The number of corporate bankruptcies in Japan with debts of at least ¥10 million ($63,160) in fiscal 2025, which ended last month, rose 3.5% from the previous year to a 12-year high, Tokyo Shoko Research said Wednesday.

The figure reached 10,505, up for the fourth straight year, reflecting a rise in failures among small companies.

Business failures linked to labor shortages or rising labor costs climbed to a record high of 442 cases. Failures stemming from inflation also increased.
Bankruptcies rose in five out of the 10 sectors surveyed.

In the service sector, including restaurants, the number increased 5.5% to 3,585, also a record high. As food and utility costs continued to rise with no sign of easing, many companies were unable to raise prices and fell into financial difficulties.

The agriculture, forestry, fisheries and mining sector, along with the construction, retail and real estate industries, also recorded more business failures than the previous year.

Total liabilities incurred by failed companies shrank 33.9% to ¥1.56 trillion, falling to the ¥1 trillion range for the first time in four years.

Of the total, cases involving liabilities of less than ¥100 million accounted for 76.7%, highlighting an increase in bankruptcies among small firms and microbusinesses.

In March alone, the number of bankruptcies climbed 8.3% year on year to 924, with total liabilities increasing 16.5% to ¥114.8 billion.

A Tokyo Shoko Research official said that inflation driven by the weak yen could "put pressure on the cash flow of small- and medium-sized enterprises with weak earnings" as the situation in the Middle East starts to affect businesses.

The official predicted that "corporate failures are likely to continue rising."
 
 

Prime Minister Sanae Takaichi said Tuesday that there is a plan to secure crude oil supplies through strategic reserves and alternative procurement sources through the beginning of next year.

She also hinted that she would not rule out calling for energy conservation, amid growing concerns over crude oil supplies following the blockade of the Strait of Hormuz in the Middle East.

“We have established a plan to secure oil supplies beyond the end of the year,” Takaichi told reporters at the Prime Minister’s Office after the budget for fiscal 2026 was passed. “There will be no immediate disruption in the supply” of essential goods, such as medical supplies.

She also indicated that imports from the United States in May are expected to increase to about four times last year’s level for that month, and stated, “We will strengthen our efforts to engage with oil-producing countries to further raise the rate of alternative procurement.”

The prime minister held a telephone conversation with the president of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan, on Tuesday evening and requested cooperation toward ensuring a stable supply of crude oil.

Regarding the possibility of asking the public to conserve energy, the prime minister stated, “We will respond flexibly without ruling out any possibilities, with the possibility of a prolonged situation in mind.”

During a meeting of the House of Councillors Budget Committee on Tuesday, prior to the vote on the budget, she also said, “I am not going to ask people to conserve energy immediately in a way that would put the brakes on economic activity.”

There are calls from both ruling and opposition parties to compile a supplementary budget that includes measures to address soaring crude oil prices.

The prime minister indicated to reporters that the government would rely on reserve funds from the initial budget for the time being and said, “I do not believe we are in a situation that requires the compilation of a supplementary budget right now.”
 
 

 

Japan’s industry ministry has requested major oil wholesalers to sell fuel directly to medical institutions and public transportation operators affected by crude oil supply disruptions amid the worsening situation surrounding Iran.

Designating hospitals and other institutions as critical facilities, the ministry asked wholesalers to supply fuel to them on a priority basis, ministry officials said Monday.

The fuel subject to the request is expected to include fuel oil used in boilers for sterilizing medical equipment.

On Saturday, the ministry requested wholesalers to supply the same volume of fuel year on year to nonaffiliated retailers, which are facing procurement difficulties, the officials said.

Regarding naphtha, a key raw material for chemical products, the ministry said Japan is expected to be able to secure about six months’ worth of domestic demand, compared with its previous projection of four months, thanks chiefly to an increase in supplies from outside the Middle East.
 
 

 

The international trade order should be fundamentally restructured under the leadership of Japan and other middle powers, a research group at the National Graduate Institute for Policy Studies said as part of policy recommendations it released on Friday.

The group at the Minato Ward, Tokyo-based institute is comprised of trade experts and was examining how to restore order after U.S. President Donald Trump’s tariffs caused disruption.

“Opaque subsidies and excess production impede fair competition,” reads the group’s document, referring to China’s financial support for state-owned enterprises. The group argues that the World Trade Organization, which should be addressing such issues, is dysfunctional.

As a first step toward amending the situation, it proposes that middle powers such as Japan and European countries unite to create an alternative framework to the WTO, where they can implement “high-level” rules and “effective dispute settlement mechanisms” and build a track record.

The document suggests that, in the future, the Association of Southeast Asian Nations and South American countries be encouraged to join the new framework, ultimately aiming for “an upgraded WTO regime” that includes the United States as well as China.

The group, called the Research Group on the Transformation and Future Outlook of the International Economic Order, has been discussing how to deal with the United States’ flood of tariffs since last year.

“Rather than reacting ad hoc” to these measures, the group argues, the free trade system should be rebuilt by “eliminating the structural factors that drive such actions.”

At a symposium at the institute on Friday, Haruhiko Kuroda, a former Bank of Japan governor and the study group’s chair, said that “all problems stem from China’s accession to the WTO in 2001,” reiterating the group’s view that deviations from trade rules by some emerging economies must be addressed as the root cause of Trump’s tariffs.

The group has released its recommendations in both Japanese and English. While primarily aimed at the Japanese government, the group intends to share its message widely abroad and expand cooperation among middle powers.
 
 

Even as Japan dips into its vast reserves of oil, the closure of the Strait of Hormuz is fueling concerns about medium and long-term shortages and higher prices for everything from gas at the pump to plastic toys sold in ¥100 shops.

While the government has rushed to assure the public that the overall supply of crude oil and petroleum products used in the making of plastics is sufficient for now, efforts to curb electricity and petroleum consumption could be needed by as early as next month if oil imports coming from the strait have not resumed and domestic reserves, enough to cover about eight months of the country’s consumption, are further depleted. 

"We’ll continue to monitor the current situation regarding the supply and demand of essential goods and their prices, and respond flexibly and won’t rule out any possibilities,” Prime Minister Sanae Takaichi said Thursday during parliamentary questioning about possibly seeking the public’s cooperation to conserve electricity and reduce consumption.

In the meantime, finding non-Middle Eastern suppliers to quickly send oil could be difficult. That’s because, while countries such as the U.S. can export oil, Japan’s domestic oil refining infrastructure could have difficulty turning the raw product into petroleum products quickly and cheaply.

“Crude oil comes in a variety of qualities, ranging from thick, asphalt-like substances to very light, fluid types. Japanese refineries have been designed specifically to process crude oil from the Middle East,” said Go Matsuo, head of the Energy Economics and Society Research Institute during a testimony at the Upper House on March 24.

This oil, accounting for 94% of total imports — 93% of which passes through the Strait of Hormuz — is also cheaper compared to U.S. crude oil. While Japan should keep its options open for other suppliers, it could be more expensive to process U.S. oil than Middle Eastern oil due to its different qualities and the possibility that refineries might need to be modified to handle U.S. oil, Matsuo said. 

Unlike the International Energy Agency, the Japanese government has not yet urged consumers to take specific actions to curb consumption.

The IEA has warned of the severity of the threat, comparing it to the oil shocks of the 1970s. The key difference between then and now is that, while the previous oil crises involved reductions in oil production and supply, there were no major disruptions to distribution. 

On March 18, the agency listed 10 policies advanced economies should implement to conserve supplies. These include reducing highway speed limits by at least 10 kilometers per hour, encouraging remote work for up to three days a week, avoiding business air travel where possible, making Sundays a car-free day in major cities while encouraging the use of trains instead of planes where possible. 

The report also encourages walking, cycling, more efficient use of trucks for transportation and boosting the use of electric vehicles. Immediate implementation of the above could cut worldwide oil demand by 2.7 million barrels per day in the next four months, the IEA estimates.

Japan began releasing some of its oil reserves last month. As of Friday, it had about 230 days, just under eight months, of oil in storage, raising questions about what happens if the Strait of Hormuz remains closed over a long period. 

“If the current situation continues for more than four months, we’ll almost certainly have no choice but to move toward curbing consumption. I expect government policies will initially be implemented in line with the IEA’s 10-point plan,” said Masatoshi Kojima, a professor and oil distribution expert at Momoyama Gakuin University.

While possible oil shortages have led Japan Airlines (JAL) and All Nippon Airways (ANA) to announce new fuel surcharges for international flights starting in June, and there are worries about a spike in gasoline prices, everyday household items could also be subjected to price hikes. 

Naphtha is a hydrocarbon liquid processed from crude oil. It’s used to produce chemicals such as butadiene, ethylene and propylene, which are used for manufacturing solvents, fuels, plastics, and rubber products, among other things. 

A naphtha shortage would create a ripple effect across supply chains, directly impacting mass-produced goods. If sufficient supplies of raw materials can’t be secured easily, the retail sector could face severe impacts. 

“The first items affected by a price spike would be things like disposable diapers, sanitary products, bottled beverages, detergents, and plastic packaging materials,” Kojima said.

“Japan’s ¥100 shops might continue to operate and retain their current name. But their pricing structure could change, with prices falling into roughly three categories: ¥200, ¥150 and ¥100.” 
 

 

An economist urged the government "to present countermeasures ahead of time, assuming the worst-case scenario."

Soaring energy prices caused by the escalating conflict in the Middle East are beginning to impact public services, including transportation and health care.

In mid-March, the Tokyo metropolitan government’s Bureau of Transportation sought diesel for its Toei bus services through open bidding. The bidding was divided into four groups by area for the procurement of 5.4 million liters of low-sulfur diesel for the April-June period.

All bids exceeded expected prices, and none were accepted. The pricing of bids submitted by companies in one group was 50% to 80% higher than in December last year. The bureau managed to procure diesel for April by switching to no-bid contracting at the end of last month.

The metropolitan government is considering seeking no-bid contracts for the May and June procurements as well.

“Bearing in mind that this situation could continue forsome time, both the central and local governments must be quick in examining how to respond,” said a senior metropolitan government official.

The cities of Kawasaki and Kitakyushu have also seen the open bidding process fail for diesel.

On March 30, six ordinance-designated cities operating municipal bus services — Yokohama, Kawasaki, Nagoya, Kyoto, Kobe and Kitakyushu — made an urgent request to the central government, asking it to approach industry leaders to ensure a stable fuel supply, in addition to asking for financial support.


Fewer ferry trips

Ferries have also been affected by the soaring fuel prices, with services reduced.

Segawa Kisen Co., based in Saikai, Nagasaki Prefecture, which operates ferries connecting Sasebo and Saikai, cut back its services from March 23.

After the company was told by a diesel supplier that it could no longer secure diesel, Segawa Kisen bought fuel through the local fishing cooperative and later switched to heavy fuel oil.

Anticipating a prolonged problem, the company has suspended four daytime services that have lower passenger volume — out of the 22 services run each weekday and on Saturdays.

Suo-Nada Ferry Co., based in Shunan, Yamaguchi Prefecture, which runs ferry services connecting Yamaguchi and Oita prefectures, also suspended one round-trip service at night and plans to raise fares from June.


Chance of clinic closures

Health care providers are also grappling with the crisis.
Some components in dialysis machines use materials derived from crude oil. “If the supply of such components stops and patients can no longer receive treatment, it will be a matter of life and death for them,” a support group for the patients said.

One dental clinic in Tokyo is unsure whether it can continue to obtain rubber gloves. The clinic was reportedly told by suppliers that “They are difficult to procure.”

As the clinic only has a one-month supply of gloves in stock, the dentist said, “If this situation continues for an extended period, we may have to consider suspending our services.”

Petroleum products are used in a wide range of medical devices, and an official at the Health, Labor and Welfare Ministry said, “The situation is likely to become worse as time goes on.”

The government has set up a headquarters for ensuring a stable supply of medical and other goods. At a press conference following a Cabinet meeting on Friday, Health Minister Kenichiro Ueno said, “For the time being, we do not anticipate any shortage of supplies.”

Hideo Kumano, a chief economist at Daiichi Life Research Institute Co., said: “Given the possibility of oil prices continuing to rise for some time and of emergency stocks becoming depleted, the government needs to present countermeasures ahead of time, assuming the worst-case scenario. Based on this, local governments and companies should work out strategies to minimize the possible impact.”
 
 

The government has launched an initiative to address supply challenges for medical equipment and other critical items made from petroleum-derived materials, citing disruptions in the distribution of certain petroleum products.

In response to the deteriorating situation in the Middle East, the government convened its first cross-ministry task force on Thursday to ensure the security of essential supplies, including petroleum products.

The task force is composed of senior officials including those from the Economy, Trade and Industry Ministry, the Health, Labor and Welfare Ministry and the Agriculture, Forestry and Fisheries Ministry.

Although the necessary volume has been secured for Japan as a whole, there are supply imbalances and distribution bottlenecks in some areas, said Economy, Trade and Industry Minister Ryosei Akazawa, who is also responsible for ensuring the stable supply of critical materials amid the situation in the Middle East.

Akazawa instructed each ministry to conduct a comprehensive review of the supply of critical materials, saying, “I want the relevant ministries and agencies to cooperate broadly to grasp the reality of supply chains and make all-out efforts to ensure stable supplies by staying one step ahead.”

Although there had been a shortage of heavy oil necessary for the sterilization of medical catheters for newborns, injection needles and blood collection tubes, the necessary amount has been secured for the time being through coordination with oil primary distributors, according to the industry ministry.

The ministry has already addressed issues concerning ethylene oxide gas, which is required for sterilizing medical equipment.

Meanwhile, it now faces emerging concerns over the supply of thinner for paint manufacturing.

The ministry plans to investigate the supply chain to locate points of disruption.

The fisheries ministry plans to introduce a special measure by mid-April that will allow kanpachi amberjack to be imported duty-free once they grow to a specific size.

Maritime transportation fuel shortages have caused delays in importing juvenile kanpachi amberjack for aquaculture that were caught in Chinese waters.

To address this issue, the limit on the maximum size for tariff-free imports will increase from 30 to 50 centimeters in total length.


U.S. helium to cover supply needs

The Economy, Trade and Industry Ministry announced Thursday it will increase alternative helium procurement from the United States, as imports from Qatar have been disrupted by escalating tensions in the Middle East.

The ministry said there are no concerns over a stable supply, as U.S.

products are expected to cover almost all of the total import volume. Applications for Helium include its use in magnetic resonance imaging (MRI) scans.
 

 

The “Mirai Ningen Sentakuki” (human washing machine of the future), a fully automatic bathing machine exhibited at the 2025 Osaka-Kansai Expo, will be exported for the first time this spring.

The decision was prompted by an importer’s official visiting the Expo shortly after its opening in April last year. The official observed visitors’ using the machine and concluded that it offered significant relaxation benefits.

An official of Science Co., the Osaka City-based plumbing manufacturer that developed the machine, said: “We hadn’t even considered expanding overseas. We hope many people enjoy it.”

The futuristic human washing machine envelops the entire body in warm water containing fine bubbles, removing dirt such as sebum. Its main feature is being environmentally friendly, as the machine does not use soap or shampoo. With calming visuals and music played in response to the user’s heart rate, trial sessions during the Expo proved so popular that reservations filled up immediately.

The machine caught the eye of an official from a U.S. company planning a large-scale resort facility in a nature-rich area in the state of Georgia, set to partially open this summer.

The company’s Japan representative responsible for equipment procurement visited the Expo the day after it opened to inspect the machine

. Feeling that it aligned with the facility’s philosophy of harmonizing with the environment and contributing to physical and mental health, he offered to purchase the machine from Science.

According to Science, the device — developed at a cost of about ¥100 million for the Expo — was the only one on display at the time.

While not initially planning to commercialize the machine, Science decided to sell following negotiations with the representative and due to the high number of people who were unable to secure reservations at the Expo.

Domestically, Science began delivering units to hotels and other facilities starting late last year.

Science plans to export a total of five units to the U.S. resort in stages, though the price has not been disclosed.

The representative said that while people in the United States do not have much of a habit of taking baths, the machine offers an experience similar to meditation, which can appeal to many. He added that he would be delighted if people could appreciate the excellence of Japanese technology.”
 

 

 

 

The average retail price of regular gasoline in Japan fell by 7.50 yen from a week earlier to 170.20 yen per liter as of Monday, the industry ministry said Wednesday.

After hitting a record high of 190.80 yen on March 16 amid escalating tensions in the Middle East, the average pump price marked a second consecutive weekly drop, supported by the government's reinstated subsidies aimed at easing the impact of rising crude oil costs.

The gasoline price is now close to the government's goal of about 170 yen per liter.

Prices had surged following the U.S.-Israeli attacks on Iran and the effective blockade of the Strait of Hormuz, a critical oil transport waterway.

The government began providing subsidies to oil wholesalers starting with shipments on March 19, saying that the support would be reflected in retail prices within one to two weeks.
 
 

Indonesia and Japan have signed 10 Memorandums of Understanding (MoUs) valued at USD23.1 billion or Rp392.7 trillion, marked during President Prabowo Subianto's official visit to Japan. This move highlights the importance of strategic cooperation amid global economic changes.

The MoUs aim to elevate the RI-Japan partnership to a higher level. It is expected to strengthen the bilateral economic ties that have existed for 68 years. Japan has been Indonesia's fourth-largest export destination with a value of USD17.61 billion.

Prabowo emphasized the importance of economic collaboration in confronting global dynamics. This collaboration is seen as the key to stability and long-term relations between the two nations. Japan is also a major investor in Indonesia, with an investment value of USD3.13 billion.

This partnership demonstrates the intent of both countries to modernize bilateral economic frameworks. The Indonesia-Japan Economic Partnership Agreement (IJEPA) is being revised to enhance market access and economic collaboration.

Japan's investment lines in Indonesia include the automotive, transportation equipment, chemical, and pharmaceutical sectors. Japan also plays a role in the development of strategic infrastructure such as transportation, ports, energy, and urban projects.

Prabowo stated that Japanese investment consistently brings quality, technology, and long-term commitment. Based on this, the strategic relationship is expected to continue to grow stronger.

The partnership is not just focused on traditional economic aspects. Other focuses include energy transition, green growth, industrial transformation, and downstream industries. This aims for a more adaptive, future-based collaboration.

Airlangga Hartarto revealed that the revision of IJEPA is expected to strengthen the foundations of cooperation, including expanding collaboration and modernizing the economy for mutual benefit.

With strong support from both countries, this collaboration affirms concrete steps towards a more modern and resilient partnership. This move is expected to be a robust foundation for future economic and strategic partnerships.
 
 

Japan's private-sector rice inventories totaled 3 million tons at the end of February, up 1.5 times from a year earlier, the agriculture ministry said in a survey report Tuesday.

Rice sales have remained sluggish, partly due to high prices, causing inventories to swell to their highest level in a decade.

Private-sector inventories represent the combined holdings by aggregators, such as Japan Agricultural Cooperatives, or JA, and wholesalers.

Stocks held by rice aggregators increased by 740,000 tons from a year earlier to 2.33 million tons, while inventories held by wholesalers rose by 210,000 tons to 670,000 tons.

The inventory level equaled 43 pct of expected demand for the year through June, the highest level since the survey began.
 
 

 
Japanese Vice Minister of Finance for International Affairs Atsushi Mimura on Monday hinted at the possibility of Japanese authorities intervening in foreign exchange and other markets after the dollar rose above 160 yen over the weekend.

"There are voices that speculative movements are increasing in the foreign exchange market," Mimura told reporters at the Finance Ministry.

Referring to recent trends in crude oil futures trading, he said, "If this situation continues, it will be necessary to take decisive measures soon," adding, "Our sights are directed in all directions."

It is the first time that Mimura has used the phrase "decisive measures" since he assumed his current position in the summer 2024.

A plan to stem the depreciation of the yen by intervening in the crude oil futures market and curbing speculative trading is being considered by some government officials, informed sources said.
 

 

 

 

 
Mitsubishi UFJ Financial Group, Inc. will raise the mandatory retirement age at its subsidiary banks and securities firms to 65 starting in fiscal 2027 as part of efforts to secure excellent employees regardless of age.

Mitsubishi UFJ Trust and Banking Corp. will revise its system of rehiring employees who are 60 years or older as contract workers and instead continue to employ them as regular employees until age 65.

While the company has previously reemployed 80% to 90% of its employees as contract employees under an evaluation and compensation system comparable to that of regular employees, it is now moving to continued employment to better reflect actual working conditions.

Mitsubishi UFJ Morgan Stanley Securities Co. will also raise its retirement age to 65.

MUFG Bank, Ltd. will not only raise the retirement age, but also abolish its system of reducing salaries past the age of 55.

The bank will also raise the salaries of non-management employees, who are primarily younger, by up to 7% and increase the starting salary for university graduates to ¥300,000 a month starting in fiscal 2026.

According to a survey in June 2025 by the Health, Labor and Welfare Ministry of 238,000 companies that employ more than 21 employees, about 30% of them had their retirement age at 65 or older. The number of such companies has been increasing, the ministry said.
 
 

 

Major League Baseball’s Los Angeles Dodgers and Japanese fast-fashion retailer Uniqlo have signed a partnership deal that includes the team’s ballpark adding Uniqlo Field to its name.

Tadashi Yanai, chairman and chief executive officer of the retailer’s parent company Fast Retailing Co., told The Yomiuri Shimbun on Wednesday that “the Dodgers are like a turbo engine” for the company to expand business in North America.

Following are excerpts from the interview.

The Yomiuri Shimbun: What was the reason for entering into this partnership deal?

Yanai: The Dodgers always think about what they can do to delight their fans. We need to learn from them in this regard. Uniqlo must become a brand loved by Americans.

Just coming to the stadium is fun at Dodgers games. We want to create that kind of experience in our stores, too.

Q: Will this agreement serve as a driving force for your North American business?

Yanai: The Dodgers are like a turbo engine. If we combine the Dodgers’ strength with ours, it could become two or three times, or perhaps even ten times as powerful.

Q: Will there be positive effects beyond North America?

Yanai: I certainly think so. Los Angeles is the gateway to Latin America and Asia. We will open many great stores in Los Angeles from this point on.

I expect people from Latin America who come to shop here would want to visit our stores back home as well.

Q: Uniqlo places a strong emphasis on social contribution.

Yanai: Companies that cannot contribute to society should not go abroad. Doing things that make money for themselves would make no one in that country happy.

Companies are not welcomed unless they contribute in some way to that society and the world.

Q: Are there any similarities between sports and business?

Yanai: I think sports and business are similar. Both require teamwork, and you must win. You must work hard to win and make the audience want to come back and watch again. In our case, we must think about the customers who come to buy our products.

Q: What is the appeal of the Dodgers?

Yanai: They were the first to sign a black ballplayer in MLB, and that must’ve taken courage. Pitcher Hideo Nomo went to the Dodgers and performed brilliantly despite facing opposition in Japanese professional baseball.

We need people with the courage to break down barriers, and those are the people that the Dodgers have supported.

Q: How do you view Shohei Ohtani?

Yanai: He has the heart, the skills and the physical strength, and he’s smart, too. He has it all. His answers at press conferences are textbook perfect.

Not a single word is wasted, and nothing is left unsaid. Even when he’s struggling, he thinks things through and turns it around. He considers the whole team and demonstrates leadership by figuring out what needs to be done for the team to win.

That’s amazing. A lot can be learned from that attitude. If he were to go into business, I think he’d become a top-tier executive.
 
 

Japanese industrial conglomerate Toshiba said Friday it will start negotiations with Mitsubishi Electric and chipmaker Rohm to merge their power semiconductor businesses, as international competition over the sector heats up.

The move comes as Japan has been pushing for a greater presence in the global semiconductor market.

If realized, the alliance would create the world's second-largest power chip group, according to local media.

Billed as able to drastically reduce power loss, power semiconductors are seen as pivotal to sectors ranging from railway to automotive and renewable energy.

Toshiba Electronic Devices & Storage Corporation (TDSC), a subsidiary of Toshiba, signed a memorandum of understanding to begin discussions with Mitsubishi and Rohm.

"As the global competition over the semiconductor industry keeps intensifying, TDSC and Rohm have long explored the possibility of coordinating in the power semiconductor sector," Toshiba said.

With Mitsubishi Electric now on board, too, a merger would make "our business scale and technological infrastructure competitive in the global market," Toshiba said.

The agreement was also signed by Japan Industrial Partners and TBJ Holdings.

Japan currently holds less than 10% of the global chip market, but the government is investing heavily in new factories in a bid to change that.

Earlier this month, Prime Minister Sanae Takaichi's administration set a new sales target for domestically produced microchips, aiming for an eightfold increase by 2040 compared with 2020 levels.

The 2040 target of ¥40 trillion ($250 billion) far exceeds sales of around ¥5 trillion in 2020, according to figures from the ministry of economy, trade and industry.
 
 

The number of foreign visitors to Japan is rising, and in response, luggage storage services are becoming more diversified, resulting in the growing popularity of “hands-free” sightseeing.

Multiple services are available in Ueno in Taito Ward, Tokyo, an area bustling with tourists.


Easing train crowding

At 9 a.m. on a weekday in mid-February, foreign tourists could be seen pulling suitcases to the luggage storage facility outside the ticket gates at Keisei Electric Railway Co.’s Keisei Ueno Station. Narita Airport can be accessed directly from the station.

Staff members greet the tourists in English or Chinese, asking, “How many pieces of luggage?” After depositing their luggage at the facility, the foreign visitors thank the staff and disappear into the city.

The fee for storing a single suitcase is ¥1,000 per day. Just 2½ hours after opening, the facility had already taken in over 210 pieces of luggage, at which point a “FULL” sign was posted.

According to Chiba Prefecture-based operator Community Keisei Co., most customers store their luggage for a few hours or half a day.

Many use the service on travel days or the final day of their trip — when they may not be able to leave their luggage at their accommodation — and then go sightseeing in nearby areas like Ueno and Asakusa.

On the other hand, some people leave their luggage for up to two weeks or so while touring other cities.

On the day, a 34-year-old woman from Taiwan deposited her luggage for a four-day period. “I’m going to Nagano to see the snow,” she said.
The station also launched an airport luggage delivery service in January.

Luggage is accepted in the morning and delivered to Narita Airport by that evening, for a fee of ¥4,000 per suitcase. The aim of the service is to improve convenience for tourists and create more space on trains.

JR Ueno Station is expanding its luggage storage capacity by installing lockers at about 70 spots. Some of the lockers include a service in which the luggage can be delivered to hotels and other locations.


Hands-free sightseeing

Another service in the area allows users to search for and make reservations for nearby luggage storage spots online. Luggage is accepted by various shops registered with the service.

Big Beat Smile Garage, a motorcycle accessories shop in front of JR Ueno Station, stores luggage on its second floor. “Foreign customers come in looking puzzled, asking, ‘Do you take luggage here?’” said Takahiro Ishigami, who runs the shop.

Molek, a real estate company near the station, also registered with the service last year. They have prepared English guides regarding the service.

Shinichi Kudo, president of Tokyo-based ecbo, which operates the “ecbo cloak” storage service, said, “Stores can efficiently utilize spare space to generate income, and customers can store their luggage efficiently by making advance reservations.”

More than 2,500 locations nationwide, including hair salons and cafes, have signed up to the program. About 400 7-Eleven convenience stores across 26 prefectures joined the initiative in December.

By leaving large luggage behind, travelers can expand their range of activities. The benefits for tourist destinations are also significant.

In Taito Ward, four companies — including a luggage storage service provider and a travel planning app operator — jointly launched the “Machi Hop Project” last autumn. The project provides online luggage storage services and introduces spots that are best enjoyed hands-free.

“We want to alleviate the concentration of visitors at famous sites like Sensoji temple and spread the economic benefits of tourism to the surrounding areas,” said Takumi Sugahara, who conceived the project.

“We want foreign visitors to enjoy less well-known parts of Japan — such as small shrines and back-alley izakaya.”

Luggage takes up space in trains and buses, makes it more difficult to navigate narrow sidewalks and can make a clattering sound when on the move — all of which can contribute to overtourism.

“When overtourism occurs, foreign tourists become a source of irritation for local residents. Improving services such as luggage storage serves a dual purpose: creating economic value and solving social issues,” said Kazuo Takahashi, a professor of tourism marketing at Kindai University.

“It would be good to see the development of a nationwide system that promotes hands-free tourism, including collaboration between service providers.”

 

Overseas examples

In Taiwan, Seoul and other overseas locations, services allowing tourists to check in their luggage for their flight before traveling to the airport have been introduced.

These services are available at major train stations connected to the airport. They enable travelers to enjoy their trip unencumbered until the very end, while also streamlining the journey to the airport and pre-boarding procedures.

The Land, Infrastructure, Transport and Tourism Ministry is conducting pilot projects in locations such as Osaka City, exploring the feasibility of implementing similar systems.
 

 

The Japanese government began releasing the country's state oil reserves on Thursday, in an effort to ensure a stable supply of oil products amid Iran's de facto closure of the Strait of Hormuz.

This is the first such release since the previous one in response to Russia's invasion of Ukraine in 2022.

This time, about 8.5 million kiloliters, equivalent to 30 days of domestic consumption, will be released from oil reserve bases across the country.

 

On Thursday, crude oil was transferred from the Kikuma national petroleum stockpiling base in the western city of Imabari, Ehime Prefecture, to a nearby oil refinery operated by Taiyo Oil Co. via pipeline.

The government has already been releasing 15 days' worth of oil from private-sector reserves since March 16.
 
 

New partnership aims to boost Japan’s low e-waste recycling rates while strengthening domestic resource security


Japan Strengthens Domestic Recycling With Itochu-ERI Collaboration

Japan is taking steps to improve its handling of electronic waste, with Itochu partnering with U.S.-based Electronic Recyclers International (ERI) to launch a new recycling venture.

The project will centre on recovering valuable materials from discarded electronics, commonly referred to as “urban mines”. With only around 20% of e-waste currently recycled in Japan, there is considerable room for expansion. 

The initiative reflects rising concerns over dependence on imported resources in an increasingly uncertain geopolitical environment. By working with ERI, which specialises in IT disposal and recycling, Itochu hopes to strengthen domestic recycling while supporting a market expected to grow steadily. 


Iran War Drives Surge In Chinese Renewable Energy Stocks

Investors are shifting towards Chinese renewable energy stocks as the Iran war drives up oil prices and intensifies concerns over energy security.

The trend reflects expectations that countries will accelerate investment in alternatives to fossil fuels. China, which leads in sectors such as solar, wind, batteries, and electric vehicles, is seen as particularly well placed to benefit.

Since the conflict began, these stocks have outperformed the broader market. Many analysts expect continued government support and rising export demand, as countries rethink their energy mix and look for more stable, long-term options.

 

Totalenergies Shifts From U.S. Offshore Wind To Fossil Fuel Investment

TotalEnergies is stepping back from offshore wind projects in the United States and redirecting nearly $1 billion into fossil fuel investments instead.

Under an agreement with the U.S. government, wind leases off New York and the Carolinas will be cancelled, and the company will be reimbursed for what it has already spent. The money will now be invested in liquefied natural gas, oil, and gas production.

This reflects a wider shift in policy under President Donald Trump, with a stronger focus on domestic fossil fuels. While some argue this will improve energy reliability, others see it as a setback for clean energy progress.

EDF Faces EU Probe Over State Aid For Nuclear Expansion

EDF is expected to come under investigation by the European Union over a large state aid package linked to new nuclear power plants in France.

The plan involves building six reactors to replace ageing infrastructure and meet growing electricity demand in the coming years. However, EU regulators are concerned that the financial support could further strengthen EDF’s dominant position in the market and make it harder for competitors to enter.

The investigation could delay the project, which is central to France’s energy plans. Austria is also likely to challenge the proposal, given its long-standing opposition to nuclear power.
 

Sogo & Seibu said Wednesday that it would close its iconic Seibu department store in Tokyo's Shibuya Ward at the end of September.

The closure comes as the company failed to reach an agreement on a contract extension with the rights holder for the land and buildings housing the store over the redevelopment of the site.

The Shibuya store opened in April 1968 in an area long known as a youth-culture hub. It anchored the company's department store network, but in recent years it has posted persistent losses.

The closure will cover the A building, which includes the food floor, as well as the B building, housing clothing and sundry goods tenants, and a parking hall. Sogo & Seibu employees currently working at the Shibuya store will be assigned to other posts within the company.

The Loft building, which is owned by Sogo & Seibu, and the Movida building, housing a Muji household goods shop, will remain in operation.

"We would like to express our sincere gratitude to everyone for their support for our Seibu Shibuya store over the years," Sogo & Seibu said.

The move leaves Sogo & Seibu with nine outlets nationwide, with the Seibu Ikebukuro store as its sole presence in Tokyo.
 
 

The average retail price of regular gasoline in Japan fell 13.1 yen from a week earlier to 177.7 yen per liter as of Monday, the industry ministry said Wednesday.

The drop came after the government resumed subsidies for oil wholesalers last week, in the face of surging crude oil prices amid the deteriorating situation in the Middle East.

The decline is the second-largest single-week fall on record, following a 21.7-yen drop just after the provisional gasoline tax rate expired in 2008.

Still, the average gasoline price remains elevated. In mid-February, it hovered around 150 yen per liter.

To ease oil supply concerns and stabilize prices, the government will release state oil reserves starting Thursday, in addition to tapping into private-sector reserves.
 
 

The Japanese government will consider compiling a provisional budget in the event that the fiscal 2026 regular budget is not passed by the April 1 start of the year, an official said Monday.

"We will consider a provisional budget in preparation for unforeseen circumstances," Chief Cabinet Secretary Minoru Kihara was quoted as telling senior members of the ruling Liberal Democratic Party.

Kihara made the remark at a meeting with LDP members, such as Masaji Matsuyama, chairman for the party's members in the House of Councillors, the upper chamber of parliament, and Junichi Ishii, secretary-general for the party in the same Diet chamber. Matsuyama disclosed the remark to reporters.

 

Prime Minister Sanae Takaichi aims to enact the regular budget by the end of this month.

The draft budget has cleared the House of Representatives, the lower chamber, but the outlook is uncertain in the Upper House, where the LDP-led ruling camp is a minority force.
 

 

Japanese stocks dropped after U.S. President Donald Trump’s threats of attacks on power plants around the Strait of Hormuz exacerbated market concerns over climbing oil prices and fueled risk-off sentiment.

The Nikkei 225 fell as much as 5% to 50688.76 on Monday while the broader Topix slumped as much as 4.5% to 3447.34, heading for a technical correction. Tokyo’s market is catching up with global benchmarks after a public holiday on Friday.

Electronics and banks contributed most to declines on the Topix, while chip-related firms like Renesas Electronics and Lasertec were among the Nikkei’s worst performers. Skyrocketing oil prices — Brent was trading around $111 per barrel as of 10 a.m. in Tokyo — are sapping risk appetite across sectors.

"Whatever happens now, what has become crystal clear is the outlook for near term inflation," said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors, in a note.

Trump's 48-hour ultimatum for Iran to reopen the Strait of Hormuz has "notched up the temperature," making escalation of the conflict look more likely, he added.

Anvarzadeh expects "overvalued" AI-related stocks, like cablemaker Fujikura, to be among the worst hit by inflation fears. Fujikura lost as much as 6.7% Monday.

Climbing bond yields are further amplifying caution in the equity market, said Kazuyuki Muramatsu, head of investment management at Nagomi Capital. Japan's 10-year bond yield rose six basis points to 2.32% on Monday, near its highest level since 1999.

"The market sees this as a 'bad' rise in yields," so it's a downside even for bank shares, which would usually get a tailwind from higher yields, Muramatsu said.
 
 

Japan will take "all possible steps" to address speculative moves in the foreign exchange market, the country's top currency diplomat said Monday, with the yen remaining under pressure as the conflict in the Middle East continues to escalate.

"Some market participants would say that speculative moves in crude oil futures are affecting the currency market," Atsushi Mimura, vice finance minister for international affairs, told reporters.

The U.S. dollar held steady in the lower 159 yen range in Tokyo as investors continued to seek safety amid fears that the Middle East crisis could be prolonged.

When the dollar rose to a similar level in January, it dropped sharply on signs that Japanese and U.S. authorities could step in to curb the yen's slide.

Mimura said the Japanese government will take into account "the impact on people's livelihoods and the economy." A weaker yen raises the cost of imported energy and goods.
 
 

 

Against the backdrop of soaring prices, a number of major companies across a wide range of industries, including automobiles and electronics, fully agreed on Wednesday to high wage increases as demanded by labor unions during this year’s shunto spring wage negotiations.

Many companies apparently fully accepted pay hike demands as they prioritized employees’ morale amid a severe business environment.

However, as negotiations with small and midsize enterprises are set to begin in earnest, rising crude oil prices due to the deteriorating situation in the Middle East could negatively impact their wage increases.

The Japanese Trade Union Confederation (Rengo) has set an overall target of at least a 5% increase in this year’s negotiations. For small and midsize enterprises, the target increase is at least 6%.

According to the Japan Council of Metalworkers’ Unions, all 49 member unions representing industries including the automobile and electronics sectors received decisions by 12:30 p.m. on Wednesday. Improvements to a pay-scale increase per month for base pay had been secured. The average wage increase stands at around 5.1%.

At a press conference on the same day, Akihiro Kaneko, president of the Confederation of Japan Automobile Workers’ Unions, expressed satisfaction. “Although the environment surrounding the automobile industry is severe, I highly appreciate the fact that we were able to secure the requested level,” he said.

All seven major automakers responded with wage increases that met or exceeded the requested amounts, an improvement from 2025, when only three companies did so. The move aims to boost employees’ morale even as business performance remains sluggish due to factors such as U.S. tariffs.

Nissan Motor Co., which gave its response before Wednesday, is projected to post a net loss for the fiscal year ending March 2026, while Mazda Motor Corp. and Mitsubishi Motors Corp. also reported net losses for the April-December 2025 period.

A Mitsubishi Motors executive stated, “Precisely because the world is in turmoil, we want employees to focus on their work rather than prolonging wage negotiations.”

Honda Motor Co. also offered to fully meet the proposed amount of ¥18,500, including a ¥12,000 pay-scale raise and a regular pay increase.

The company is expected to post a net loss of up to ¥690 billion in its consolidated financial results for the fiscal year ending March 2026, mainly due to losses related to electric vehicles.



Steel sector falls short of demands

Major electronics manufacturers have reported solid performance driven mainly by increased demand for power transmission and distribution equipment as well as artificial intelligence services.

Five of the seven firms, including Hitachi, Ltd. and Mitsubishi Electric Corp., offered full-scale raises, with all companies exceeding offers from the previous year.

Mitsubishi Electric’s rate of increase, which combines a pay-scale raise and a merit-based pay increase, was 7% on average – the highest level since the current negotiation system was adopted in 2008.

Meanwhile, raises offered by major steelmakers fell short of demands for pay-scale increases due to deteriorating market conditions caused by overproduction in China.

JFE Steel Corp. responded to a demand of ¥15,000 with an offer of ¥7,000 – less than half the amount. The company had met the full ¥15,000 demand in 2025.

A public relations official from the company said: “We had anticipated an improvement in the business environment, but the severe conditions have persisted. The outlook remains uncertain.”

In response to the ¥15,000 increase demand, Nippon Steel Corp. offered ¥10,000 and Kobe Steel, Ltd. offered ¥13,000 — both lower than the previous year’s figures.
 
 

The Bank of Japan on Thursday kept its benchmark interest rate unchanged, as developments in the Middle East complicate the future path of its monetary policy.

With the Iran war threatening to drive up inflation and dampen economic growth, the central bank is bracing for the upside and downside risks to the price and economic outlooks.

BOJ Governor Kazuo Ueda said at a press conference after its two-day policy meeting through Thursday that he "needs more time" to understand the impact the war will have on the economy.

"We have decided to keep the policy unchanged as risks associated with rising crude oil prices have newly emerged," Ueda said. "We will make an appropriate policy decision next month after examining the new risk scenario and outlook when more data become available."

The bank has been seeking to normalize its monetary policy since it ended unconventional monetary easing two years ago to stably achieve its 2 percent inflation target.

If the central bank continues raising its policy interest rate to tame possible higher inflation at a time when an energy price surge threatens to dent demand, the move could add pressure on growth, while leaving the policy intact could fuel inflation coupled with the yen's recent weakening. A weaker yen increases import costs.

Still, Ueda said more policymakers are aware of the upside risk to inflation.
The U.S. Federal Reserve, which also decided to keep its rate steady at its meeting through Wednesday, also warned of higher inflation with Fed chief Jerome Powell emphasizing uncertainty over the U.S. economic outlook from the Iran war.

At the policy meeting, the BOJ left the key rate at around 0.75 percent for the second consecutive meeting.

The Japanese central bank lifted its policy rate to a 30-year high of around 0.75 percent from 0.5 percent at its December meeting.

The latest decision to stand pat on the rate was delivered in an eight-to-one vote, with hawkish policymaker Hajime Takata proposing a rate hike to around 1.0 percent.

The nationwide core consumer price index, excluding volatile fresh food, in Japan is expected to come under "upward pressure," affected by the rise in crude oil prices, the bank said in a post-meeting statement.

The yen's recent depreciation against the U.S. dollar is also threatening to raise import costs for resource-poor Japan.

The dollar came within striking distance of the 160 yen mark overnight, a level unseen since 2024 prior to the BOJ's meeting, prompting Finance Minister Satsuki Katayama to say Japanese authorities are on "full guard" and ready to consider all possible options.

In the wake of the U.S.-Israeli launch of attacks on Iran, the dollar has drawn buying, as a safe-haven asset in times of crisis. Tokyo shares have also faced steep declines with uncertainties heightening over the effects of the Middle East crisis on inflation and the broader economy.

The war with Iran has effectively closed the Strait of Hormuz, through which many oil tankers pass, including those bound for Japan. There has also been damage to liquefied natural gas export facilities.

Soaring crude oil prices will likely push up the prices of many products, from gasoline to plastics. Electricity and gas bills could also rise if liquefied natural gas prices climb alongside oil prices.
 
 

Japan's Suzuki Motor Corp. has unveiled to the media its second biogas plant in India, which processes cow dung to produce methane for compressed natural gas vehicles.

The plant in Bhukhala, Gujarat, shown on Thursday, ferments cow dung collected from farmers and extracts methane, which is sold at an attached filling station.

Biogas derived from cow dung is considered a carbon-neutral fuel and contributes to raising farmers' incomes.

The plant was built as part of a demonstration project launched by the vehicle maker mainly in cooperation with a local dairy industry association.

The facility, which opened in January, processes 100 tons of cow dung per day and produces about 1.5 tons of biogas daily.
 
 
 
 

Japan's House of Representatives on Thursday approved two academics regarded as reflationists as new members of the Bank of Japan's Policy Board.

At the day's plenary meeting, the lower chamber of the Diet, the country's parliament, confirmed the government's nominations of 22 people at 11 institutions, including Chuo University professor Toichiro Asada and Aoyama Gakuin University professor Ayano Sato for the nine-member policymaking board of the central bank.

The House of Councillors, the upper chamber, is also expected to confirm the batch of nominations at a meeting Monday, completing the parliament's approval procedures for the 22 individuals.

Asada and Sato, who are set to succeed two retiring Policy Board members, are considered to be in favor of reflationist policies, namely monetary easing and active public spending.

Their nominations gave rise to a view that Prime Minister Sanae Takaichi, who promotes her "responsible and proactive" fiscal policy, moved to warn against the BOJ's stance of continuing to raise interest rates.
 
 

Japan's seasonally adjusted core machinery orders in January fell 5.5% from the previous month, after a spike driven by large-scale orders in December, Cabinet Office data showed Thursday.

The private-sector orders excluding those for ships and equipment used at power companies, closely watched as a leading indicator of corporate capital spending, came to ¥982.4 billion.

The government agency kept its basic assessment intact, saying that machinery orders are showing signs of picking up.

Many private think tanks expect corporate capital spending to remain firm, but concerns linger over the conflict in Iran.

"If (the military conflict) drags on, there is a risk that appetite for capital spending will shrink at once," said Takeshi Minami of Norinchukin Research Institute.

Machinery orders from manufacturers dropped 12.5% to ¥435.8 billion. In the previous month, the sector was boosted by large-scale orders from the nonferrous metal industry and the oil and coal sector.

Core orders from nonmanufacturers rose 6.8% to ¥563.2 billion, driven by orders for computers and road vehicles including trailers.

Total machinery orders, including those from the public sector and abroad, declined 2.0% to ¥3,942.1 billion.
 
 

The average retail price of regular gasoline in Japan as of Monday surged 29 yen from a week earlier to hit a record high of 190.8 yen per liter, the industry ministry said Wednesday.

The jump was driven by a spike in wholesale prices after crude oil prices surged following the effective closure of the Strait of Hormuz, a key oil shipping route, in the wake of escalating tensions over Iran.

The Japanese government will resume subsidies to oil wholesalers Thursday, aiming to lower the average pump price to around 170 yen per liter.

With major wholesalers expected to raise their prices further, the initial amount of subsidies will be as much as 30.2 yen per liter. It is expected to take a week or two for the effect of the subsidies to be reflected in retail prices.

Retail prices rose for the fifth consecutive week, with all 47 prefectures of the country logging increases. The highest price was 198.5 yen in Yamagata, northeastern Japan, while Okayama in western Japan logged the largest weekly rise, at 32.1 yen.
 
 

Japanese exports rose 4.2 per cent year-on-year in February, up for a sixth straight month, data from the Ministry of Finance showed on Wednesday.

The result compared with a 1.6 per cent increase expected by economists in a Reuters poll.

Imports grew 10.2 per cent in February from a year earlier, versus an 11.5 per cent increase expected by economists.

The trade balance stood at a surplus of 57.3 billion yen (S$460.6 million), compared with the forecast of a deficit of 483.2 billion yen.
 

Key Points

-    Nissan will export the Murano SUV built in Smyrna, Tennessee, to Japan beginning early next year. It marks the first American-made Nissan sold in Japan since the 1990s.

-    Nissan is the latest of Japanese automaker to announce such plans after regulators loosened regulations to more easily allow automakers to import vehicles from the U.S. to Japan.

-    Under the new rules, U.S.-made vehicles don’t have to meet Japanese vehicle certification as long as they comply with American standards.
 
Nissan Motor plans to join fellow Japanese automakers Toyota Motor and Honda Motor

in exporting U.S.-produced vehicles to Japan following changes to the country’s vehicle import rules reached through a trade deal last year with the Trump administration.

The company on Tuesday said it will import the midsize Nissan Murano, built in Smyrna, Tennessee, to Japan beginning early next year. It marks the first American-made Nissan sold in Japan since the 1990s, according to a Nissan spokeswoman.

“With the introduction of this model, Nissan aims to further strengthen its product lineup in Japan and meet the diverse needs of Japanese customers,” Nissan CEO Ivan Espinosa said in a statement.

Nissan is the latest Japanese automaker to announce such plans after changes to regulations meant automakers could more easily import vehicles from the U.S. to Japan. Those rules were put in place as part of a trade deal that also included easing U.S. tariffs enacted by President Donald Trump.
 
Under the new Japanese regulations that were confirmed last month, U.S.-made vehicles don’t have to meet the country’s vehicle certification as long as they comply with American standards.

Nissan confirmed plans to import the Murano from the U.S. with the steering wheel on the left-hand side of the vehicle, which is typical for Americans but not in the Japanese market.

Automakers typically have to tailor vehicles to meet safety and other regulations for different countries globally. They can range from things such as lighting and side mirrors to more complex parts such as the location of the steering wheel.
 
 

Fans of Wasabeef potato chips may have to brace themselves for emptier shelves.

Japanese snack maker Yamayoshi Seika announced that it has suspended production of several products due to difficulties securing fuel, forcing it to halt factory operations.

The snack maker said it has stopped producing six items — including its flagship wasabi and beef-flavored potato chips — as heavy oil used in manufacturing became difficult to procure, citing disruptions linked to the situation in the Strait of Hormuz.

The company has not set a timeline for resuming production.

Yamayoshi also temporarily closed its direct sales store and online shop from Monday and has stopped accepting new orders. The company said orders already placed will be fulfilled.

Retail availability will be limited to existing inventories at supermarkets and other outlets.

“We sincerely apologize for the inconvenience and trouble this will cause our customers and business partners,” the company said in a notice, adding it is working to secure fuel and resume operations as soon as possible.

The Strait of Hormuz, a key maritime chokepoint for global oil shipments, has been effectively blocked by Iran amid a war with the U.S. and Israel. The chokepoint handles a significant share of global crude exports, and any disruption can quickly tighten fuel supply.

For countries such as Japan that are heavily dependent on imports, that can translate to unexpected knock-on effects — including, as evidenced in this case, on the snack aisle.

Yamayoshi’s production halt is one of the first tangible impacts of the oil shock on Japanese consumers.

Its products’ sudden unavailability sparked a wave of online dismay among fans of the potato chips on social media, with many netizens expressing concern about other daily goods that might disappear off the shelves as well.
 
 

Many Japanese firms remain underinsured despite rising exposure to cyber-incidents.

HDI Global SE’s Japan unit plans to expand its cyber-insurance capabilities whilst tightening underwriting discipline as companies face rising digital threats and insurers seek to protect profitability, its country head said.

Managing Director Hiro Yamasaki said cyber-risk is becoming one of the most rapidly evolving threats for businesses as attacks grow more frequent and sophisticated, increasing the risk of operational disruption.

“Cyber-risk is definitely one of the fastest-evolving risks for businesses today,” he told Insurance Asia. “The frequency and sophistication of attacks continue to increase and the potential business interruption impact can be severe.”

Yamasaki said Japan’s cyber-insurance market still has room to expand as many companies remain underinsured despite rising exposure to cyber-incidents.

A study by Aon Plc found that more than a quarter of organisations in Japan reported cyber-related losses, underscoring the scale of the risk.

However, far fewer companies have formal business continuity plans, pointing to gaps in preparedness that could affect insurance coverage and claim outcomes.

“Cyber-risk must be approached holistically, not only through insurance capacity but through continuous risk management as well,” Yamasaki said via Zoom.

Yamasaki, who took the helm of the Japanese unit of the Germany-based insurer earlier this year, said the company would continue focusing on its core commercial insurance portfolio whilst gradually strengthening cyber-offerings for corporate clients.

The insurer primarily serves large commercial and industrial companies in Japan, particularly in sectors such as manufacturing and multinational operations where property and liability insurance play a key role in managing operational risks.

Property and liability lines remain the backbone of the group’s business globally.

These segments account for the majority of gross written premiums, with fire and other property damage forming a significant share and general liability another major component, according to the company’s financial disclosures.

Japan’s property and casualty insurance market is also expanding as businesses seek broader protection against operational and financial risks.
Industry forecasts point to steady growth over the coming years as corporate risk management becomes more complex.

Within this environment, HDI Global aims to stand out through technical underwriting expertise and disciplined risk selection, Yamasaki said.

The insurer is also looking to deepen partnerships with brokers and agents.

More structured strategy discussions and clearer communication are intended to strengthen collaboration and improve the development of insurance solutions for clients.

HDI Global’s international network is another advantage for Japanese companies operating overseas. The insurer operates across more than 170 countries, enabling multinational clients to arrange coordinated coverage across multiple territories.

Technology is expected to play a bigger role in underwriting and risk assessment. HDI Global is investing in data analytics and artificial intelligence tools to support faster and more consistent decision-making whilst keeping specialist expertise central to the process.

“Balanced growth and sustainable profitability come from technical excellence, disciplined underwriting, and strong partnerships,” Yamasaki said.
 
 

ANA Holdings Inc. is considering launching a new business using fixed-wing drones to survey damage in remote areas following a disaster.

The parent company of All Nippon Airways aims to use the drones, which can fly at high speeds and cover long distances, to survey disaster-struck mountainous areas and peninsulas.

It plans to sign a memorandum of understanding with a Swiss drone manufacturer for business use and to promote its new service to local governments and other businesses.

The drone model eyed for the new business has a wingspan of 1.2 meters and weighs 5.2 kilograms, small enough for a single person to carry.

Equipped with a camera, the model will be used to inspect aging infrastructure facilities such as bridges and utility towers to detect changes in their condition that might indicate possible issues.

In case of a disaster, the model can be used to survey landslides, cracks or other changes on the ground, as well as damage sustained to infrastructure.

During a test in October 2025 near Mt. Fugen in Nagasaki Prefecture, a fixed-wing drone was able to inspect an area of about 150 hectares for 30 minutes and detect fine cracks on erosion control facilities and changes in their condition, according to ANA Holdings.

When a powerful earthquake hit the Noto Peninsula in Ishikawa Prefecture in January 2024, ANA Holdings conducted a survey using a large drone. However, the company encountered challenges, such as the long time required to transport such a large product to the affected areas.

ANA Holdings is therefore turning to the small model with fixed wings, as it can be operated more flexibly. The model is more maneuverable than a helicopter and can survey wider areas than a small drone without fixed wings.

ANA Holdings also plans to launch a logistics business using a large drone with a wingspan of 7 meters as early as 2027. When a disaster strikes, the drone will be tasked with delivering food and other relief supplies to areas where access has been cut off.

Other companies are also trying to use fixed-wing drones for their businesses.

In January, Itochu Corp. announced that it will work with Pasco Corp. on the practical use of fixed-wing drones in aerial surveying. The major trading firm is considering using the drones to transport blood products and medical equipment in normal times, as well as deploying them when a disaster happens.

East Japan Railway Co. has also conducted tests using a fixed-wing drone in heavy snowfall areas to survey conditions on slopes along its tracks and analyze if an avalanche could happen.

As the market for fixed-wing drones is expanding, the government is currently working to establish a new national certification specifically for this type by the end of the year.

Currently, operators must hold a highly specialized certification for unmanned aircraft that require the use of runways. The government aims to promote fixed-wing drones by establishing a certification that is easier to acquire.
 
 

Last year saw 143 ransomware attacks on small and midsize companies in Japan, accounting for 60% of all attacks in the country for the second year in a row, according to the National Police Agency.

Officials at one company that was targeted said the attack could have caused the firm’s bankruptcy.


Data hacked

Early on the morning of Jan. 6 last year, a security official at a manufacturer of dairy products in Tokyo received an automated call that said irregularities had been detected in the company’s internal system.

Accessing the server via a computer at home, he found that some file extensions had been overwritten.

“Is this ransomware?” he thought. After instructing all employees via the in-company chat not to start their computers, he rushed to his firm’s data center.

There, he discovered that almost all their data had been encrypted. When he opened a text file on the server that had been left unencrypted, he saw that it was a note from RansomHub, a notorious ransomware group, that claimed responsibility and said the data had been “taken” to the group’s server.



Brought to a standstill


Data about the firm’s roughly 7,000 corporate customers and personal information about its employees was encrypted and a server at a separate location was also affected.

The firm was forced to suspend production and distribution. Even the backup files, which were supposed to have been impossible to overwrite, had been encrypted.

The ransomware group demanded a payment of $1 million, or about ¥150 million, to restore the data. Management decided that same day not to comply with the demand, believing the data might not be restored even if they paid. The company’s headquarters ground to a halt.

But there was one saving grace. The firm’s core system, which had a specially designed operating system, had not been attacked. The system was introduced about 40 years ago and was set to be retired in about six months.

The core system was accessed safely from a computer, suggesting it might be possible to take some orders and check stock again.

It was around 3 p.m. that the firm managed to partially resume operations. The company explained the situation to customers over the phone and received orders via phone and fax. The firm continued production with rough projections, keeping its plants online.


Early warning signs

The company was hacked through a virtual private network, or VPN, which was used to access the in-company system from outside. The company identified traces of an attack three days before, but it was unable to decrypt files in the attacked server.

It took the firm four months to completely restore operations, costing it tens of millions of yen, including for safety measures after the incident.

So far, there is no sign of secondary damage, such as the disclosure of customer information.

“The attack was beyond our expectations,” said one corporate official. “The incident made us keenly aware that we need a system that will allow us to keep operating even if it gets infected or we are attacked, which could mean a backup system that is not connected to the internet.”

“We never expected our firm would be targeted,” said a senior official. “The core system just happened to survive, but otherwise we would have gone bankrupt.”
 
 

The umbrella body for labor unions at Japanese electronics makers plans to allow member unions to accept pay scale hike offers from management in the ongoing shuntō annual wage negotiations if the proposed levels are ¥12,000 or higher per month, sources said Saturday.

The minimum acceptable level will be higher than last year's ¥10,000 or more. The hike is intended to help sustainably realize robust pay increases outpacing inflation.

The Japanese Electrical Electronic & Information Union is expected to make a decision on the matter Monday, informed sources said.

Unions at major electronics makers have demanded a monthly pay scale hike of ¥18,000.

Labor-management negotiations in the 2026 shuntō are in the final stretch toward Wednesday, when many major companies in Japan are slated to present their responses.

Starting with the 2020 shuntō, the umbrella body for electronics unions allows agreed pay hikes to vary from company to company if the levels are at or above the minimum acceptable standards set by the organization.

Agreed pay increases are highly likely to differ again this year, due to gaps among companies with regard to earnings performances and business environments.

NEC, which is enjoying rosy earnings, has already informed its labor union of a plan to fully meet the union request for a monthly pay scale hike of ¥18,000.

In the 2025 shuntō, unions at major electronics makers sought a pay scale increase of ¥17,000 per month.

In response, NEC, Hitachi Ltd. and Fujitsu Ltd. fully accepted their unions' demands. Meanwhile, Mitsubishi Electric, Toshiba and Sharp concluded their negotiations with the labor side at ¥15,000, ¥14,000 and ¥12,000, respectively.
 
 

The Central Japan Railway Co. (JR Tokai) held a groundbreaking ceremony on Wednesday for the tentatively named Yamanashi Prefecture Station, marking the start of construction for a series of planned stations between Tokyo’s Shinagawa and Nagoya Station that are set to support the future Linear Chuo Shinkansen maglev train service.

The station, to be used exclusively for the maglev line, is about 7 kilometers south of JR Kofu Station, straddling the cities of Kofu and Chuo in Yamanashi Prefecture.

 

Features of the project will include the station building and a 1.2-kilometer elevated bridge where the platforms will be located. There will be two platforms and four tracks.

The station building will be four stories tall, with ticket gates on the second floor and platforms on the fourth floor.

JR Tokai signed a construction contract with the contractor in September 2025 and has been moving forward with preparatory work since February this year. The construction period is set to last until December 2031.

Attending the groundbreaking ceremony were JR Tokai President Shunsuke Niwa, Yamanashi Gov. Kotaro Nagasaki and various local municipal leaders.

“As we proceed with construction, we want to make safety our highest priority and place great importance on cooperation with the local community,” said Niwa.
 
 

PayPay Corp, the Japanese provider of a popular digital payment app, made a major stock market debut on the U.S. Nasdaq exchange on Thursday, a move aimed at supporting its global expansion.

PayPay was valued at around $12.1 billion based on its closing price of $18.16, exceeding the initial offering price of $16 per share. The offering price was set below the initially indicated range of $17 to $20.

Although U.S. stocks fell broadly on concerns over the war raging in the Middle East, the new share opened at $19, about 19 percent above the offering price.

At a commemorative ceremony at the Nasdaq, PayPay President Ichiro Nakayama rang the bell, saying the company hopes to show that a Japanese firm "can directly access the U.S. capital markets and grow with strength."

For the listing, PayPay issued about 31 million new shares to bolster its overseas business, while an investment fund operated by SoftBank Group Corp will sell around 24 million shares. Nakayama said, "We will always remain challengers."

 

After the listing, roughly 90 percent of PayPay's shares will be owned by companies including SoftBank Corp and LY Corp, operator of the Line messaging app.

Last month, PayPay announced plans to enter the U.S. market by setting up a new firm with global credit card brand Visa Inc, aiming to build its merchant network through QR code and contactless payments in California and elsewhere.

The Japanese company launched the app in Japan in 2018 and had about 73 million users as of March.
 
 

At least 1,515 Japanese firms operate in the Middle East, where Japanese nationals have begun to evacuate following U.S.-Israeli attacks on Iran, a survey by research firm Teikoku Databank showed Friday.

Of them, 469 companies have resident offices and plants. Teikoku Databank noted that these firms may be forced to halt or reconsider their operations there.

The survey covered Japanese businesses in 13 countries in the region. It confirmed that 126 companies are operating in Iran, including importers of food and furniture products to Japan.

The number of operating Japanese firms was highest in the United Arab Emirates, at 709, followed by 473 in Israel.

By industry, 883 companies were electronics, luxury used car and other wholesalers, 291 were manufacturers and 127 were service firms.
 
 

The average retail gasoline price in Japan rose to 161.80 yen per liter as of Monday, reflecting higher crude oil prices amid the Iran war, industry ministry data showed, with the price possibly jumping to above 180 yen next week.

The average price advanced 3.30 yen from March 2, rising for the fourth straight week, after the U.S.-Israeli attacks on Iran, launched on Feb. 28, drove up crude oil prices, the Ministry of Economy, Trade and Industry said Wednesday.

The Oil Information Center, which collected the data, estimates the price could hike a further 20 yen next week as tensions in the Middle East continue, stoking fears over crude oil supplies.

The increase in the price of gasoline comes as a headache for Prime Minister Sanae Takaichi's government as it strives to tackle inflation.

Due to the end of a provisional gasoline tax in December, the price of gasoline had been moving at its lowest level in around four and a half years in recent weeks, providing relief for many businesses and car owners.

In mid-January, the price hit as low as 154.70 yen, contributing to a slowing down the country's nationwide inflation to 2.0 percent in the month, the lowest in two years.

According to the ministry, advances in the price of gasoline were recorded in all 47 prefectures as of Monday.

Diesel prices were also 3.2 yen higher than the previous week at 149.8 yen, while the price of kerosene climbed 47 yen to 2,267 yen per 18 liters, the size of a standard home storage tank.
 
 

East Japan Railway has said it will launch a trial in April of a system that uses artificial intelligence to monitor pantographs on trains running on its busy Yamanote Line in Tokyo to detect defects at an early stage.

The railway operator, known as JR East, also plans to use drones toinspect overhead wires and other infrastructure, aiming to reduce the time required to resume operations by 30% when transport service disruptions occur due to equipment problems.

Cameras to monitor pantographs, which are located on the roof of a train car and connect the carriage to overheard electrical wires, will be installed near Shimbashi, Ebisu, Mejiro and Uguisudani stations in the capital, the company said Tuesday.

The AI system will analyze the images in real time, and if damage is detected, it will notify the control room or other relevant sections. Drones will be dispatched later to inspect overhead wires and other equipment, facilitating faster restoration work.

By replacing the work traditionally done by people with AI and drones, the system is expected to shorten the time needed to identify damaged vehicles and inspect facilities.

It is the first time for JR East to use AI to detect such damage, and the company is considering introducing it to the Tokyo-Shinjuku section on its Chuo Line and to shinkansen services in the future.

In May last year, many pantographs on the Yamanote Line were damaged due to broken overhead wires, affecting about 250,000 people.

This year, JR East faced a series of large-scale transportation disruptions due to power outages on its Yamanote, Joban and Utsunomiya lines, making it an urgent task for the company to prevent a recurrence.
 
 

Retail prices of regular gasoline in Japan surpassed 160 yen per liter on average as of Monday for the first time in three months, reflecting higher crude oil prices following U.S.-Israeli attacks on Iran, the industry ministry said Wednesday.

The average price at the pump climbed 3.3 yen from a week earlier to 161.8 yen per liter, marking the fourth consecutive weekly increase.

All 47 prefectures of the country saw price rises. Yamagata logged the highest price, at 170.1 yen, and Aichi the lowest, at 155.6 yen.

Gasoline prices are expected to rise further next week as refineries have been raising wholesale prices in response to surging oil prices. The gasoline price "could top 180 yen per liter," an industry official said.

The rise in gasoline prices is likely to offset the effect of the removal of the gasoline tax surcharge of 25.1 yen per liter at the end of last year.
 
 

Tokyo stocks plunged Monday, with the Nikkei index losing over 2,800 points and marking the third-largest point drop in history, as crude oil futures surged amid growing prospects of a prolonged Middle East conflict.

The 225-issue Nikkei Stock Average ended down 2,892.12 points, or 5.20 percent, from Friday at 52,728.72. The broader Topix index finished 141.09 points, or 3.80 percent, lower at 3,575.84.

On the top-tier Prime Market, the main decliners were nonferrous metal, glass and ceramics product and machinery issues.

The U.S. dollar mostly stayed in the upper 158 yen range in Tokyo amid concerns about the impact of surging crude prices.

At 5 p.m., the dollar fetched 158.45-47 yen compared with 157.79-89 yen in New York and 157.52-55 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.1563-1565 and 183.22-26 yen against $1.1613-1623 and 183.22-32 yen in New York and $1.1614-1615 and 182.96-183.00 yen in Tokyo late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond ended up 0.025 percentage point from Friday's close at 2.185 percent as worries about inflation grew with the rise in oil prices.

Expectations for an early resolution of the conflict receded after reports that President Donald Trump has shown interest in deploying U.S. ground troops inside Iran, dealers said.

The appointment of Mojtaba Khamenei as Iran's supreme leader, announced Monday following the killing of his father, Ayatollah Ali Khamenei, also raised fears that the military conflict and the surge in crude oil prices could be prolonged, they said.

"There is a view that even if the top leader changes, Iran's religious regime is unlikely to change drastically," said Wataru Akiyama, strategist in the Investment Content Department of Nomura Securities Co.

The benchmark West Texas Intermediate crude oil futures contract temporarily surpassed $119 per barrel in New York on Sunday, the highest level since June 2022, as the Middle East conflict continues to escalate. It ended below the $100 mark on Friday.

"The market already seems to be factoring in four or five more weeks (of the conflict), or even longer, as President Trump has said," according to Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

The Nikkei stock index briefly fell by more than 4,200 points, with all sectors facing selling pressure. Still, the declines were trimmed in the afternoon following a report that finance ministers of the Group of Seven will discuss the possibility of a joint release of stockpiled oil.

The decline in heavyweight technology shares, which were surging until February, weighed on the market.
 
 

Japan's benchmark stock index rebounded sharply on Tuesday as concerns eased that the Middle East conflict could disrupt global oil supplies.

The Nikkei 225 gained 2.88 percent to close at 54,248. It rose 3.7 percent at one stage after G7 member nations indicated they are ready to release oil reserves if needed.

US President Donald Trump also said the Iran conflict will end soon.

The Nikkei index plunged 5.2 percent on Monday amid oil supply worries.

That was a fall of nearly 2,900 points, or its third-biggest drop on record.
 

 

Asian shares tumbled Wednesday, with South Korea's benchmark plunging more than 11%, while oil prices climbed even higher as the war with Iran widened.

Worries over Iran have hammered most world markets, spooking investors who fear more spikes for oil prices may grind down the global economy and sap corporate profits.

South Korea's Kospi led the regional losses as energy security concerns vanquished optimism over the boost computer chipmakers like Samsung Electronics and SK Hynix have been getting from expanding use of artificial intelligence.

The Kospi sank 11.5% to 5,127.28. Samsung's shares dropped 9.1%, while SK Hynix gave back 6.5%.

The Korea Exchange temporarily halted trading for the Kospi index, while a circuit breaker was also triggered on the tech-oriented Kosdaq after it fell by more than 8%. It later dropped 12%.

South Korea’s stock market has been one of the world’s best performers this year, but its economy depends heavily on trade and fuel imports, that are threatened with disruptions to traffic through the Strait of Hormuz, the narrow gateway to the Persian Gulf through which roughly a fifth of globally traded oil passes.

The rise in oil prices appeared to moderate after U.S. President Donald Trump announced Tuesday that he had ordered the U.S. Development Finance Corp. to provide political risk insurance and guarantees for financial security of all maritime trade.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” Trump said in a message posted by the White House on X.

The price of U.S. benchmark crude oil climbed 1.3% to $75.53 per barrel. Brent crude, the international standard, gained 1.7% to $82.74 per barrel. Its price has jumped more than 13% since the war began.

“Trump’s assurances of the U.S. underwrite shipping insurance against Middle East conflict risks and even U.S. naval escorts only mitigate, but do not eliminate, enduring upside risks to oil prices,” Mizuho Bank said in a commentary.

The increased insurance costs filtering through to shipping would ultimately cost an extra $5 to $15 a barrel.

It said that “evolving Middle East risks, entailing escalating attacks, means that the ‘war premium’ remains firmly intact.”

In Tokyo, the Nikkei 225 shed 3.61% to 54,245.54. Like South Korea and Taiwan, Japan depends heavily on imports of oil and natural gas from the Persian Gulf.

Elsewhere in Asia, the Hang Seng in Hong Kong fell 2.9% to 25,023.18 and the Shanghai Composite index shed 1.2% to 4,074.22.

In Australia, the S&P/ASX 200 declined 1.9% to 8,901.20.

Taiwan's Taiex lost 4.4% and shares in Bangkok sank 8%.

On Tuesday, the S&P 500 finished with a loss of 0.9%, at 6,816.63, after dropping as much as 2.5% on concerns over the war’s damage to the economy. The Dow Jones Industrial Average pared its loss to 0.8%, closing at 48,501.27.

The Nasdaq composite fell 1% to 22,516.69.

In the bond market, Treasury yields leaped in the morning with worries about inflation. The yield on the 10-year Treasury briefly rose above 4.10% before pulling back just below 4.06%. It was at 4.05% late Monday and just 3.97% on Friday.

Higher yields can make it more expensive for U.S. households and businesses to borrow money, affecting everything from mortgages to bond issuances. They also put downward pressure on prices for stocks and all kinds of other investments.

Some analysts say stocks could rebound if the war doesn’t last that long. But they acknowledge it could take a while for that to become clear, and Tuesday’s swings for markets showed how uncertain things are.

The more evident impact has been on the average price of a gallon of gasoline. Drivers in Europe and some Asian cities waited in line to fill their tanks with fuel.

While the U.S. does not face a shortage as a net oil exporter, prices are influenced by global market trends.

In the U.S., a gallon of regular was selling for $3.11 on average, up 11 cents, according to motor club AAA, surprising some drivers at the pump. Gasoline prices were already rising before the U.S. launched strikes on Iran as refiners were switching over to summer blends of fuel.
The war could have broader implications.

Higher inflation partly due to the war could tie the Federal Reserve’s hands and keep it from cutting interest rates. The Fed lowered rates several times last year and indicated more cuts were to come in 2026. That would help boost the economy and job market, but lower rates can also worsen inflation.

In other dealings, the dollar fell to 157.61 Japanese yen from 157.74 yen. The euro slipped to $1.1592 from $1.1612.

The price of gold rose 0.9%, while silver gained 1.5%.
 
 

Japan's unemployment rate in January rose to 2.7 percent from 2.6 percent in the previous month, climbing for the first time in five months, as more workers left their jobs to seek improved conditions, government data showed Tuesday.

The number of people with jobs edged down 0.4 percent to a seasonally adjusted 68.17 million, dropping for the first time in five months, while those without jobs rose 3.2 percent to 1.91 million, marking a second straight month of increase, the Ministry of Internal Affairs and Communications said.

Of those not in work, 450,000 were dismissed, unchanged from December, while 820,000 people left their jobs voluntarily, typically to seek better conditions, up 7.9 percent.

Those newly seeking jobs decreased 3.6 percent to 540,000, according to the ministry.

"More workers may be quitting their jobs after receiving winter bonuses and looking for positions with higher salaries," a ministry official said.

The job availability ratio edged down 0.02 point from December to 1.18, meaning there were 118 jobs available for every 100 job seekers, marking the first decline in three months, according to separate data.

By industry, new job openings plunged 13.8 percent in accommodation and restaurant services, while there were 11.6 percent fewer new job offers in the wholesale and retail sector in January compared with a year earlier, the Ministry of Health, Labor and Welfare said.

In contrast, new job openings increased 4.3 percent in the education sector, 0.8 percent in manufacturing and 0.3 percent in scientific research, professional and technical services.

A labor ministry official said that "rising prices and labor costs are accelerating moves to cut workers and improve efficiency, including by utilizing artificial intelligence."
 
 

The main store of Meitetsu Department Store, a landmark at Nagoya Station in central Japan for over 71 years, closed permanently on Saturday.

The closure is part of a redevelopment plan for the Nagoya Station area, led by the department store operator's parent company, Nagoya Railroad.

But it is uncertain when the store building will be demolished and a new building erected, as the redevelopment plan was put on hold last December after a prospective contractor decided not to bid for the project, citing difficulties securing workers. The delay is expected to pose a drag to efforts to revitalize the area surrounding the station.

The Meitetsu Department Store main store opened in December 1954 and served as the core of the commercial area near Nagoya Station. However, the store struggled with declining business, with sales falling from ¥79.3 billion ($511 million) in 2000 to ¥37.6 billion in 2024.

"Thank you very much for your long-time patronage," president Hitoshi Ishikawa said at the closing ceremony.

Following the closure, the operator will consider opening some shops on the lower floors of the building. Nagoya Railroad has said it plans to outline the direction of the redevelopment plan in fiscal 2026.
 
 

Mizuho Financial Group is planning to replace about 5,000 administrative jobs in Japan with artificial intelligence over the next 10 years, as the country’s third-largest lender tries to boost productivity.

“We are planning to enhance our earnings capabilities by shifting human resources to our focus areas by fully utilizing AI,” Mizuho said in a statement. “It is not a headcount reduction.”

Japanese companies have been expanding their use of AI to improve efficiency, and investment in the technology is a key part of Prime Minister Sanae Takaichi’s policy program.

In the banking sector, institutions are seeking to pursue AI initiatives in ways that minimize significant workforce reductions as they face labor shortages.

Mizuho has about 15,000 clerical positions at its core banking units and other group companies, and affected employees will be transferred to other roles, the bank said. The Yomiuri Shimbun reported the plans earlier.

Global banks are heavily investing in AI to improve operations ranging from product development to risk management. JPMorgan Chase & Co. spends about $2 billion annually on developing AI technology, an investment that it says also saves about the same amount each year.

The heads of Japan’s banks have been trying to ease concerns that AI will take away jobs.

“I don’t think humans will lose their value,” Mizuho Chief Executive Officer Masahiro Kihara said in October. “They can aim for more value-added work.”
 
 

The Japanese government plans to use its official development assistance to enhance economic security, a draft proposal showed Friday.

The ODA will be used to address economic security concerns, including securing energy supplies and critical minerals, according to the draft of the 2025 white paper on development cooperation.

The draft also calls for strengthening relations with members of the Association of Southeast Asian Nations to realize a free and open Indo-Pacific region.

The draft was approved at a joint meeting of the ruling Liberal Democratic Party's Foreign Affairs Division and other groups.

Foreign Minister Toshimitsu Motegi will report the draft at a cabinet meeting shortly.
 
 

Japan's fair trade commission conducted an on-site inspection of Microsoft's Japanese subsidiary on Wednesday over a suspected violation of antitrust law, a source close to the matter said.

The source, who declined to be identified, confirmed local media reports that Microsoft Japan in Tokyo is being probed over allegations it is unfairly preventing clients from using cloud platforms developed by its competitors.

"We are fully cooperating with the JFTC (Japan Fair Trade Commission) in their requests," a spokesperson for Microsoft said.

At issue is Microsoft's cloud computing server Azure.

The firm is suspected of making its software services, including "Microsoft 365" — known for apps such as Teams and Word — inaccessible on cloud servers other than Azure, local media including the Yomiuri Shimbun said.

The probe mirrors similar attempts in recent years by Japanese authorities to rein in the monopoly by global tech titans.

In August, the JFTC issued a cease-and-desist order to Google.
Google, JFTC said, was imposing binding conditions on Android smartphone manufacturers in Japan so that its online app store will be installed almost automatically.

In 2024, Amazon's Japanese subsidiary in Tokyo was similarly inspected for allegations that it is abusing its industry dominance to drive down prices.

Amazon Japan used its coveted "buy box" — a prominent spot on its website — against sellers, pressuring them into lowering prices to give it a competitive edge over rival e-commerce sites, the JFTC said.