen to 9,500 yen per 60 kilograms to compete with cheaper imports.

Japan consumes approximately 6.6 million tons of rice a year, meaning the 350,000-ton export target would be equivalent to around half a month's domestic consumption.

While there is currently a domestic rice shortage, long-term demand is expected to decline due to Japan's shrinking population, making expanding exports a key focus.

Previous basic plans have used the food self-sufficiency rate as a key numerical target, but the latest one will feature several goals following the amendment to a related law last May. The government will seek Cabinet approval by the end of the month.
 
 

Japanese firms are feeling the most acute shortage of full-time workers since the COVID-19 pandemic, with more than half of firms understaffed, according to a private-sector survey.

Among the around 11,000 companies who responded to the January survey, 53.4 percent said they need more full-time workers, the highest since April 2020 and close to the all-time high of 53.9 percent in November 2018, Teikoku Databank Ltd said.

The sector most in need of full-time workers is information services, with shortages of system engineers, followed by construction.

The survey also found 30.6 percent of firms lack part-time workers, with staffing firms feeling the most acute shortage of nonregular workers ahead of restaurants.

The survey came as economists keep close tabs on whether the robust wage growth seen last year will continue. Major Japanese firms will soon decide their response to demands for pay hikes by their labor unions, wrapping up their annual "shunto" negotiations by the end of this month.

Some 68.1 percent of firms hit by labor shortages are planning to raise wages for full-time workers in fiscal 2025 from April, according to the research institute, apparently to secure and retain necessary workers.

Economists, meanwhile, warn that small and midsize companies will struggle to keep pace with bigger firms that have the financial resources to continue hiking pay.

"We have to be vigilant against the risk of more companies going bankrupt due to labor shortages," the research firm said, noting that the number of such bankruptcies hit a record high in 2024.
 
 

 
A majority of Japanese expect U.S.-Japan economic relations to strengthen under the administration of U.S. President Donald Trump, according to a Japanese Foreign Ministry survey.

Asked in which area relations are expected to strengthen, with multiple answers allowed, 52.1% of respondents pointed to "economy, trade and finance," followed by 49.7% who cited "security, counterterrorism, disarmament and nonproliferation."

The results are believed to have been influenced by Trump's comments including on tariffs.

Also in the survey, 81.5% said they strongly or somewhat agree that the security environment in East Asia is becoming more severe.

With Japan and South Korea marking the 60th anniversary of the normalization of diplomatic relations, 53% said that the two countries should promote efforts to address security challenges including North Korea, and 35.7% and 34.4% called for resolving the issue of Takeshima, the Sea of Japan islets controlled by South Korea, and history-related issues, respectively.

The telephone survey received valid responses from 1,000 people age 18 or over across Japan between Feb. 3 and 9.
 
 

Seven & i Holdings, the Japanese operator of the 7-Eleven convenience store chain, appointed its first foreign CEO and handed him the task of overhauling its business to fend off a $47 billion overseas takeover bid and engineer a recovery.

After a tumultuous six months that began when it received a buyout offer from Canadian Circle-K operator Alimentation Couche-Tard (ACT), Seven & i announced its most far-reaching leadership and business restructuring on Thursday.

Lead outside director Stephen Dacus will succeed Ryuichi Isaka as chief executive on May 27, the company said.

Addressing reporters in Japanese and English, Dacus said talks would continue with Couche-Tard, but significant regulatory hurdles stood in the way of a merger.

"What I do not think our shareholders would want is for us to spend two plus years in limbo just for that to be rejected by the U.S. courts," he said.

Seven & i, which has more than 80,000 7-Eleven stores in 20 countries and regions, also said it agreed to sell its superstore unit to Bain Capital for 814.7 billion yen ($5.50 billion) and that it would sell down its ownership of Seven Bank to below 40%.

Additionally, the retail conglomerate said it will buy back about 2 trillion yen worth of shares through fiscal year 2030, and pursue a listing of its North American convenience store subsidiary by the second half of 2026.

Seven & i has been the target of investor criticism over its capital allocation for years, and in August received the ACT buyout offer that was later raised to $47 billion.

In response, a group led by Seven & i's founding Ito family mounted its own buyout offer, while the company's management said they could chart an independent path to recovery.

Dacus told reporters he could identify with 7-Eleven franchisees as his father had been one, and that he'd worked the midnight shift in the store as a teenager.

The incoming CEO, who previously held executive roles with Walmart and Fast Retailing, also led a special committee vetting the takeover bids. The Ito family group failed to secure a reported $58 billion in funding for its offer, scuttling the deal late last month.

Dacus was replaced as head of the special committee by another outside director, Paul Yonamine, the company said on Thursday.

Seven & i shares surged 6.1% on Thursday after Bloomberg News first reported the share buyback plan.

The buyback looked like an attempt to "try to lift market value and fend off" Couche-Tard, said Lorraine Tan, a regional director at Morningstar.

"Fundamentally, one of my immediate concerns is how they are funding the dividends and buyback," she said. "It appears that they will have to rely on borrowings but we note the talk of a listing for its U.S. business."

Some analysts felt Seven & i's restructuring plan may not derail ACT's bid for the company.

The announced divestitures leave Seven & i mainly with its convenience store businesses at home and abroad, which is what ACT really wants, said Travis Lundy, a special situations analyst who publishes on Smartkarma.

"Because the IPO is not for a while, it would suggest there is still time for ACT to make a deal for the whole shebang, assuming they can come up with a divestment package," he said.

Bain said separately on Thursday it plans to list the superstore unit, known as York Holdings, in about three years after scaling it up through acquisitions.


ISAKA REIGN CRITICISED

Seven & i turned the humble 7-Eleven store into a popular food destination in Japan by serving up fresh sandwiches, rice balls and rows of boxed lunches, changing how millions of people eat.

Isaka has been with the 7-Eleven operator since 1980, becoming its president in 2016. But his tenure has been criticized by foreign investors, including ValueAct Capital, which tried to oust him in 2023 for pursuing what it said was a flawed strategy.

Isaka led Seven & i's $21 billion acquisition of Marathon Petroleum's Speedway gas stations in 2020, outbidding ACT and greatly expanding the company's footprint in the North American market.

But some analysts and investors said the company overpaid for the U.S. assets while remaining saddled with low-margin subsidiaries in Japan, such as its superstore segment.

"They jumped into the global market before they had a solid foundation in place," said independent retail analyst Akihito Nakai. "In hindsight, they got the order wrong."

More recently, U.S.-based Artisan Partners urged the company to consider a competitive bidding process for takeover proposals.

Isaka laid out a turnaround plan in October, aiming to roughly double sales to 30 trillion yen by 2030 by expanding overseas and focusing on fresh-food offerings.

Dacus indicated he would stick to the food-centred strategy, saying Seven & i was working with vendors to bring the products found in Japan to store shelves in the U.S.

"I think if we can bring that same quality of food to our stores in the U.S., that would be a huge and sustainable source of growth," he said.

If ACT succeeds in winning control of Seven & i, it would be the biggest foreign takeover of a Japanese company.

Seven & i was classified as "core" to Japan's national security in September, although the finance ministry said at the time it would not create hurdles for a takeover.
 
 

Indonesia's Coordinating Ministry for Economic Affairs and the Japanese Ministry of Economy, Trade, and Industry (METI) have signed a letter of intent (LoI) on cooperation in developing the Kayan hydropower plant in North Kalimantan.

"For Indonesia, the Kayan hydropower plant is not just an infrastructure project within the framework of AZEC (Asia Zero Emission Community)," the ministry's Deputy for the Coordination of International Economic Cooperation Edi Prio Pambudi said in a statement issued on Wednesday.

"This project is a strategic investment for Indonesia's energy security and decarbonization efforts," he added.

He emphasized that as a strategic partner, Japan will help Indonesia implement energy transition projects and achieve net-zero emissions by 2060.

Therefore, the Indonesian government has urged Japan to strengthen cooperation in implementing practical, scalable, and inclusive energy transition projects in the country.

Meanwhile, Deputy Commissioner for International Affairs at the METI Masanori Tsuruda said that the LoI on the development of the Kayan hydropower plant needs to be immediately followed up by both governments.

The development of the Kayan hydroelectric power plant is challenging, but he is confident that the good bilateral relations between Japan and Indonesia are a strong foundation for the development of this project, he added.

As per information provided on the official website of PT Kayan Hydro Energy the project is expected to be Indonesia's first large-scale renewable hydropower development to support hydro-industrialization.

Once completed, the hydropower plant will supply renewable energy to Indonesia's largest green industrial park in Tanah Kuning, North Kalimantan.

With a capacity of 9 thousand MW and a total investment of USD17.8 billion, it is touted to be the largest hydroelectric power plant in Southeast Asia.

The project will also support Indonesia's target of bringing the share of renewable energy in the national energy mix to 23 percent by 2025 and 31 percent by 2050, as a part of its commitment to a sustainable energy future.
 

Japanese and British foreign and economy ministers on Friday affirmed the importance of free and fair trade at a time when the international economic order has been shaken by U.S. President Donald Trump's tariffs.

The four ministers, meeting in Tokyo, also agreed to work together to strengthen economic security.

The talks were the first meeting of the Japanese and British foreign and economy ministers. A similar dialogue has already taken place between Japan and the United States.

"We'll strive toward maintaining and strengthening the international economic order based on free and fair rules," Japanese Foreign Minister Takeshi Iwaya said at a joint press conference after Friday's meeting.

Japanese economy minister Yoji Muto said Japan and Britain, which share the same values of free trade, will further strengthen ties to counter the rise of protectionist moves worldwide.
 
 

Japanese electronics giant Sony and drinks maker Suntory are stockpiling inventory in the United States while their peers shift production or supply chains in efforts to fend off an evolving threat of U.S. tariffs on the export-reliant economy.

In his latest trade salvo this week, President Donald Trump hinted that he might target Tokyo next, after throwing up new tariff barriers against Mexico and China, low-cost production hubs favoured by key Japanese industries, such as automakers.

The scale of the tariff threat for Japan Inc has been further highlighted by Honda's decision to produce a new model of one of its top-selling cars in the United States, instead of Mexico, Reuters exclusively reported on Monday.

Japan Display, a major supplier of LCD screens to the auto industry, said it was also considering production of some items in the United States, partly to avoid tariffs, a move a recent survey showed is being considered by hundreds of peers.

Major Japanese suppliers to iPhone maker Apple - Alps Alpine  and Murata Manufacturing are among other firms looking to insulate supply chains from escalating trade tension.

"Corporates are now more aware that Japan could also be a target," said Norihiro Yamaguchi, a senior economist at Oxford Economics.

Yamaguchi pointed to Trump's warning that the United States may use tariffs to offset any competitive disadvantage to its manufacturers if Japan and China do not stop reducing the value of their currencies.

The protectionist U.S. president is set to levy reciprocal tariffs globally and industry-specific duties that could further hurt Japan, the world's fourth largest economy, a top exporter to the United States and its biggest source of foreign investment.

Japan has denied devaluing its currency and pledged U.S. investments to assuage Trump's concerns on trade. Its trade minister is set to visit Washington as soon as next week to seek tariff exemptions, domestic media have said.

Japanese companies are particularly exposed to trade duties as many have concentrated for decades on overseas sales, particularly to the United States, to counter weak domestic demand and a shrinking population, Yamaguchi said.

Almost nine in 10 Japanese companies expect Trump's policies to hurt business, a Reuters survey showed last month.

Of these, 72% saw his trade strategy, including more tariffs, as the most detrimental factor, while 26% chose friction between the United States and China, Japan's other major trading partner.

Even before accounting for tariffs that may target Tokyo, think tank the Daiwa Institute of Research projects that a trade war between the United States and other countries including China could shave 1.4% from Japan's $4.2-trillion economy over two to three years.

Stefan Angrick, a senior economist with Moody's Analytics, said it was challenging to quantify the economic damage from tariffs as the business uncertainty they created could be more devastating than any direct impact.
 
 

Raising the ratio of defense spending to gross domestic product is not a top priority in Japan's efforts to boost its defense expenditures, Chief Cabinet Secretary Yoshimasa Hayashi said Wednesday.

"What's important is the substance of our defense capabilities," Hayashi told a news conference. "It's not that the amount and the GDP ratio are put before everything else."

In a statement for a U.S. Senate committee hearing, Elbridge Colby, nominated by U.S. President Donald Trump for undersecretary of defense for policy, urged Japan on Tuesday to raise its defense spending to at least 3 pct of its GDP, higher than the Asian country's target of 2 pct for fiscal 2027.

"Our country will constantly examine its measures to reinforce deterrence and response capabilities and will steadily strengthen its defense capabilities drastically," Hayashi also said.
 
 

The Japanese and British governments are arranging to reaffirm the promotion of energy cooperation between the two countries at a ministerial economic dialogue, according to Japanese government sources.

It will be the first time for Japan and the United Kingdom to hold a two-plus-two meeting focused on economic matters.

The economic ministers intend to sign a memorandum of understanding on cooperation in offshore wind power, with the aim of further strengthening economic ties between the two countries, the sources said.

Foreign Minister Takeshi Iwaya and Economy, Trade and Industry Minister Yoji Muto are set to meet with their British counterparts Foreign Secretary David Lammy and Business and Trade Secretary Jonathan Reynolds at the two-plus-two meeting, which is planned to take place in Tokyo on Friday.

The officials are expected to agree on establishing a consultative framework for strengthening economic security. They will also likely focus on measures to enhance both countries’ energy security.

Prior to the talks, Muto and Reynolds are expected to sign the memorandum of understanding, which will include provisions for joint research on basic technologies related to floating offshore wind power, as well as for ensuring the stability of the supply chain and promoting cooperation between the companies of both countries, the sources said.

The officials are also expected to discuss strengthening their cooperation on helping to rebuild Ukraine, which continues to face Russian aggression, and enhancing relations with countries in the Global South.

The meeting will also affirm the importance of bolstering the functions of the World Trade Organization amid concerns over U.S. President Donald Trump’s protectionist trade policies, such as higher tariffs, according to the sources.

In November, Prime Minister Shigeru Ishida and British Prime Minister Keir Starmer agreed to establish the economic version of the two-plus-two meetings when they met in Brazil. The United Kingdom will be the second country, after the United States, to hold such a meeting with Japan.