From the launch of new products and services in Japan to facilitating leveraged trading bets, crypto exchanges and some financial firms are rushing to cash in on rising investor enthusiasm for digital assets amid hopes of easing regulations.

The recent surge underscores a higher appetite for riskier investments in Japan as inflation outpaces wage growth and overrides a wariness around crypto investments that followed serious security breaches at exchanges in 2014 and 2018.

Japanese investors' crypto assets surpassed a record 5 trillion yen ($33.16 billion) at the end of July, jumping 25% from just a month earlier. The price of bitcoin - the dominant holding - rose only 15% in yen terms over the same period.

Holdings have since dropped marginally to 4.9 trillion yen as of end-September.

Industry players are now positioning for growth to pick up pace. Regulatory changes under discussion could bring in yet more retail investors by potentially cutting tax paid on crypto gains and easing curbs on trading using borrowed money and asset securitization. 


'CONSIDERABLE OPPORTUNITY'

"There are around three times as many people with securities accounts as crypto accounts, so there's still a considerable opportunity," said Satoshi Hasuo, representative director and executive officer of exchange Coincheck .
"Next, we have to think about how we'll win these people over," Hasuo said. 

CJ Fong, Asia Pacific general manager at crypto market maker GSR, said the firm has also been engaged in more talks this year with Japanese exchanges and financial firms, mainly to provide greater liquidity across a spectrum of digital assets.

The burst of activity shows how Japan is re-establishing itself as a major crypto market as industry players capitalise on the boost the industry has had globally under U.S. President Donald Trump.

"The Trump administration has spurred the Japanese government and regulators into adopting a friendlier approach to crypto, so Japan doesn't fall behind," said Noriyuki Hirosue, CEO of exchange Bitbank.

According to a report by crypto data platform Chainalysis, Japan ranked 19th out of the top 20 nations in crypto adoption globally this year. 



NEW PRODUCTS AND ENTRANTS

Established exchanges are developing products and services in anticipation of regulatory changes that would tax digital-asset gains like those of securities and allow crypto investment through products such as ETFs and tax-free investment vehicles.

The Japan Financial Services Agency is refining rule changes, which will then be debated by parliament and, if passed, would come into effect in 2026 or 2027.

A similar overhaul of tax rules around foreign exchange trading in 2012 triggered a boom that saw trading volumes swell about tenfold in the space of 10 years, Bitbank's Hirosue said.

"I think this could hugely expand the market," he added.
In August, Coincheck announced a partnership with the crypto assets arm of online marketplace Mercari to offer a wider range of assets to Mercari's more casual customer base.

Mercari introduced simple crypto trading functions to its marketplace buyers and sellers in March 2023 and grew to 3.4 million crypto accounts by July 2025, making up over a quarter of Japan's total of 13.2 million accounts.
Its rapid growth has helped introduce crypto trading to a much larger audience, industry players say.

SBI VC Trade is considering "enhancing leveraged trading services" on the prospect of leverage trading ratios being relaxed from the current two times to about 5-10 times, representative director and president Tomohiko Kondo said.

The firm, the crypto trading arm of conglomerate SBI Holdings, also plans to offer lending services in USDC stablecoin and is exploring the launch of crypto ETF products, Kondo said.

Japan's financial regulator is considering allowing members of banking groups to launch cryptocurrency trading services, in a move to expand market access and foster competition, the Nikkei reported in October.



CHASING THE HIGHS

The crypto trading boom in Japan comes as retail investors seek higher returns and diversify away from low-yielding assets like government bonds and bank loans.

"Over 90% of my assets are in cryptocurrency. A diversified portfolio is only worthwhile when you have a big sum of money already," said Umi Soyama, a 27-year-old worker at a Tokyo-based advertising agency and a crypto investor for around two years.

"I want to take on risk now and then. If I build up enough assets I'll diversify into stocks, bonds and gold," Soyama said. 

Other investors have responded to Trump's crypto boosterism. In the month he was elected, SBI VC Trade said it saw account openings grow five times more than usual.

However, crypto assets' wild volatility poses risks to new investors.
"It can go up, go down. People have to understand this kind of movement and if they are to invest it's an alternative investment, not the main play," said Motonobu Matsuo, senior managing director of the Japan Securities Dealers Association.

And with asset prices near all-time highs, some investors are now looking to reduce their holdings.

Kou Okamoto, CFO at a Tokyo-based financial firm, has invested a small proportion of his assets in crypto since 2019. He now primarily owns bitcoin but is considering reducing his exposure to "altcoins" - those other than bitcoin.

"You can't make 100 or 200 times returns on other types of investments and easing regulations would make crypto more attractive, but altcoins are like gambling with slightly better odds than horse racing," Okamoto said. "I'm considering moving those into more medium-risk, medium-return investments."
 
 

Canon Inc. plans to release a new high-end mirrorless camera, the EOS R6 Mark III, on Nov. 21, according to the company.

Designed for a broad range of users, from novices to serious enthusiasts, the camera delivers upgraded performance in high-speed burst shooting and autofocus accuracy, Canon announced Thursday.

The resolution has increased from 24.2 million pixels in the previous model to 32.5 million pixels. It also supports high-speed continuous shooting at up to about 40 frames per second, making it ideal for capturing wildlife and sports action.

The camera is also equipped with a function that allows it to prioritize the detection of people who have been registered in advance. The camera body is priced at ¥429,000 on Canon’s online store.
 
 

Japan has resumed shipping marine products to China for the first time since Beijing banned imports in 2023 due to the disposal of processed radioactive waste water from the damaged Fukushima Daiichi power plant into the sea, the government said on Friday.

Chief Cabinet Secretary Minuru Kihara said at a press conference the government responded to a "positive" delivery of six tons of frozen shells from Japan's northern main island, Hokkaido, to China on Wednesday, according to Kyodo News November 7.

Meanwhile, Agriculture Minister Norikazu Suzuki said in a separate press conference that 600 kilograms of salted sea cucumbers would follow on Monday.

China imposed a comprehensive ban in August 2023 as a form of strong resistance to the disposal of waste into the sea, which began that month.

However, the two countries agreed that in June this year, Japanese seafood imports from China would be continued in stages.

Japanese exporters are required to register their facilities with Chinese authorities and submit radioactivity inspection certificates for their fishery products before sending them.

So far, only three facilities have been allowed to export, while registration for hundreds of other facilities is still pending.

Chinese Foreign Ministry spokesman Mao Ning said Friday at a regular press conference in Beijing, "If any risks are found, the necessary import restriction measures will soon be taken in accordance with the law."

He expressed his hope for continued international monitoring and independent water sampling by the Bamboo Curtain Country, adding Beijing would maintain strict scrutiny of Japanese seafood imports to ensure food safety for its people.

Separate bans remain in place for imports of marine products and other products from 10 out of 47 prefectures in Japan, including Fukushima, Miyagi, and Tokyo, which were imposed after the March 2011 earthquake and tsunami that triggered the nuclear disaster.

China's resumption of Japanese seafood imports comes amid efforts by its two neighboring countries to stabilize bilateral relations that are often strained due to issues related to the territory and history of war, amid rising competition and tensions over China-US trade under US President Donald Trump.

China has also completed an important step towards restarting imports of Japanese beef, which was stalled following an outbreak of mad cow disease in Japan in 2001, with Beijing completing its domestic quarantine procedures in July, according to the Japanese Government.

Kihara, the government's main spokesman, said Tokyo would continue to urge Beijing "firmly" to lift remaining restrictions on Japan's 10 prefectures and continue importing beef.
 

A robot is selling merchandise as part of a trial run at an unstaffed souvenir store at Narita Airport in Narita, Chiba Prefecture.

The trial, the first of its kind at domestic airports and commercial facilities, is being jointly conducted by Narita International Airport Corp. (NAA) with Nomura Research Institute, Ltd. (NRI), which developed the store. They are evaluating the approach as a possible solution for labor shortages in the future.

With an adorable, animal-like face, the robot is 1.2 meters tall with a length of 1.8 meters and a width of 60 centimeters. It moves on a rail to fulfill customer orders. The store, which is a glass booth measuring 7 meters wide and 2.7 meters deep, has stacks of 12 different kinds of boxed souvenirs.

The robot uses its tail, which serves as an arm with a sucker at its end, to pick up a box, place it down and bring it to the delivery window.

Pickru Store was installed on Oct. 10 near domestic boarding gates at the airport’s Terminal 3, which is used by many passengers for budget airlines.

To buy souvenirs, shoppers browse via a panel showing the contents of the boxes and their prices. Payment is accepted via credit card or by QR code. A purchase can be made in a minute and without a shop assistant. According to NAA, the store is used by an average of 20 people every day.

NRI is studying the potential of robots in providing an answer to serious labor shortages due to the decline in Japan’s working-age population. Narita Airport faces the issue of how to secure enough staff to handle the increase of arrivals and departures at its facility in the future.

The airport’s operator decided to take part in the trial run as a possible solution that makes up for labor shortages.

NRI lists the advantages of the Pickru Store compared to regular unstaffed shops and vending machines as follows: The initial investment is small; there is no risk of shoplifting; the store can accommodate souvenir boxes in various sizes; and the robot’s physicality is eye-catching to passersby.

“In this country, it is presumed that there will be a shortage of about 7 million people in the working-age population in the near future,” said Kenichiro Hiroto of NRI.

“Labor shortages will pose a serious problem to the retail industry as well. We are exploring various styles of retailing by using robots. In this trial run, we’d like to examine customers’ reactions, too.”

Pickru Store will be open at the airport until Dec. 15. NAA is planning to review the data from the trial run at the end of this year or early next year.
 
 

A Japanese Fisheries Agency panel has approved an expansion of the fiscal 2025 fishing quota for the Japanese common squid by 1,800 tons following bigger-than-expected catches.

At its meeting Wednesday, a subcommittee of the Fisheries Policy Council gave the green light to the plan to increase the quota for the year through March 2026 to 27,600 tons from 25,800 tons at present, mainly by reallocating the portion reserved for adjustment.

The increase will also cover small fishing boats, which were ordered last week to suspend operations, but they will not be allowed to resume fishing as their catches already exceed the newly approved level.

The total quota for the squid for the current year was initially set at 19,200 tons, down 60,000 tons from a year before, following poor catches in recent years.

Once the squid fishing season began, however, catches turned out unexpectedly good, and the quota was boosted by 6,600 tons in September.

Ahead of the high season, there have been calls for increasing the quota again, mainly from the northernmost prefecture of Hokkaido.
 

 

Wasteful and ineffective use of taxpayer money by the Japanese government in fiscal 2024 totaled about ¥54.081 billion in 319 projects, according to a report the Board of Audit of Japan submitted to Prime Minister Sanae Takaichi on Wednesday.

Both figures were lower than those of the preceding year.
Of the total cases for fiscal 2024, which ended in March this year, 271, involving over ¥8.6 billion, were related to law violations or improper budget execution.

While the fiscal 2023 audit of the government focused on projects linked to COVID-19, the board mainly inspected a wide range of projects, including those aimed at ensuring people's safety and related to the defense and digital fields, for fiscal 2024.

Yuhei Harada, chief of the board, said during a news conference, "With restoring fiscal soundness being a major challenge for the government, we'll continue strict and fair audits of various administrative and fiscal projects funded by taxpayer money."

The Ministry of Economy, Trade and Industry had the worst single case of taxpayer money being wasted or used ineffectively, with the amount totaling about ¥20.365 billion.

The funds for subsidies provided by the affiliated Small and Medium Enterprise Agency to the Japan Federation of Credit Guarantee Corporations to aid fundraising at small firms impacted by the March 2011 powerful earthquake and tsunami have not been utilized effectively, the board said.

The ministry was also the biggest taxpayer money waster within the government, misspending some ¥22.058 billion in total. The Health, Labor and Welfare Ministry came second, with around ¥3.752 billion, followed by the Land, Infrastructure, Transport and Tourism Ministry, with about ¥1.963 billion.

The board also said that there were 290 locations with landslide risks along expressways, calling on three expressway operators to take countermeasures.

Amid heightened cybersecurity risks, the board called for improvements to be made for 58 information systems of 12 administrative agencies that were found to lack measures against vulnerabilities.
 
 

A subcommittee of a finance ministry advisory panel Wednesday started discussions to formulate the Japanese government's budget for fiscal 2026, which starts in April next year.

It will be the first budget compiled under Prime Minister Sanae Takaichi's administration. She has pledged to pursue an aggressive yet responsible fiscal policy.

Budget requests from government ministries and agencies under former Prime Minister Shigeru Ishiba reached a record high of over 122 trillion yen, reflecting increased spending aimed at boosting wages and addressing inflation.

With expectations for even greater fiscal spending, balancing fiscal soundness with expansion will be a key challenge.

In her policy speech to parliament on Oct. 24, Takaichi said she would "strategically deploy fiscal measures" to build a "strong economy."

She pledged to achieve economic growth through public and private investment in strategic sectors while ensuring fiscal sustainability by increasing tax revenues.
 
 

 
The press got a first look at a train car to be used for the Linear Chuo Shinkansen maglev line when it was unveiled on Friday on a test line in Yamanashi Prefecture.

The M10, Central Japan Railway Co.’s (JR Tokai) new train car, is still being tested and is expected to be used when the Linear Chuo Shinkansen begins running.

One feature of the M10 is that its seats do not recline, as it is meant for passengers traveling for only a short amount of time.

Since construction for one section of the Linear Chuo Shinkansen’s track has not started, the timeline for when the M10 will be used is still unclear. However, the cars are still being built.

It is the first maglev train car to be unveiled in five years.
The maglev train will have a top speed of 500 kph and is expected to travel between Shinagawa and Nagoya stations in as fast as 40 minutes.

To achieve such speeds, the seats’ reclining function and other features were removed to make them more lightweight. The space in front of each seat has been increased, so passengers can place their luggage and other items at their feet.

The Linear Chuo Shinkansen’s speed and images such as a blue sky and various locations will be projected on the car’s ceiling as the train track goes through many tunnels and there will not be much of a view from the windows.

“The technology necessary for the maglev’s operation is mostly developed,” said the director of the maglev train’s testing center in Yamanashi Prefecture.
However, with concerns being raised about the construction of a tunnel having various environmental impacts, construction on a section of the track in Shizuoka Prefecture has not started, and there is no timeline for when it is expected to begin.

In addition, JR Tokai said Wednesday that the total cost of construction for the maglev line between Shinagawa and Nagoya stations is expected to increase by about ¥4 trillion to ¥11 trillion. Securing a large amount of funds will pose a significant challenge.
 


 

Asian shares retreated Tuesday despite the big lift in overseas markets from optimism over AI technology, as traders sold shares to lock in recent profits.

Japan's benchmark Nikkei 225 dipped 1.7% to 51,497.20 following a national holiday on Monday.

Australia's S&P/ASX 200 shed 0.9% to 8,813.70.
South Korea's Kospi dipped 2.4% to 4,121.74, reversing after a rally took it to record highs in recent days.

Hong Kong's Hang Seng erased earlier gains to fall 0.6% to 25,983.29, while the Shanghai Composite lost 0.4% to 3,960.19.

On Monday, gains for Nvidia, Amazon and other AI superstars propped up share prices. The S&P 500 rose 0.2% and pulled closer to its all-time high set last week, even though the majority of stocks in the index sank. The Dow Jones Industrial Average dropped 226 points, or 0.5%, and the Nasdaq composite climbed 0.5%.

Nvidia was the strongest force lifting the S&P 500, as it has been for much of the year so far. The chip company rose 2.2% to bring its gain for the year to date to 54.1%.

Amazon was the No. 2 force pushing the market higher. It rallied 4% after announcing a $38 billion agreement with OpenAI, which will use Amazon’s cloud computing services to run its AI workloads.

IREN, an AI cloud service provider, jumped 11.5% after Microsoft announced a $9.7 billion contract with it that will give the tech giant access to some of Nvidia’s chips.

Palantir Technologies, which came into the day with a stunning 165% gain for the year so far, rose another 3.3%. Traders pushed the AI darling higher in the final hours before the data platform company reported its latest quarterly results after trading closed for the day.

Companies across the U.S. stock market will need to hit expectations for growth in profit to justify the big gains for their stock prices since April. Criticism has been rising that the broad U.S. market, and AI stocks in particular, have become too expensive and could be inflating into a dangerous bubble similar to the 2000 dot-com bust.

For the most part, companies have been meeting the high expectations for profits. Four out of every five companies in the S&P 500 have topped analysts’ forecasts so far this reporting season, according to FactSet.

With roughly two-thirds of all S&P 500 reports in, companies in the index are on track to deliver healthy growth of nearly 11% versus a year earlier.

On the losing end of Wall Street on Monday was Kimberly-Clark, which dropped 14.6% after it said it would buy Kenvue in a deal valuing it at $48.7 billion. Kenvue, which sells Tylenol, Band-Aids and Listerine, jumped 12.3%.

A discouraging report on U.S. manufacturing said that activity shrank by more last month than economists expected. Several manufacturers told surveyors for the Institute for Supply Management that President Donald Trump’s tariffs are creating financial pain.

In other dealings early Tuesday, U.S. benchmark crude fell 21 cents to $60.84 a barrel. Brent crude, the international standard, declined 22 cents to $64.67 a barrel.

The U.S. dollar slipped to 153.64 Japanese yen from 154.21 yen. The euro cost $1.1524, inching down from $1.1519.
 
 

 
Japan has expressed strong interest in investing in the development of Indonesia’s new capital city, Ibu Kota Nusantar (IKN), particularly in its green and sustainable infrastructure. 

The project, located across parts of Penajam Paser Utara and Kutai Kartanegara regencies in East Kalimantan, continues to attract international attention as it moves into its next phases of development.

“IKN continues to offer investment opportunities focused on green and sustainable development,” said Head of the IKN Authority, Basuki Hadimuljono, during a visit to Sepaku, Penajam Paser Utara, on Monday, November 3, 2025, as quoted by antaranews.com.

The first and second phases of IKN’s construction are centered on building government offices and housing. Future development will expand into nine designated zones covering a range of economic and industrial sectors.

Basuki emphasized that industrial development within IKN will prioritize clean and green industries, in line with the sustainable development principles upheld by the IKN Authority. “The envisioned industries include agro-industry and fisheries, sectors that align with our clean and green approach,” he explained.

Among the interested investors is the Saga office of the Japan External Trade Organization (JETRO), which is exploring various opportunities for collaboration and investment in Indonesia, particularly in infrastructure and industrial zones within IKN.

Basuki welcomed JETRO’s interest, describing it as a potential starting point for concrete cooperation between Indonesia and Japan in realizing a modern, sustainable capital city. “JETRO has already reviewed the direction of IKN’s development,” he noted.

Tsuru Katsuya, CEO and Chairman of JETRO Kanzaki Industry Corp, echoed this sentiment, stating that Japan’s experience with urban density challenges makes IKN’s development particularly compelling. He added that the long-term vision behind IKN aligns well with the interests of Japanese investors.

JETRO is currently assessing key economic infrastructure, including industrial zones, transportation facilities, and other strategic assets, as part of its preparations to explore future investment opportunities in Indonesia, especially within the IKN project, Tsuru said.
 
 

The ratio of job openings to job seekers for auto mechanics and technicians in Japan eclipsed 5.00 in fiscal 2024, far greater than the overall 1.14, as the country's birthrate continues to fall.

The ratio rose by 0.10 point to 5.09 compared to the previous year, recent government data showed. It means there were 509 job openings for every 100 job seekers.

The labor shortage in the industry has raised concerns over its potential adverse impact on automobile safety, with its tough working environment and low pay also believed to be contributing factors.

According to the data from the Ministry of Health, Labor and Welfare, the ratio has been on the rise since hitting 4.50 in fiscal 2020, when it began taking records.

The number of automotive service businesses that closed, were disbanded or went bankrupt climbed to a record high of 455 in fiscal 2024 due to a chronic labor shortage, with some companies forced to delay deliveries or limit the number of units on order, according to Teikoku Databank Ltd.

To combat the shortage, dealership NTP Nagoya Toyopet Corp. has implemented a system that pays up to 100,000 yen ($650) to employees who successfully introduce peers who are recruited. It has employed nine technicians since the practice was set up in fiscal 2022.

Meanwhile, Nal Net Communications, which undertakes maintenance outsourcing for corporate leased vehicles, is supporting digitalization efforts at its partner repair shops to help them operate efficiently with less staff.

The data comes after some Toyota dealerships in 2021 were found to have conducted fraudulent vehicle inspections due to understaffing, with the auto giant vowing to reduce the workload.

But the number of people who applied for a license as a mechanic fell to a record low 35,504 in fiscal 2024, plunging 51.1 percent since its peak in fiscal 2004, according to the Japan Automobile Service Promotion Association.
 
 

Kansai Electric Power will start a survey early this month to assess whether it can build a new nuclear reactor in or near its Mihama nuclear power plant in Fukui Prefecture, sources said Monday.

The survey will mark the first concrete move toward nuclear reactor construction in Japan since the March 2011 meltdowns at Tokyo Electric Power Company Holdings' Fukushima No. 1 plant.

Kansai Electric will announce soon when the survey will begin.
In July this year, the company announced plans to conduct a survey needed to build what the industry calls an innovative light-water reactor, seen as safer than conventional reactors.

The town of Mihama, Fukui Prefecture, which hosts the Kansai Electric plant, accepted the start of such a survey in August.

The survey will be conducted in two stages. The company will collect rock samples through drilling and examine geological conditions in the first stage. In the second stage, the company will excavate tunnels to check the properties of rocks constituting the ground. The survey is expected to continue until around 2030.

Japan needs to secure stable power sources as electricity demand is expected to increase mainly due to the spreading use of artificial intelligence systems.

Kansai Electric, which has already restarted all of its seven operable nuclear reactors, will move toward the construction of a new reactor given that it will take about 20 years from the survey to the start of operations.

The company will not make a decision on the construction based on the results of the survey alone, President Nozomu Mori has said, adding that it will take into account profitability and the Nuclear Regulation Authority's regulatory policy.

It would also be essential for the central government and the nuclear plant operator to provide careful explanations to foster understanding of local residents and resolve difficult problems in the country's nuclear power policy, such as the selection of a final disposal site for high-level radioactive waste.
 
 

Struggling Japanese carmaker Nissan said it expected to suffer an operating loss of 275 billion in its fiscal year that ends in March as it faces further economic headwinds.

It also said it expected an operating loss of 30 billion yen for the first six months of the fiscal year, which runs through September.

Nissan reported a net loss of 671 billion yen for the financial year to March 2025, and launched an effort cut 20,000 jobs, some 15 percent of its workforce.

The first-half operating loss of 30 billion yen is better than the automaker had been forecasting. Nissan attributed it to one-time benefits including lower costs to emission regulations. It said it had also deferred some project costs to the second half of the year.

"While our first-half results reflect temporary benefits and payback from cost-saving initiatives, we anticipate ongoing challenging competitive environment in the second half, supply chain risks and the seasonality of business," said Chief Financial Officer Jeremie Papin.

The expected worsening of its performance in the second half of its fiscal year reflected "anticipated challenges in the second half due to supply chain risks, foreign exchange volatility, tariffs, and other external factors," the automaker said in a statement.

It said it now expected sales of 11.7 trillion yen in 2025-2026, down from its initial estimate in May of 12.5 trillion yen.

Nissan has faced numerous speed bumps in recent years -- including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box.

A merger with Japanese rival Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary.

Of Japan's major automakers, Nissan was seen by analysts as likely to be the most severely hit by U.S. President Donald Trump's tariffs on imported vehicles.
 
 

Income declared by companies in Japan that closed their books in fiscal 2024, which ended in March, grew 4.1 pct from the previous year to 102,338.1 billion yen, hitting a record high for the fourth year in a row, the National Tax Agency said Thursday.

Construction companies’ income showed a large increase, while manufacturers and transportation firms saw their income decline.

Total declared tax rose 7.6 pct to a record 18,713.9 billion yen.
Of the overall 3.22 million declarations, 36.5 pct came from profitable companies, up 0.5 percentage point from the previous year.

Tax withheld mainly from salaries and dividend income in the year that ended last June dropped 4.6 pct from the previous year to 20,344.5 billion yen.
 
 

Practicality took center stage at the Tokyo auto show, where many Japanese automakers showcased their latest electric vehicles set for release in the coming years as they race to catch up with overseas rivals and make environmentally friendly options more accessible to domestic consumers.

A record-high 500-plus companies and organizations are participating in this year's Japan Mobility Show, which opened to the media on Wednesday for a two-day preview, encouraging visitors to envision the future of transportation. The event will be open to the public through Nov 9.

Toyota Motor Corp unveiled an orange coupe concept version of its ultra-luxury Century at the event, positioning the model as a standalone brand alongside Lexus and its GR sports cars.

"I believe the Century brand was born out of Japanese pride," Toyota Chairman Akio Toyoda said. "The phoenix, the Century emblem, only appears in times of peace. I believe the brand is built on our hope for world peace and the challenge of forging the next 100 years."

The world's largest automaker by volume also showcased the next generation Corolla Concept, set to be available in multiple versions from EVs to hybrids, while the Lexus brand unveiled its new six-wheel vehicle.

"Everyone has a love for the earth and wants to ride a cool car. Be it a battery EV, hybrid, or engine, we want to create cars that people will want to ride," said Toyota President and CEO Koji Sato.

Toyota recently announced it will jointly develop cathode materials for all-solid-state batteries with Sumitomo Metal Mining Co., aiming to launch electric vehicles powered by the next-generation batteries between 2027 and 2028.

 

It also reported on Monday a record high in global sales for the first half of the year, driven by robust demand for hybrids in North America and China, despite fierce competition in China, where the electric SUV bZ3X was introduced.

Honda Motor Co. showcased its Super-One Prototype, a mini EV set to launch first in Japan in 2026 before expanding to Britain and other Asian markets.

The vehicle comes with a "Boost Mode," which enables the driver to accelerate rapidly and smoothly, alongside a built-in sound system that simulates an engine's sound.

"We are working on developing EV and hybrid vehicles to realize a carbon neutral world by 2050," said Honda President Toshihiro Mibe.

The automaker also displayed a "sustainable rocket" used in a test launch in Hokkaido in June. Measuring 6.3 meters long and weighing 900 kilograms when empty, the reusable rocket uses renewable fuel.

"Honda is now challenging itself in space... The test was concluded successfully and according to plan from launch to landing, with stance and speed perfectly controlled," Mibe said. "It was thanks to the technology we have garnered from our development of autonomous driving and our aircraft."

 

At Nissan Motor Co's booth, visitors can see the new Elgrand minivan, a staple in Japan for nearly 30 years, which will feature the company's third-generation e-Power technology and go on sale in fiscal 2026.

"It offers the highest levels of hospitality, warmth, serenity, and refinement, embodying the spirit of omotenashi," said Nissan CEO Ivan Espinosa, referring to the Japanese concept of wholehearted hospitality.

Nissan also showcased the new Leaf B7 released in Japan on Oct 17. The third-generation model of its flagship EV can travel 702 kilometers on a single charge.

The struggling automaker, which logged a 115.76 billion yen net loss in the April-June quarter, has been undergoing a restructuring overhaul to restore profitability.

"Everyone at Nissan is committed to embracing change and taking bold, innovative approaches, united by a determination to redefine what's possible, reshape our legacy and transform mobility," Espinosa said. "Together, we are forging a path to a more sustainable and inclusive world."

Chinese EV giant BYD Co will exhibit a prototype of its electric vehicle featuring its newest blade batteries, a type of lithium-iron-phosphate battery known for being safer and longer lasting, while South Korean automaker Hyundai Motor Co is taking part in the mobility show for the first time.

Japanese automakers are pushing toward EVs even though EVs made up just around 1.6 percent of new car sales in Japan in 2024, according to data from the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association, with around 40 percent of those being imported vehicles.

Although the global adoption of EVs has slowed down overall, some domestic automakers have targeted customers looking to replace their current vehicles, especially minicars, which account for around 40 percent of all domestic car purchases in Japan.

Alongside major companies unveiling world premiere vehicles, the Tokyo auto show will feature the "Tokyo Future Tour 2035," an area divided into five zones where visitors can experience what the world may look like 10 years from now, across land, sky and sea, including flying cars.
 
 

Long associated with American ruggedness, pickup trucks such as Ford's top-selling F-150 have now become a symbol of international trade talks, showing how far countries such as Japan will go to win over U.S. President Donald Trump.

When Trump met Japan's new prime minister and first female premier, Sanae Takaichi, in Tokyo on Tuesday, an F-150 was parked prominently outside the Akasaka Palace venue.

Burly U.S. pickup trucks are a rare sight in the Japanese capital, where the streets are narrow and turns can be painfully tight.

But the placement of the F-150,  which is not typically available for sale in Japan, sent a clear message about Tokyo's willingness to buy more cars from its ally, an issue that has been a sore point for Trump for decades.

Last week Reuters reported that Takaichi's government was working on a package to buy F-150 trucks, an idea originally floated by Trump, as well as soybeans and gas.

"Well, that's great. She has good taste," Trump told reporters on Air Force One, when asked about the report. "That’s a hot truck."

In August, Trump said Japan was ready to purchase the "very beautiful" F-150.

It was not clear how many F-150s Japan planned to buy.
Japanese government sources have told Reuters the trucks would probably end up being used as snow plows, given their size.

Japan and Europe, Trump has often complained, refuse to accept U.S. cars even as Japanese and European automakers sell millions of their vehicles each year in the United States.

But the reluctance to buy American has little to do with trade barriers. Both in Tokyo and London, many drivers see Detroit cars as simply too big and too costly to run.

The F-150 won't be the first American car brought in to Japan to help ease trade friction. Three decades ago, Toyota responded to U.S. pressure by selling a mid-sized General Motors car under its own brand in Japan.

The Toyota Cavalier was introduced with much fanfare, sold poorly and quietly faded after a few years, said John Shook, a former Toyota manager and an auto industry veteran in both Japan and the United States.

Any attempt to sell the F-150 would likely go the same way, he said.
"Don't expect to see the F-150s roaming the streets of Tokyo or hauling crops from the countryside. They are too big, too expensive, too gas-guzzling and simply a bad fit all around. Not to mention the steering wheel is on the wrong side."

A third of the 3.7 million new cars sold in Japan last year were mini or kei cars, tiny vehicles that are not produced by American automakers.

Foreign cars accounted for 6% of new car sales overall, with European brands among some of the top sellers, industry data showed, while Ford itself pulled out of Japan almost a decade ago.

Separately Trump said Toyota would open auto plants in the United States to the tune of $10 billion.

A Toyota spokesperson was not immediately available to comment on Trump's remarks.
 
 

Japan's leisure-related market expanded 5.6 pct from the previous year to 75,203 billion yen in 2024, the Japan Productivity Center, a private think tank, said Tuesday.

The latest figure surpassed the pre-pandemic level of 72,307 billion yen recorded in 2019 thanks to the economy's reopening and higher admission fees at some tourist facilities.

Games and other entertainment services rose 5.3 pct to 50,531 billion yen, while the sightseeing and outdoor amusement sector climbed 9.9 pct to 12,416 billion yen. The sports sector grew 1.6 pct, while hobbies and creation services increased 3.8 pct.

"Since the pandemic, leisure activities have been going digital," an official at the Japan Productivity Center said, citing the spread of video-streaming services and online games.

"Experience-based activities, such as going to concerts and sports events, add value to leisure," the official said.
 
 

 
Food prices continue to rise, driven primarily by high raw material costs, as well as increasing logistics and labor costs, leading to predictions of repeated further price hikes going forward.

Food prices, initially pushed up due to changing international conditions, are continuing to rise because of growing domestic operational costs.



Red ink dilemma

“It’s a rush of price hikes. Everything is going up in price. There’s nothing I can do but lament it,” said a 79-year-old housewife as she finished her shopping at a Sanyo supermarket in Adachi Ward, Tokyo, on Thursday. She let out a sigh while holding her receipt.

Since September, the store has been continuously raising the prices of bottled beverages, chocolate snacks and other items.

The supermarket has implemented measures to prevent customer attrition, such as bringing in low-priced brand products. Many items, however, are continuing to get more expensive.

“If we don’t raise prices, we will end up in the red,” admitted Yoshikuni Abe, a director of the company that operates the store.

According to the nationwide consumer price index for September released by the Internal Affairs and Communications Ministry on Friday, the core index, excluding volatile food prices, rose 2.9% from the same month a year earlier.

Food, excluding perishable items, saw a particularly high increase of 7.6%.
Rice prices rose 49.2%, falling 2.5% from their peak in June but remaining roughly double the 2020 level. Significant price increases were also seen for eggs, up 15.2%; coffee beans, up 64.1%; and chocolate, up 50.9%.



Shifting reasons

According to Teikoku Databank Ltd., the number of food and beverage items undergoing price revisions in 2025 is projected to reach 20,381 items, 60% increase from last year.

However, the causes of the price increases are changing.

A food manufacturer said that international factors were the main reasons for the price increase until the first half of 2024. These factors included the surge in crude oil and wheat prices triggered by Russia’s aggression against Ukraine and the rapid depreciation of the yen.

Since the beginning of this year, however, the majority of companies have cited domestic factors such as rising logistics costs and labor expenses, in addition to higher raw material costs, as their reasons for raising prices.

Households are strengthening their penny-pinching mindset. According to the August household survey, households with two or more members spent an average of ¥102,443 on food per month.

Looking at nominal values for food expenditures, based on unadjusted amounts, the figure rose 5.9% year-on-year. However, when adjusted for price fluctuations, the figure, on a real basis, decreased by 1.2%.

This indicates that consumers are responding to the price hikes by reducing the amounts of food they purchase or switching to cheaper products.

Yoshiki Shinke of the Dai-ichi Life Research Institute Inc. suggested that price increases will likely continue, saying, “With food manufacturers successively raising prices, adjusting prices now will not draw much attention and won’t significantly impact market share.”
 
 

 

The world's first stablecoin pegged to the yen launched in Japan on Monday, a small but significant move in a country where many consumers still prefer to use traditional payment means like cash and credit cards.

JPYC, a Japanese startup, began issuing the stablecoins - also called JPYC - which are fully convertible to the yen and backed by domestic savings and Japanese government bonds (JGBs).

The company aims to issue 10 trillion yen ($66 billion) worth of JPYC over three years and have the digital assets used widely overseas. It does not initially plan to charge transaction fees to encourage its usage, and instead aims to earn money from interest on holdings of JGBs.

"We hope to spur innovation by giving startups access to low transaction and settlement fees," CEO Noritaka Okabe told a press briefing.

"Increasing global interoperability would benefit us too, so we're open to capital tie-ups," he added.

Blockchain-based stablecoins are typically pegged to a fiat currency and offer faster and cheaper transactions.

With strong backing from U.S. President Donald Trump, stablecoins pegged to the U.S. dollar have surged and now account for over 99% of global stablecoin supply, according to the Bank for International Settlements.

Interest in stablecoins is also gaining momentum globally, and Japan's three megabanks will jointly issue stablecoins, the Nikkei daily reported this month.

Tomoyuki Shimoda, a former Bank of Japan executive who is currently an academic at Japan's Rikkyo University, said yen stablecoins are not going to have the same momentum as those backed by the U.S. dollar - the world's reserve currency used across the globe.

"There's a lot of uncertainty on whether yen stablecoins will become widespread in Japan," he said. "If megabanks join the market, the pace could accelerate. But it could still take at least two to three years."

Policymakers have expressed concern that stablecoins could facilitate the movement of funds outside regulated banking systems and potentially undermine the role of commercial banks in global payment flows.

"Stablecoins might emerge as a key player in the global payment system, partially replacing the role of bank deposits," BOJ Deputy Governor Ryozo Himino said in a speech last week, urging global regulators to adapt.

Elsewhere in Asia, South Korea has pledged to allow companies to introduce won-based stablecoins and China, too, is considering allowing usage of yuan-backed stablecoins.
 

Compact digital cameras are getting a surprise boost in popularity after having been eclipsed by smartphones for some time.

The number of compact digital cameras shipped into the domestic market in 2024 slightly increased, the first rise in seven years.

In addition to their high degree of user-friendliness, aspects of compact digital cameras, such as how easily inventive pictures can be taken for posting on social media, are being seen in a new light.


Expanding sales space

BicCamera Inc.’s Yurakucho Store in Chiyoda Ward, Tokyo, expanded a compact digital camera sales corner in July. Currently, about 20 compact digital camera models are on the store’s shelves with the prices of most in the ¥10,000 to ¥30,000 range.

In the corner, there is a display comparing image quality of photos taken by smartphones and compact digital cameras.

A store employee said the main purchasers of the cameras are women in their 20s and 30s. One customer, a 34-year-old female company employee, said that with a compact digital camera, “I can take charming photos that are emotionally resonant.”

Since around 2024, the store has received a remarkable number of inquiries about such cameras.

A store representative said, “Their reasonable prices and unique aspects of the photos, such as textured image quality, have earned praise for the products. Momentum [in sales of compact digital cameras] is rising and we expect the popularity will continue for the time being.”

According to the Camera & Imaging Products Association, the number of compact digital cameras shipped to the domestic market has gradually fallen from its peak of 9.92 million units in 2007. In 2023, the number was 392,000, declining to one-twenty-fifth of the peak.

Casio Computer Co. withdrew from the digital camera manufacturing business in 2018, and Olympus Corp. sold its imaging business units, including digital camera manufacturing, in 2021.

Compact digital cameras later began attracting attention mainly among young people wowed by social media posts.

In 2024, the number of domestic shipments increased to 439,000, up by 47,000. This was the first rise in seven years.

While the latest smartphone models can take high-resolution photos with automatic image-processing functions using AI, compact digital cameras allow people to enjoy taking photos similarly textured to those taken with film cameras without using photo editing.


Shooting video in 4K

Digital camera makers regard the current situation as a business opportunity.
In April, Canon Inc. released a new compact digital camera model for the first time in six years. The new model can shoot video in 4K resolution.

In late October, Canon will release an upgraded camera model equipped with a lens capable of an optical zoom up to 12X. This is their first release of such a model in nine years.

Manabu Kato, an executive officer of Canon, said, “Because of rising demand among young people and for shooting video in general, the compact digital camera market is highly active.”

He also said the products are being wait-listed, as supply has not caught up with demand. “We want to increase production volume and supply volume,” he added.

Fujifilm Corp., whose flagship business was in photographic film, released a new compact digital camera model in June. Users can take photos similar to those shot with film cameras.

A young Fujifilm employee who likes using film cameras proposed the new model’s creation. Users of the model can take vertical photos by holding the camera sideways, making them suitable for mainstream social media posts.

The company sees people new to digital cameras as their target consumers. A company official said, “This is the epitome of the joy of photography.”
Sony Corp. released a new top-of-the-line compact digital camera in August for the first time in 10 years. The model was also designed for use by professionals.

The retail price is around ¥660,000. The functions to control image quality and autofocus are improved from previous models.

Production of the previous model has already ended. A Sony official said, “There were calls from users hoping for a successor model to be released.”
 
 

This year's first shipment of Beaujolais Nouveau wine arrived in Japan from France on Wednesday, ahead of its release on Nov 20.

Despite rising prices in Japan and elsewhere, the suggested retail price per 750-milliliter bottle will be set at 3,256 yen, same as last year's, according to Suntory Holdings Ltd, which imports and distributes the French wine from the region of Beaujolais.

"It features a sweet and rich taste, as this has been a good year blessed with sunshine," a Suntory official said.

The company plans to import a total of about 335,000 liters of the wine, down about 2 percent from the previous year. To cultivate a wider customer base, Suntory eyes reinforcing sales of 375-milliliter bottles, in addition to the popular 750-milliliter type.

"The release is an annual celebration. Beaujolais Nouveau plays an important role in spreading wine culture," said Keiko Yoshio, who is in charge of wine business at Suntory, after a shipment of wine arrived at Tokyo's Haneda airport.

Beaujolais Nouveau is released on the third Thursday of November every year.

Another shipment arrived at Kansai International Airport in Osaka Prefecture on Wednesday morning, and further shipments are expected to reach across the country later.
 

 

Japan logged a customs-cleared trade deficit of ¥1,223.8 billion in April-September, the Finance Ministry said in a preliminary report Wednesday.

Exports in the first half of fiscal 2025 rose 0.2 pct year on year to ¥53,653.3 billion . While exports of semiconductors and other electronic parts gained 4.2 pct, those of automobiles shrank 6.7 pct.

Especially, vehicle exports to the United States slumped 22.7 pct due to high tariffs imposed by U.S. President Donald Trump’s administration.

Imports fell 3.2 pct to ¥54,877.1 billion , with crude oil and coal imports dropping 15.7 pct and 31.6 pct, respectively.

In September alone, Japan posted a trade deficit of ¥234.6 billion , marking the third consecutive month of red ink.
 
 

 

Japan is one of the last bastions of video game arcade culture, but these are tumultuous times for the industry. It’s not just little local arcades that have been closing their doors, as even multi-story, once-landmark game centers in major urban centers have begun fading away, and the next example will be occurring soon in Tokyo.

Forty years ago, arcade chain Adores opened a branch on Sunshine 60 Street, the main street that leads from Ikebukuro Station to the 60-floor Sunshine 60 entertainment complex and office tower.

With Ikebukuro being a part of Tokyo where the crowds tend to skew younger than more heavily bar and club-concentrated districts, Adores Sunshine was one of a handful of large-scale arcades that thrived in the area during the industry’s heyday of the ’80s, ’90s, and early 2000s.

But after four decades, time is running our for the three-floor arcade. This week, Adores announced that Adores Sunshine will be permanently closing in January.

The statement cites “various circumstances,” a standard vague term commonly used by Japanese businesses, as the reason for the closure, but the lack of specific reason such as the lease ending or the building being scheduled for demolition or extensive renovations would seem to imply that the arcade is no longer profitable enough to justify continuing operating.


“Our entire staff is filled with appreciation for all of our customers who visited our arcade and spent happy times here over these many years,” says the statement from Adores Sunshine. 

“We look forward to the day when we will be able to see you again! Thank you so much for these 20 years.”

Despite the comment about seeing fans again, Adores has given no indication that they intend to reopen in a new location near the current Adores Sunshine, and the statement on Adores Sunshine’s website about its impending closing instead mentions two other branches in the chain, Adores Shibuya, also in Tokyo and about 30 minutes south of Ikebukuro, and Adores Wako, around the same distance northwest of Ikebukuro in the city of Wako, Saitama Prefecture.

As mentioned above, this is a tough time for video game arcades, and Ikebukuro has also lost two other famous ones in recent years.

Home consoles and PCs now have hardware as powerful as any arcade machines, and at-home online play provides a larger pool of other gamers to play with and against than in-person co-op or versus-play arcade cabinets.

Smartphone selfies and social media have replaced sticker picture booths as the go-to way for social teens and twentysomethings to take and share photos.

Crane games/UFO catchers remain popular, but attract a different crowd than conventional gamers, often necessitating rebranding and rethinking promotions and location choices.

Even claw machines face a potential threat as gacha/capsule toy machines become increasingly popular, offering a bit of exciting uncertainty from their randomized nature while also ensuring that you never walk away empty-handed.

Still, it’s always sad to see an arcade close down, whether you’re a veteran who remembers what they were like or a younger gamer who’s never had a chance to experience a proper Japanese game center.

Adores Sunshine’s last day is slated for January 18, so you’ll want to stop on by before then, and while you’re in the neighborhood consider paying a visit and dropping a few coins at one of Tokyo’s best retro arcades that’s still hanging on.


Location

Adores Sunshine / アドアーズサンシャイン店
Address: Toshima-ku, Higashi Ikebukuro 1-14-1
東京都豊島区東池袋1-14-4
Open 10 a.m.-11:45 p.m.
Website

 
 

The average price of rice sold at some 1,000 supermarkets across Japan in the week through Sunday dropped ¥63 from the previous week to ¥4,142 per 5 kilograms, the agriculture ministry has said.

The average was down for the fourth straight week, but it remained above ¥4,000 for the sixth week in a row.

Ahead of the release of the latest average prices on Friday, agriculture minister Shinjiro Koizumi told a news conference, "We're concerned that persistently high prices may lead consumers to increasingly turn away from rice."

The average price was pushed down by a higher sales share of blended rice, including government-stockpiled rice, which rose 4 percentage points from the previous week to 29%.

The average price of blended rice was ¥3,419 in the week to Sunday, down ¥171 from the previous week.

The sales share of brand rice, such as newly harvested rice, fell from 75% to 71%.

But since newly harvested rice was traded at high prices, the average price of brand rice climbed ¥29 to ¥4,440, up for the sixth straight week.

A separate survey of about 1,200 supermarkets showed that the average price went down ¥72 to ¥3,450. Meanwhile, a survey of about 6,000 drugstores and other retail shops found that the average price was ¥135 higher at ¥4,210.
 

 

 
Honda Motor Co. announced Thursday that it will sequentially release four new motorcycle models starting in November, including the new 110cc displacement Super Cub series motorcycle made to be compatible with a new moped license.

Their maximum output is limited to 4 kilowatts to comply with the new license category.

The Dio model will launch on Nov. 20, while the three Cub series models will launch on Dec. 11. Prices range from ¥239,800 to ¥401,5000.

Since April, the moped license, which previously only allowed operation of motorcycles under 50cc, permits the operation of motorcycles up to 125cc as long as their output is less than or equal to 4 kilowatts.

Stricter emissions regulations are to begin in November, and these four models will be the first domestic motorcycles to comply with the new category.

Major manufacturers plan to discontinue production of motorcycles under 50cc, citing the cost of meeting emissions regulations as unfeasible.
 
 

Many Japanese households remain underprepared for disasters, with emergency toilets in short supply particularly, a survey released by the Cabinet Office on Friday showed.

In the survey, respondents were asked to select multiple items that they keep in stock for at least three days to prepare for disasters.

The most common item was drinking water, with 69.8 pct of respondents reporting supplies of at least 3 liters per person per day.

Only 27.5 pct claimed to have portable or emergency toilets. The number of emergency toilets were flagged as insufficient after a 7.6-magnitude earthquake struck the Noto Peninsula in central Japan in January last year.

The figure for food supplies, including canned foods and retort-pouched cooked rice, stood at 59.7 pct. Some 38.7 pct reported supplies of hygiene products such as antiseptic wipes and dry shampoo.
 
 

Japanese businesses showed off their food products at an event in Sao Paulo on Monday as demand for authentic washoku Japanese cuisine is growing in Brazil.
 
OK Corporation Co., a company based in Yaizu, Shizuoka Prefecture, known for its tuna fishing port, will start selling the fish in Brazil this month that the company imports from Japan by freezing it in minus 60 C to inoxidize it.
 
There is a business opportunity, as tuna prices are high because of short supply, OK Corporation head Kenji Ogawa said at the event hosted by the Japan External Trade Organization.
 
Tradbras Importacao E Exportacao Ltda., a Brazilian unit of Japanese food manufacturer Kikkoman Corp., showed off rice grown in Niigata Prefecture.
 
Brazilians learned about Japanese foods’ high quality through trips to Japan, Tradbras President Masahiro Miura said.
 
The company started importing Niigata-grown rice earlier this year. It aims to sell the rice to retailers in addition to restaurants.
 
Brazil imports few Japanese fishery products, which occupy about 20% of Japanese food exports, Tetsuya Inoue, director general of JETRO’s Sao Paulo office, said, noting a large market opportunity for them.
 

New challenges will test Pokemon trainers' reactions in their virtual beast battles, as the near-30-year-old saga's latest installment hits Nintendo consoles on Thursday.

"Pokemon Legends: Z-A" will for the first time play out its matchups in real time, rather than the turn-by-turn play of previous titles going back to 1996.
Set in a vast city inspired by Paris, with landmarks recalling the Eiffel Tower or Arc de Triomphe, players will have to time their attacks or dodge incoming blows as their stable of fantasy creatures does battle in the arena.

The breath of fresh air is likely to be welcomed by fans and critics, who have complained of a lack of new ideas in Pokemon releases of recent years.
"Legends: Z-A" has been developed by Japanese studio Game Freak, the outfit that first brought the world of Pokemon to life.

Published by console giant Nintendo and The Pokemon Company, the new title is part of the "Legends" spin-off series that kicked off with "Arceus" in 2022.

Players can dive into "Legends: Z-A" on both the original Switch console and its Switch 2 successor.

Gameplay unfolds around the city setting in a familiar competition format, with players scaling the ladder towards creature-training glory.

Almost 490 million copies of Pokemon games for console and mobile devices have been sold in the series' near-three-decade history, according to figures from The Pokemon Company.

Originally inspired by Japan's summer tradition of insect gathering, the games centre on capturing and training "pocket monsters" resembling creatures from mice to dragons.

The beasts' often-cute appearance belies their fearsome powers, which players can deploy in battles against other trainers.

Characters from Pokemon games have been spun off into films, animated series and a plethora of merchandise.

The franchise racked up $12 billion in licensing revenue in 2024, according to specialist publication License Global -- or more than toy giant Mattel.
 

 

Tokyo’s financial markets are bracing for more uncertainty in the domestic political landscape following Komeito’s announcement that it had decided to end its 26-year coalition with the Liberal Democratic Party.

Tokyo markets were shaken on Friday, marked by an appreciating yen and sharp decline in Nikkei average futures.

The markets, shifting abruptly from recent highs and overheating, are on edge, suggesting the volatile situation is likely to continue into this week following the three-day weekend.

Uncertainty regarding the political landscape was the main factor suppressing the market on Friday.

Concerns about the future of the LDP-Komeito coalition grew when a meeting between the parties’ leaders was held Friday afternoon, causing the Nikkei-225 Stock Average to temporarily fall by more than 600 points.

When the market closed, it was 491.64 points lower than the previous day at 48,088.80 points. After Komeito announced its withdrawal in the evening, Nikkei futures on the Osaka Exchange fell to the mid-47,000 range.

The Nikkei average had previously surged by more than 2,800 points before the LDP presidential election, driven by anticipation for fiscal expansionary policies from now LDP President Sanae Takaichi.

Dubbed the “Takaichi Trade,” the index reversed course on Friday as selling spread across a broad range of stocks, driven by a reaction to and renewed concerns over the political situation.

Nearly 90% of the stocks listed on the Tokyo Stock Exchange Prime Market fell, resulting in a sweeping sell-off.

“The market did not anticipate Komeito ending the coalition,” said Naoki Fujiwara, a strategist at Shinkin Asset Management Co. “It was a surprise.”

Kohei Onishi of Mitsubishi UFJ Morgan Stanley Securities Co. referred to the possibility of a “black swan,” which refers to an unpredictable event.

“If the opposition parties form a grand coalition and Takaichi does not become prime minister, that would be a ‘black swan’ scenario,” Onishi said. He added that the market might become more volatile this week.

Political concerns also extended to interest rates and the yen exchange rate.
In the Tokyo bond market on Friday afternoon, the yield on the benchmark newly issued 10-year government bond rose to 1.7%, up 0.01 percentage points from the previous day’s closing value, amid falling bond prices. This marked the highest level in about 17 years.

The yen exchange rate in the Tokyo foreign exchange market also accelerated its buying momentum as news of Komeito’s withdrawal from the coalition spread, triggering widespread skepticism about the feasibility of the expansionary fiscal policies advocated by Takaichi.

The yen temporarily appreciated to ¥152.38 per dollar.

However, the market remained volatile and people began selling the yen and repurchasing the dollar as a result of speculation that it will be easier for the Democratic Party and the LDP to work together.
 
 

Having wrapped up recruitment activities and orientation for upcoming university graduates who will join the workforce next spring, many Japanese companies are now focusing on ensuring their young hires do not quit within a few years, a growing trend that has become a corporate headache.

Some firms are utilizing apps to track the emotional state of new employees, while others are allowing hires to apply for specific locations or departments instead of the long-standing practice of assignments being determined by companies.

According to the Ministry of Health, Labor and Welfare, 34.9 percent of university graduates who entered the workforce in spring 2021 left their jobs within three years, up 2.6 percentage points from the previous year.

In a multiple-choice survey on why young hires quit so soon, conducted online by Staff Service Holdings Co, the most common reason cited was "poor relationships with bosses or colleagues" at 26.3 percent, followed by "the company culture was not the right fit" at 26.1 percent.

Responses were collected in June from over 700 people aged between 18 and 25 who quit their full-time jobs within three years of being hired as fresh graduates.

Among measures to combat the high turnover is the Geppo app developed by Recruit Co. Electric parts and material manufacturer Nitto Denko Corp has been using it since 2019 for employees up to their third year on the job.

The app asks employees to list their well-being across five levels in three categories every month. The human resources department is notified of the results, which are quantified and prompt one-on-one meetings if the numbers deteriorate.

A Nitto Denko human resources official said the app helped facilitate honest conversations between the company and its workers, resulting in a significant reduction in the resignation rate of young employees.

Among major insurers, Sompo Japan Insurance Inc introduced a system that allows graduates to apply for their desired department upon receiving a job offer, while Dai-ichi Life Insurance Co launched an initiative enabling new hires to be posted overseas within five years of commencing employment if they wish to work abroad.
 
 

Tokyo stocks ended sharply lower Tuesday, with the Nikkei index briefly sinking over 3 percent, as selling was spurred amid political uncertainty in Japan after the junior coalition partner of the ruling Liberal Democratic Party decided late last week to end their alliance.

The 225-issue Nikkei Stock Average ended down 1,241.48 points, or 2.58 percent, from Friday at 46,847.32. The broader Topix index finished 63.60 points, or 1.99 percent, lower at 3,133.99. Japanese financial markets were closed Monday for a public holiday.

On the top-tier Prime Market, the main decliners were electric appliance, nonferrous metal and securities house issues.

The U.S. dollar fell to the upper 151 yen range in Tokyo after Finance Minister Katsunobu Kato said earlier in the day that Japan is closely monitoring excessive fluctuations and disorderly movements in the currency market, while sharp declines of Tokyo stocks also prompted buying of the safe-haven yen, dealers said.

At 5 p.m., the dollar fetched 151.96-98 yen compared with 152.37-38 yen in London at 4 p.m. Monday. The U.S. currency market was also closed Monday for a national holiday.

The euro was quoted at $1.1548-1549 and 175.49-53 yen against $1.1561-1563 and 176.14-22 yen in London late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.660 percent, down 0.030 percentage point from Friday's close, as the debt was bought on receding expectations that the Bank of Japan will raise interest rates soon.

Stocks were sold almost across the board, with the benchmark Nikkei closing below the 47,000 line, as the Komeito party's announcement Friday that it was leaving the LDP-led coalition sparked political uncertainty, including over whether LDP leader Sanae Takaichi will become Japan's first female prime minister.

The Nikkei's drop came after the index surged over 2,000 points last week on hopes for expansionary fiscal policies after Takaichi became party leader.

While the LDP could form a new ruling coalition or opposition parties could field a joint candidate for prime minister, "expectations for expansionary fiscal policies are unlikely to fade suddenly," said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.

"Until uncertainties recede, the market may remain volatile, but hopes for fiscal stimulus are likely to continue supporting the market," she added.
However, Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., said, "There is concern over whether parties could reach a consensus on fiscal policy, and even if opposition parties were to form a coalition government, uncertainties would remain about its sustainability, which could weigh on the market."

Selling accelerated as investors unloaded exporter shares on the stronger yen. The market was also weighed down by worries that U.S.-China trade tensions could worsen.

Meanwhile, the benchmark price of gold set by Tokyo's Tanaka Precious Metal Technologies Co. hit an all-time high of 22,463 yen per gram after exceeding 22,000 yen for the first time in the morning, reflecting strong demand amid concern over U.S.-China trade tensions.
 
 

Japanese convenience store chain operator Ministop Co said Thursday it will resume sales of deli items prepared in in-store kitchens beginning this month, following a suspension after some shops were found to have falsified expiry dates.

The subsidiary of Japanese retail giant Aeon Co said it will also reexamine operation manuals and introduce surveillance cameras in kitchens to prevent any recurrences. Operations will first restart in stores verified by an in-house team.

The convenience store chain announced in August that some of its stores had faked the expiry dates of certain products, leading it to suspend sales of onigiri rice balls, bento lunches and other deli items the same month.

It investigated around 1,800 stores across the country, of which misconduct was discovered at 25 stores.

"Our revenue has been hit by the decline in customer traffic since we halted the sale (of some foodstuffs)," Masashi Hotta, president of Ministop, said at an online press conference, noting that the scandal is expected to have a negative impact of around 1 billion yen ($6.6 million).

"It will take some time before all stores will be fully operational," Hotta said.
 

 

Activist investors are likely to find more opportunities in Japanese real estate as unrealized gains are poised to swell under new Liberal Democratic Party leader Sanae Takaichi.

The prospect of faster inflation and rising asset prices under Takaichi, who’s almost certain to become the country’s next prime minister, is seen as favoring loose monetary policy that would probably further boost paper gains in corporate property. That’s a lure to activist funds looking to raise shareholder value.

The value of such assets for about 330 major listed companies has already grown to an aggregate ¥31 trillion ($203 billion), according to compiled data, due to rising land prices and property development. That’s an increase of 26% from five years ago, and some strategists project it will rise further.

Should fiscal spending expand while the Bank of Japan is restrained from hiking rates, "a scenario is conceivable where inflation progresses, boosting firms’ unrealized gains, and activists move in,” said Daisuke Uchiyama, a senior strategist at Okasan Securities.

At least seven firms, including Mitsubishi Estate and textile maker Katakura Industries, are sitting on unrealized property gains that exceed their market capitalization, the data showed.

Activists have increasingly been urging companies to sell property and expand shareholder returns. Just last month it was reported that Elliott Investment Management had taken a stake in Kansai Electric Power, urging it to get rid of non-core assets. Kansai Electric had unrealized real estate gains of ¥220 billion.

Another example is a move by City Index Eleventh, an investment firm linked to activist investor Yoshiaki Murakami, to take a holding in department store operator Takashimaya, which has paper gains of ¥130 billion on its property assets.

Corporate governance reforms are also compelling firms to reassess their asset holdings.

Significant unrealized gains on property are hidden assets following cash and cross-shareholdings, and "companies failing to utilize them are becoming more noticeable,” said Masayuki Kubota, chief strategist at Rakuten Securities. He expects activist pressure on such firms to grow.

Including a company’s real estate market value into its price-to-book ratio (PBR) drives the ratio lower. The smaller this adjusted PBR is, the greater the unrealized gains on its real estate holdings and the more undervalued the stock is likely to be.

The gap is particularly pronounced in sectors such as real estate, warehousing and land transportation, as well as in retail, textile, and information and communications, according to calculations.

This puts them in the crosshairs of activists looking to squeeze out more corporate value.

"We are likely to see companies in the retail, textiles and warehousing sectors getting targeted,” Okasan’s Uchiyama said. He added that firms that have actually responded to activists by selling real estate remains limited so far.

The PBR of Mitsubishi Estate falls to 0.7 times from 1.7 times when its ¥5 trillion of unrealized gains are taken into account. The real estate company’s market capitalization is ¥4.24 trillion. Adjusted ratios for railway firm Sotetsu, film maker Toho and retailer Marui are also significantly below their standard PBRs.

Mitsubishi Estate spokesperson Yusuke Iwamoto declined to comment on any investments or requests for engagement from activists.

Tetsuya Murakami, manager of the management strategy office at Sotetsu, said his company hadn’t received any requests from activists for specific asset sale proposals or related engagement. Katakura didn’t respond to requests for comment, while Toho and Marui said they were unable to respond immediately.

Many institutional investors also consider that companies should review their real estate holdings to improve balance sheet efficiency.

"If they support activists’ proposals, the impact will be significant,” said Bruce Kirk, chief Japan equity strategist at Goldman Sachs Japan.

Stocks with large property holdings, and where activists have got involved, such as Sumitomo Realty & Development, Tokyo Gas and warehouse firm Mitsui-Soko, have largely outperformed their respective Topix sector indexes over the past year.
 
 

Some 80 pct of households in Japan have felt the impact of rising prices on their family budgets, a survey conducted by Sumitomo Life Insurance Co. in early September showed Thursday.

The online survey, which covered 5,484 people in their 20s to 60s from across the country who are working as regular employees, showed that 82.9 pct said their household budgets had been affected by inflation, up from 78.9 pct in the previous year's survey.

Of the respondents affected by inflation, 91.3 pct said price increases had impacted their food expenses, while 61.5 pct felt the impact on electricity bills.

Over half of the respondents answered that their cost of living had increased, with average monthly living expenses rising by 9,636 yen.

Regarding rice, whose prices have spiked in the country, 26.4 pct said they had avoided buying the staple due to the high prices. When asked what they considered to be a reasonable price for rice per 5 kilograms, 34.0 pct, the largest proportion, answered 2,000 yen or under.
 
 

Japanese stocks have hit a record for the ninth time in about six weeks, driven higher by a major transaction involving a Japanese company and on continued hopes for a rate cut in the United States.

Optimism surrounding the election of Sanae Takaichi as president of the Liberal Democratic Party has waned as uncertainty has taken hold, with political calculations becoming more complicated and her ascension to the prime ministership looking less like an absolute certainty.

The benchmark Nikkei 225 stock index hit 48,597.08 — the new record — shortly before the closing bell on Thursday.

SoftBank Group led the rally, with its share price rising 11.43% a day after it announced a $5.4 billion purchase of Zurich’s ABB.

Other tech and electronics companies helped drive the index higher, with Panasonic gaining 6.58% and Tokyo Electric Power up 4.94%.

The benchmark finished the day up 1.77%, at 48,580.44. The yen remained weak, moving above ¥153 to the dollar in the afternoon.

The market has been enthusiastic about the shifting political landscape over the past month, sending the Nikkei index to three all-time highs this month, following six in September.

The election of fiscal and monetary dove Takaichi as the new ruling party leader boosted the market dramatically on Monday, with the benchmark gaining over 5% and hitting the 48,000 level for the first time ever.
The possibility of the Nikkei 225 reaching 50,000 has now emerged as a theme.

Volatility is expected in the coming days and weeks, as the economic outlook under Takaichi remains uncertain — especially as she works to pull together a workable government, and has encountered some setbacks.

“Stock prices aren’t determined solely by domestic politics. There’s a global financial trend driven by the Fed’s rate cuts underpinning everything,” said Takahide Kiuchi, executive economist at Nomura Research Institute.

“As long as that doesn’t collapse, the tail wind will likely continue. If it does, then it wouldn’t be strange to see another 2,000-point rise within the year — meaning the Nikkei reaching 50,000 by year-end isn’t out of the question.”
 
 

Nissan Motor Co. said Wednesday that it will start accepting orders for the third-generation Leaf electric vehicle in Japan on Oct. 17.

The new model can travel 702 kilometers on a single battery charge, about 50 pct more than the second-generation Leaf. A battery can be charged from 10 pct capacity to 80 pct in around 35 minutes, some 30 pct faster than the previous model.

The Japanese automaker positions the Leaf as the next mainstay car, encouraging consumers to switch from gasoline-powered or gas-electric hybrid vehicles.

Nissan already launched the new model in the United States in late September and plans to do so in Europe in spring 2026.

The company has sold over 700,000 units of the Leaf globally since its first-generation model was released in 2010 as the world's first mass-market EV. The second-generation model was launched in 2017.
 
 

Qilin, a ransomware group with a track record of cyberattacks on major entities around the world, claimed responsibility on Tuesday for a hack on Japan’s Asahi Group, which disrupted production at the beer and beverage giant.

Asahi’s beer-making subsidiary, Asahi Breweries, said on Monday that it had restarted production at its six Japanese beer plants on Oct. 2. It first said it had been hacked on Sept. 29.

Qilin, which operates a ransomware-as-a-service platform that allows users to carry out attacks in exchange for a percentage of extortion proceeds, posted 29 images to its website on Tuesday of what the group claims to be internal Asahi documents.

The group said it had stolen more than 9,300 files, or roughly 27 gigabytes of data, according to the entry on its website.

The authenticity of the documents could not immediately be verified.
An Asahi spokesperson said in an email late Tuesday that the matter was still under investigation and the company declined to comment on Qilin's claims, or any details about extortion demands or negotiations.

Qilin did not respond to a request for comment.

Qilin has been a prolific ransomware service since first emerging in 2022 with 870 claimed attacks, according to data compiled by eCrime.ch, a cybercrime research platform.

The group was behind the June 2024 hack of British diagnostic services provider Synnovis, which officials said in June 2025 contributed to the death of a London hospital patient.
 
 

The surprising selection of Sanae Takaichi as president of Japan's ruling party may further push up the Nikkei stock index to the 50,000 threshold, aided by a weaker yen as prospects of an imminent interest rate hike by the Bank of Japan recede.

The upward momentum of the key index, however, may be short-lived due to political uncertainty as fiscal dove Takaichi may find it hard to implement economy-supporting policies with her Liberal Democratic Party leading a minority government.

Boosted by optimism about expansionary fiscal measures, the Nikkei surged 4.75 percent Monday to end at a fresh record high at 47,944.76, while the Japanese currency plunged by around 3 yen against the U.S. dollar to hit a two-month low in the 150 level.

Recent advances of the Nikkei came after it sank to the 31,000 level in April due to concerns about higher U.S. levies before recovering as a Japan-U.S. trade deal in July to reduce auto and other tariff rates helped improve investor sentiment.

"The yen fell to 150 against the dollar and a further drop would increase the likelihood of the Nikkei reaching 50,000, considering the impact of a weaker currency on corporate earnings," said Makoto Sengoku, senior equity market analyst at Tokai Tokyo Intelligence Laboratory Co.

The yen could slide even more if concern about the U.S. economic outlook recedes due to additional monetary easing by the Federal Reserve and a U.S. government shutdown ends relatively soon, he said.

Solid corporate earnings are also likely to bolster the market, with the BOJ's latest Tankan survey showing confidence among major manufacturers improved for the second straight quarter.

"It's highly unlikely that corporate earnings will deteriorate and cause stocks to fall," said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute.

The Japanese central bank is now seen as facing headwinds to pursue additional interest rate hikes at its policy meeting late October, as Takaichi has aired concern about the adverse impact of U.S. tariffs on the Japanese economy in the future.

Speculation about additional rate hikes had grown recently amid surging food and other prices, after two of the nine board members voted against leaving the policy rate unchanged at the last meeting in September.

"It is too early to assume deflation is over and feel relieved," she told a press conference Saturday after being elected as LDP chief, apparently signaling to the BOJ to be cautious about further rate increases.

"I will have to closely communicate with the BOJ" until inflation led by higher wages accompanied with expanding demand is achieved, she said.

Takaichi also said in a recent Kyodo News survey of LDP leadership candidates that the BOJ should keep intact its policy rate at around 0.5 percent, contrasting with the other four candidates, who refrained from commenting on whether it should raise or reduce rates.

Some analysts, meanwhile, warned the equities market may be dampened by the unclear political outlook given the ruling coalition of the LDP and Komeito lack a majority in either house of parliament.

"The sustainability of stock rises may not last so long" as it remains unclear how the ruling coalition will cooperate with other parties to implement policies, said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

"The feasibility and scale of policies will become apparent if such issues are likely to be cleared, but it will take some time to reach that stage," he added.

Concerns over rising borrowing costs also linger, as expansionary fiscal policies such as more government spending and tax cuts would lead to further deterioration in Japan's fiscal health, which is already the worst among developed economies, brokers said.
 


 

Asahi has partially restarted production at all six of its breweries in Japan after it was forced to close them due to a cyber-attack.

Several major shops in Japan including 7-Eleven and FamilyMart had warned last week that they were running low on stocks of the beer after the hack affected Asahi Group's ordering and delivery systems in the country.

Asahi is the biggest brewer in Japan, but it also makes soft drinks and food products, as well as supplying own-brand goods to other retailers.

The partially restarted breweries produce best-seller Asahi Super Dry, but the firm is also restarting plants that produce food and soft drinks.

The cyber-attack is the latest to have affected operations at major firms, with carmaker Jaguar Land Rover still struggling to recover from an attack that shut down production.

Asahi Group also owns Fullers in the UK and global brands including Peroni, Pilsner Urquell and Grolsch. However, only Asahi's operations in Japan - which account for about half its sales - have been affected by the attack.

Asahi said the re-opened beer plants in Japan were "not yet fully operational", and that two of its soft drinks factories that have partially re-opened were also not running at full capacity.

It added there were a further five soft drinks factories that "will resume gradually in accordance with shipments"

All seven of its food plants have resumed operations, though they are also not yet fully operational.

Asahi said the production systems at the factories themselves had not been affected by the cyber-attack, but it had been forced to halt production because it could not process orders and shipments.

The company added that its breweries were producing only Super Dry, and that from 15 October it would resume shipments of 16 products, including its non-alcoholic beers Asahi Dry Zero and Asahi Zero, as well as Clear Asahi and whiskey Black Nikka Clear.

It said some product launches would also be postponed.
 
 

Matsudo High School, a public school in the town of Matsudo, Chiba Prefecture, used to have a little campus store where students could buy bread, which in Japan encompasses snack-sized buns with sweet or savory fillings.

That’s still not a ton of variety, though, and in 2022 the store, having trouble making ends meet, closed. Following that, the only snack options in the school were a pair of vending machines, once again stocked with just breads.

In late September, though, a new shop opened inside Matsudo High, and it’s got a much, much, wider selection, because it’s a full-on Japanese convenience store.

https://youtu.be/D3Leq5UJKOQ

The store opened on September 25, and while it’s not huge, its floor space of 32 square meters (344 square feet) makes it as big as some convenience stores you’ll find out in Japanese towns or attached to train stations.

What’s more, this is a full-fledged branch of Yamazaki Shop, the chain of convenience stores operated by Yamazaki Baking Company, and is stocked with roughly 1,000 different items.

Since it’s located within the school building and isn’t accessible by the general public, obviously it doesn’t sell alcohol of tobacco products, but students can come in and get Japanese convenience store staples like onigiri/rice balls, bento boxed lunches, cup ramen, soft drinks such as tea and juice, and even sundry items like pens, stationery, and hand towels. It’s the first instance of a convenience store chain opening a branch inside a public high school in the prefecture.

The school does have a couple of stipulations for this unique branch. First, while self-checkout registers are becoming more common in Japanese convenience stores, all of the Matsudo High Yamazaki Shop’s sales have to be rung up by an employee, and the bread and rice balls they sell also must have been made that same day.

It also doesn’t operate under the 24-hours-a-day, seven-days-a-week schedule that’s the norm for Japanese convenience stores, and is instead open only on weekdays from 10: 30 a.m. to 6 p.m., making it accessible to kids after class and extracurricular activities.

As for whether the Yamazaki Shop will prove more profitable than the school’s previous bread-only shop, the owner, who has a half-dozen other convenience store franchises, isn’t too terribly concerned, as he’s a Matsudo native who wants to do something nice for his hometown.

The school’s principal also says they also hope for the store to serve as an educational opportunity for programs in which students can learn about subjects such as marketing and distribution.
 

All Nippon Airways Co. plans to raise the mandatory retirement age for its employees from 60 to 65 starting in fiscal 2027 and proposed the measure to its labor union on Tuesday.

Amid increasingly serious labor shortages, ANA aims to better utilize the expert knowledge of veteran workers and pass on their skills to younger employees.

Currently, ANA signs reemployment contracts with employees every year after they reach 60. Those employees can continue to work for the company until they turn 65 as non-regular staff.

Under the planned system, the employees will continue to be regular-contract workers. However, limitations on job roles and other matters for employees aged 60 or over will remain.

In fiscal 2024, ANA hiked non-regular employees’ salaries from 40% to about 60% the level they had as 59-year-old regular-contract workers.

By making senior employees regular-contract workers, their salary levels will be further hiked to about 70%. For pilots and mechanics, whose roles are highly skilled and require national licenses, it will be possible for the level to be about 90%.

The number of ANA employees aged from 60 to 65 is predicted to be about 1,500 in fiscal 2027. The company therefore forecasts that its labor costs will be increased by several billions of yen as a result of its plan.

Going forward, the company will hold discussions with the labor union to make the plan an official decision.
 
 

Politics dominated currency markets on Monday as the Japanese yen weakened by the most in five months against the dollar with Sanae Takaichi looking set to become Japan's next prime minister, and the euro slid after France's new government quit.

Takaichi is a former economic security and internal affairs minister with an expansionary fiscal agenda for the world's fourth-largest economy. She won the ruling Liberal Democratic Party's leadership election at the weekend, putting her on track to become Japan's next prime minister.

Her victory caused traders to reduce bets that the Bank of Japan will hike interest rates this month and sent the yen tumbling across the board.


UNCERTAINTY OVER POLICY PRIORITIES IN JAPAN

The dollar at one point rose more than 2% to 150.47 yen, its highest level since early August. It was last up 1.7% at 149.91, and if sustained, that would be its biggest daily gain since May 12.

The euro hit 176.22 yen in Asian trade, its highest ever against the Japanese currency. It later pared those gains to be up 1.2% at 175.3 yen following the collapse of the French government.

Deutsche Bank had advised clients to position for yen appreciation, but they "are now getting out following the LDP election outcome this weekend", the bank's global head of FX research, George Saravelos, said in a note to clients.

"Sanae Takaichi's surprise victory reintroduces too much uncertainty around Japan's policy priorities, and the timing of the BoJ hiking cycle," he wrote.
Long-dated Japanese government bonds sold off. And the yen swaps market indicated just less than a 50% likelihood of a rate hike by December, down from 68% on Friday.

However, some investors said U.S. factors that could weigh on the dollar in the coming weeks, such as the Federal Reserve continuing to cut rates, might stop traders selling the yen for dollars too dramatically.

"Most see short dollar-yen as the cleanest expression of a weaker dollar. Takaichi is the idiosyncratic risk. But the Fed is the bigger, more obvious, more immediate macro risk," said Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments.


PRESSURE ON MACRON AFTER LATEST SETBACK

Meanwhile, the euro slid after France's new Prime Minister Sebastien Lecornu and his government resigned on Monday, just hours after the announcement of the cabinet line-up, deepening France's political crisis.

The euro dropped 0.6% to $1.1681 and also slid 0.3% against thepound to its lowest in nearly a month.

"The pressure now goes back to President Macron to see how he deals with this deadlock," said Lee Hardman, senior currency strategist at MUFG.

"For the market, the worst case would be if he tries to break that deadlock by calling snap parliamentary elections. That would extend the uncertainty in the near term and likely trigger another leg lower for the euro."

Sterling was down 0.3% against the dollar at $1.3431 , while the Swiss franc softened a similar amount to 0.7993 per dollar.

Elsewhere, this week traders will have to grapple with the absence of important U.S. economic data as the government shutdown continues.

That could make it hard to shake current market pricing signalling that easing at the Fed's October meeting is a near-certainty. Fed funds futures implied a 96.7% probability of a 25-basis-point rate cut, according to the CME Group's FedWatch tool.
 
 

Nissan Motor Co will put on hold a plan to make electric vehicles in the United States as EV sales are slowing and a tax break on EV purchases was eliminated in the country, a source familiar with the move said.

The Japanese automaker is instead considering reviving the once-discontinued Xterra sport utility vehicle in a hybrid format in 2028.

According to the source, Nissan has already asked parts suppliers to suspend work related to its initial goal of starting production of SUV-type EVs at its plant in Canton, Mississippi, in the same target year.

The automaker now envisions producing Xterra SUVs at the Canton facility.
As it moves to streamline operations in a bid to restore profitability, Nissan signaled to partner companies in July that it was delaying the start of EV production at the plant by up to a year.

It came to light in September that Nissan had temporarily suspended production at an eastern Japan plant of its Ariya electric vehicle for the U.S. market. But the automaker still plans to launch a new model of the Leaf EV in the United States in the fall.

Slowing global EV sales have forced automakers to reconsider their EV strategies.

In May, Honda Motor Co. said it was reducing its investment plan for EV technology through fiscal 2030 to around 7 trillion yen ($47.6 billion) from the previously scheduled 10 trillion yen, citing lower-than-expected growth in the EV market.
 
 

The dollar headed for its worst week since late July on Friday as the U.S. government shutdown increased uncertainty, while the yen pulled back from this week's highs as traders mulled the Bank of Japan's next move ahead of a ruling party leadership election this weekend.

The dollar index , which measures the greenback against a basket of key currencies, was flat at 97.77. The euro was up 0.2% at $1.1736. Sterling firmed 0.1% to $1.345.

"We've got the government shutdown in the U.S. ... for market participants it means we're not getting any of the data releases we would usually get like the non-farm payrolls data today," said Michael Brown, senior research strategist at Pepperstone.

"I think that's why we're seeing things trade in such listless fashion."



BOJ GOVERNOR STRIKES CAUTIOUS TONE

Though ISM data is due out of the U.S. later, Brown said he did not expect it to move the needle.

The yen eased 0.1% to 147.375 per dollar, having earlier fallen as much as 0.4%. But it remained on track for a 1.4% advance this week that would be the biggest since mid-May.

BOJ Governor Kazuo Ueda struck a cautious tone in comments about the global economy, lowering expectations of an imminent rate hike. Markets were also focused on a Liberal Democratic Party election on Saturday that will determine Japan's next prime minister.

"Market participants are a little bit disappointed potentially ... he (Ueda) didn't really lean into the idea of an October rate hike as much as some of his colleagues have done in recent sessions, that's why we've seen a little bit of pressure on the yen," said Brown.

Markets were keeping a close eye on speeches by BOJ officials this week after the central bank's tankan survey on Wednesday showed confidence among big manufacturers improved for the second straight quarter.

Deputy Governor Shinichi Uchida said on Thursday that the business mood was improving and corporate profits remained high even as U.S. tariffs weighed on exports.

But in a speech on Friday, Governor Ueda put the focus back on how global factors, particularly the health of the U.S. economy, could affect the trajectory of wages and prices in Japan.

Goldman Sachs economists said in a note that Ueda's speech "supports our view that the possibility of an October rate hike is very low."

The LDP election also has consequences for Japan's budget and central bank policies.

Among the frontrunners, dovish party veteran Sanae Takaichi could trigger more bond market uncertainty, while farm minister Shinjiro Koizumi and top government spokesperson Yoshimasa Hayashi are less likely to rock the boat.



TWO MORE FED RATE CUTS EXPECTED THIS YEAR


In the U.S. overnight, a Chicago Fed report that combined private and available public data estimated the September jobless rate was 4.3%, the same as in August and evidence that a feared rapid rise in unemployment had not yet begun.

But details of the report, along with other data, pointed to sluggishness in the labour market. The ADP National Employment report on Wednesday showed private payrolls decreased by 32,000 in September, boosting expectations that the Federal Reserve would cut interest rates twice more this year.

Traders see a 25-basis-point cut at the Fed's October meeting as almost certain and are pricing in an 89% probability of an additional cut in December, according to the CME Group’s FedWatch Tool.

Dallas Fed President Lorie Logan on Thursday said the central bank appropriately cut rates last month to guard against the risk of a sharp deterioration in the job market, but said that so far the cooling has been gradual and signalled she was not eager to cut rates further.

Elsewhere, a few Fed, ECB, Bank of England central bankers were due to speak at the farewell symposium of the Dutch central bank governor Klaas Knot, including ECB President Christine Lagarde and the Bank of England's Andrew Bailey.
 
 

Japanese and U.S. business leaders issued a joint statement Friday demanding that their governments "secure transparency and predictability of international trade and investment."

The statement, adopted by the members of the Japan-U.S. and U.S.-Japan Business Councils at their two-day joint meeting in Tokyo, which began Thursday, comes as U.S. President Donald Trump's tariff policy is adding to global economic uncertainties.

Both governments should "reaffirm" their support for foreign direct investment between Japan and the United States while "ensuring investment screening measures are narrowly tailored to national security concerns," the statement added.

The leaders from more than 120 major companies also underscored the importance of the public and private sectors collaborating in "transparent, accountable, and risk-aware" artificial intelligence development and requested visa facilitation for business trips by experts.

"We have a sense of danger over the unpredictable situation," Japan-U.S. Business Council Chair Jun Sawada, also chairman of NTT, told a press conference after the meeting. "I want both governments to make efforts to eliminate uncertainty as much as possible."

David Goeckeler, head of the U.S. council and chairman and CEO of U.S. flash memory-maker Sandisk, said, "It's very important that we have a point of view" on political measures. He then voiced intention to ask the U.S. government for improvements in the investment environment.
 
 

 
A new luxury hotel opened in Nagoya on Wednesday, with standard room prices as high as 3.75 million yen per night, as it seeks to attract affluent tourists with its panoramic view of nearby Nagoya Castle.

The 11-story Espacio Nagoya Castle, designed in the style of a Japanese castle, has 100 guest rooms themed after Japanese samurai culture and traditional crafts, according to its operator Espacio Enterprise Co.
Room prices start at 250,000 yen per night, and the building features a spa and pool located on one of its two basement levels.

The site was formerly occupied by the prestigious Hotel Nagoya Castle, which welcomed members of the Japanese imperial family and foreign dignitaries. It closed in 2020 due to aging facilities.

Nagoya-based trading and pharmaceutical company Kowa Co., the parent company of Espacio Enterprise, bought the land and constructed the new hotel.

More luxury hotels are scheduled to open in Nagoya in response to the influx of tourists to Japan, and in expectation of the opening of a maglev train line that will run from Tokyo to the city and eventually extend to Osaka.
 
 

Isuzu Motors on Wednesday held a groundbreaking ceremony for a vehicle plant in South Carolina, which will become the Japanese commercial vehicle maker's first independent factory in the United States.

The new plant is expected to start truck production in 2027. Isuzu aims to ease the impact of the high tariff policy of the administration of U.S.

President Donald Trump, which has increased export costs, by expanding local production while reducing shipments from Japan.

The automaker began vehicle sales in North America in 1984 and logged a record high of some 44,000 units in fiscal 2023. Currently, Isuzu exports about 40% of the automobiles it sells in the region from Japan and consigns final assembly to U.S. companies for the rest.

Isuzu plans to produce 50,000 vehicles, including electric trucks, at the South Carolina plant in 2030, intending to supply most of its vehicles for the North American market from the new factory.

The construction has been planned before the launch of Trump's tariff policy. Having an independent factory in the United States "has been our dream," Isuzu Chairman Masanori Katayama told reporters.

Having a U.S. plant will "increase measures we can take in response to the U.S. tariffs," such as local procurement of parts, he also said.

Isuzu has yet to decide whether to produce all vehicles it sells in North America at the South Carolina plant in the future, Katayama said. But he added that it could be possible.

The groundbreaking ceremony was attended by about 150 people, including South Carolina Gov. Henry McMaster and Japanese Ambassador to the United States Shigeo Yamada.
 


 

Toyota Motor Corp. on Thursday opened Woven City, a demonstration site for advanced technology built on the former grounds of a factory in Susono, Shizuoka Prefecture.

The site will serve as a location for the development of new products and services, with 20 companies and individuals participating, including Toyota and nonautomotive firms.

Experiments in various fields, including autonomous driving technology, will be conducted, while employees and other people with connections to Toyota reside in the area.

On Thursday, Toyota disclosed to the press an autonomous robotic vehicle that leads cars to destinations, which is thought to be used for car sharing services in the future. The automaker also revealed single-person three-wheeled electric vehicles, which will be used as a means of transportation at Woven City.

“(Woven City) will serve as a test course for the future,” said Toyota Chairman Akio Toyoda at an opening ceremony.

The demonstration site currently covers 47,000 square meters, with the automaker planning to eventually expand it to 294,000 square meters.

Toyota has not specified construction costs or when construction will be completed, as the automaker plans to change the layout of Woven City based on future development of products and services.

Only a few households currently reside in the area, but about 300 people will move to there during the first phase. The number is expected to reach about 2,000 in the final phase.

Toyoda first announced the concept of Woven City in 2020 when he was the president. “We will build a ‘city’ from scratch,” he said at the time.

In October last year, construction work for the site’s initial phase was completed. The automaker has been preparing to start experiments since then.
 
 
 

Former Suntory Holdings Ltd Chairman Takeshi Niinami has resigned as chief of a major business body, the group said Tuesday, after he came under police investigation over supplement purchases.

The board of directors at the Japan Association of Corporate Executives, known as Keizai Doyukai, accepted his resignation request made at their meeting earlier in the day, it said.

Senior Vice Chairman Mutsuo Iwai, who is chairman of Japan Tobacco Inc., will serve as acting chair until a new chief is selected, it said.

Niinami told a press conference that he offered to resign "to avoid splitting" the association since he said the board had been divided over whether he should stay on.

"I do have regrets because there were still things that I wanted to do (as chief)," he added.

Niinami declined to provide details regarding the controversial supplement purchases, saying only that he will cooperate with the investigative authorities.

Prominent business figure Niinami, who has denied any wrongdoing, quit as chairman of the beverage maker on Sept. 1 but remained the business group's chief.

However, Niinami had stayed away from activities as head of the body, saying he would leave the decision over whether to dismiss him as chief to the association.

The graduate of the Harvard Business School led the Japan Association of Corporate Executives from April 2023 and has long served as a private-sector member of the government's key council on economic and fiscal policy.

Niinami said Tuesday he will continue to sit on the Council on Economic and Fiscal Policy, where important issues, including government spending and economic growth strategies, are discussed.

The membership of the Japan Association of Corporate Executives comprises around 1,700 top executives of some 1,200 corporations and formulate proposals on political, economic and social issues.

The members join the body's activities as an individual, not as representatives of their company or a specific industry, unlike the Japan Business Federation, or Keidanren, the country's most powerful business lobby where major companies are members.
 
 

Ambassador of Japan to Indonesia Masaki Yasushi highlighted the strong balance of trade between Indonesia and Japan during his tenure.

"Concerning trade, I think we keep a very good balance of trade," Masaki said at a media briefing marking the end of his assignment in Indonesia on Tuesday.

He underlined that trade is central to bilateral relations between the two countries, but also noted that cooperation goes beyond trade alone.

According to him, Japan and Indonesia have succeeded in maintaining a healthy balance of trade, and both sides are expected to continue this trend.

To support this balance, the two countries have bilateral agreements such as the Economic Partnership Agreement (EPA) and the Free Trade Agreement (FTA).

Masaki said the agreements had recently been reviewed and were seen as increasingly favorable for Indonesian exports to Japan, while also benefiting Japan.

In addition to trade, Masaki underscored Japan’s efforts to increase investment in Indonesia.

He said Japanese companies have expanded investments in sectors including infrastructure, automotive, agriculture, and fisheries.

He expressed confidence that such investments would further encourage Japanese corporate interest in Indonesia.

The ambassador also stressed the importance of exchanges between people from both nations, calling them vital for long-term bilateral relations.

"Exchange of people does not appear in trade figures. But for the future of our bilateral relations, it is very important," he noted.

Masaki officially began his tenure as Japan’s ambassador to Indonesia on October 24, 2023.

Born in Tokyo in 1962, he graduated from the Faculty of Law at the University of Tokyo before joining the Ministry of Foreign Affairs.

Since 2017, he served as Director of the European Bureau at the ministry and held various strategic positions in Europe before being assigned to Indonesia.