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

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

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

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

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

Similar moves may also be taken by other manufacturers.
 
 

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


About Axiom Space

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

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

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


About Mitsui & Co., Ltd.

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Foreign stock selloff hits multi-month high

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

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

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

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

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


US inflation data adds to investor caution

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

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

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


Trust accounts lead foreign equity withdrawals

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

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

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

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

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

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


Japanese investors reduce US and European bond holdings

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


‘We’ve reached our limit’

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

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

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

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

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

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

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


Accelerating diversification

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

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

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

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


High-altitude cultivation

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

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

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

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


Heat-related damage

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

 

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

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

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

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


Move seen as ‘surprise’

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

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

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

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

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


Concerns over volatility

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

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

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

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

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


Changes in economic structure

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

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

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

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

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

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

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

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

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

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


Little room for ingenuity

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

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

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

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


Containers also affected

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

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

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

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


Further push to inflation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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


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

https://youtu.be/1_iA4DEC1p0

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Higher tax-exempt limit

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

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

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

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

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

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

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


Related services grow

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

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

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

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

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

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


 

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

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

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

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

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

All Nippon Airways Co. (ANA) is considering the introduction of aviation fuel surcharges that would be added to airfares in accordance with fuel costs to domestic flights from fiscal 2027.

Due to worsening situation in the Middle East, fuel prices are surging. ANA has determined that rising costs would lead to a major decrease in its earnings unless those costs are passed on via airfares.

Since a greater burden on passengers may result in people flying ANA less often, the company is cautiously planning how to design the fare structure.

Fuel surcharges will be added to airfares for all the domestic routes. The calculation method and the timing to introduce the surcharges will be discussed henceforth. Introducing the new system is likely to take some time.

ANA introduced fuel surcharges to international flights in 2005. On Monday, the company announced that it will considerably increase the surcharges for international flights booked from May, to pass on the rising fuel costs.

Domestic flight routes are relatively short, which means the ratio of the fuel surcharge to the operation cost is small.

That is why ANA has not introduced fuel surcharges to domestic flights. Due to the rising fuel costs, however, Koji Shibata, the president of ANA’s parent company, ANA Holdings Inc., revealed on April 1 that the company would discuss various possibilities, including whether it should include fuel surcharges to domestic flights.

Currently, Fuji Dream Airlines Co. in Shizuoka is the only airline in Japan that has introduced fuel surcharges to domestic flights. The company has raised the surcharges for flights booked in May.

The increased surcharge for flights between Nagoya and Yamagata, Kochi and other cities is ¥2,800, four times higher than the previous month. Japan Airlines Co. and Skymark Airlines Inc. are set to introduce fuel surcharges to domestic flights in the spring of 2027.

In recent years, revenue from domestic flights has been declining due to the rise in personnel costs and maintenance charges caused by price surges and a weak yen.

According to the Land, Infrastructure, Transport and Tourism Ministry, the domestic flight business of six major airline companies, including ANA and JAL, would have been effectively in the red in the business year ending in March 2025 if they had no public financial support, such as a reduction or exemption of airport fees. Surging fuel costs will further add to those headwinds.

“I hear they are in a situation in which they have no choice but to consider raising airfares or taking other measures,” said Land, Infrastructure, Transport and Tourism Minister Yasushi Kaneko at a press conference after a Cabinet meeting on Tuesday when asked about the time frame for when airlines would introduce fuel surcharges to domestic flights.
 
 

An increasing number of companies are paying off the student loans of their employees. Thanks to a loan payment system introduced in fiscal 2021, both the workers and their employers are able to reduce their tax burden.

The companies’ move also aims to help secure talented individuals by alleviating the anxiety of young employees struggling with rising prices and higher interest rates.

“It felt like a burden thinking about how I would be paying back my loan for more than 10 years,” said Yuta Hashimura, 29. He joined Silver Life Co., a Tokyo meal delivery service company for the elderly, in 2019. Hashimura, who borrowed ¥2.8 million in interest-bearing student loans during his college years, had to pay back about ¥20,000 every month.

In his third year at the company, Silver Life launched a program to fully cover employees’ student loan payments.

The program is available to all employees, whether they joined the firm immediately after graduating or in the middle of their career. The company pays off the remaining balance over a period of seven years.

“It was a huge relief because I didn’t have to worry about paying the loans back,” Hashimura said. He now invests ¥20,000 in the Nippon Individual Savings Account investment program every month.

The company has shouldered about ¥40 million in total of student loans for about 40 employees. “We want our employees to feel secure and work with us for the long term,” said Arisa Izumi, 30, manager of the general affairs and human resources department at the company.


Avg. of ¥3.36 mil. per student

The Japan Student Services Organization (JASSO), which administers the national program to financially help students, offers three types of financial aid: grants with no repayment obligation, interest-free loans and interest-bearing loans.

In fiscal 2024, there were 3.58 million students at universities, junior colleges, graduate schools and other education institutions. Roughly one third, or 1.15 million, utilized financial aid, and 620,000 students within that amount took out interest-bearing loans.

Students can borrow ¥20,000 to ¥120,000 in interest-bearing loans per month, with an average total loan amount of ¥3.36 million per student. Paying back the loans typically takes 17 years on average.

A first-year student who is 18 years old and attends Meiji University recently moved to Tokyo from the Kansai region and said he is going to apply for financial aid.

“I was surprised that rent is higher than I expected in Tokyo. The cost of food and my student commuter pass is also expensive,” he said.

There are concerns regarding rising student loan rates following the Bank of Japan’s review of its monetary policy.

A fixed-rate loan in which the rate remains unchanged during the payment period jumped to 2.42% in March of this year from 0.07% in March 2020.

This means taking out loans of ¥3.36 million, the average amount, would require paying back ¥4.23 million based on the rate in March. The same amount would be ¥3.38 million based on the rate in March 2020.

A first-year female student who is 18 years old and goes to Sophia University, said, “I’m worried about paying back my loans after I start working.”


Aiming to secure talented staff

Students who have taken out student loans have their eyes on firms that offer payment support programs.

In fiscal 2021, JASSO established a system in which companies pay all or part of their employees’ student loans. Before the system was created, companies and others who paid off the loans would add relevant financial support to employees’ salaries. However, that increased employees’ income taxes.

By utilizing JASSO’s payment system, the entities can write off the amount to reduce the burden of corporation tax, which would also cut back on tax burden for employees.

Major security service provider Alsok Co. introduced the payment system in 2024, paying up to ¥1.08 million per person over five years for employees who have worked at the company for five years or less.

“We want to create a working environment friendly to employees and secure talented personnel,” said Maya Osaki, 51, executive officer and chief of personnel administration at Alsok.

The number of local governments offering similar financial support is also increasing.

The Yamagata prefectural government pays up to ¥1.248 million to individuals who live and work in the prefecture for at least five years after graduating from universities or other institutions. The local government splits the cost with the prefecture and all 35 municipalities in the prefecture.

According to a survey by the Cabinet Secretariat, such programs have been introduced in all 47 prefectures and 876 municipalities as of June 2025.

According to JASSO, the number of payment system cases involving companies or local governments was 320 in fiscal 2021 but jumped to 4,852 in fiscal 2025. About 26,000 company employees and other types of employees have received the support.

In a survey by job information agency Mynavi Corp. conducted on people who graduated this year, 22% of respondents said that the availability of a student loan payment program affected their choice of employers, indicating the program was a key factor in students’ job search activities.

A woman said in the survey that she only applied to companies with the support program.
 
 

Competition in Japan’s electric minivehicle and compact EV market is set to rise in summer 2026.

BYD’s entry into the segment, along with Nissan and Honda rolling out lower-cost or new models, could widen buyer choice and put pressure on prices.

Nissan plans to launch a cheaper version of its Sakura this summer, cutting the price by 150,000 yen (US$940) to 1.9 million yen (US$12,000).

Honda launched the N-One e: in 2025 and plans to release the Super-One compact EV in late May, based on that model.

BYD plans to launch the Racco in Japan this summer at about 2 million yen (US$13,000), making it its first model built exclusively for the Japanese market.

Japan’s EV adoption remains low, but some industry officials expect higher fuel prices to lift demand.
 
 

The production of domestic coffee beans is spreading nationwide, and there are moves to expand cultivation into colder areas in north of Japan, including Hokkaido and the Tohoku region.

Amid predictions that climate change will lead to the amount of land suitable for production being cut by almost half, there is now a focus on whether cultivation in the northern areas will bear fruit.


Step-by-step progress

Inside a plastic greenhouse in Yamagata on the afternoon of March 24, about 40 coffee trees had grown to about 2 meters tall, with some already bearing bright red berries.

“It’s still not enough to process into beans, but the yield is better than last year,” said Hiroyuki Akatsuka, 55, an official at Bankoku Coffee, a local food wholesaler who manages the farm. “We’re making progress step by step,”

The company, which sells coffee beans and related products, has been cultivating coffee trees on leased farmland in the city since 2020, as part of its efforts in employee education and regional development. The project initially struggled, and half of the about 150 trees withered and died.

The company implemented measures, such as raising temperatures in the greenhouse during the winter. This led to its first harvest in 2024, and the company now aims to commercialize the beans by increasing yields.

“[The coffee] had a smooth mouthfeel and a well-balanced tangy orange-like acidity,” said Akatsuka, following a tasting session with his staff. “I hope to open a cafe next to the farm and turn it into a community hub where people can enjoy the flowers and experience the harvest firsthand.”


Looming crisis

Coffee bean cultivation typically requires an average temperature of around 20 C, significant daily temperature fluctuations and annual rainfall of 2,000 millimeters. The main production regions are concentrated in tropical areas near the equator, known as the “coffee belt,” and are primarily in Central and South America and Asia.

Global coffee demand continues to climb. According to UCC Japan Co. and other industry sources, projected global consumption in fiscal 2025 is projected to reach 10.16 million tons, an increase of about 1 million tons from a decade ago.

A looming crisis remains, however, as a U.S. private research institute predicts that areas suitable for cultivating the major Arabica variety will be halved by 2050 due to rising temperatures and decreased rainfall.

More companies from the Kanto region to Okinawa Prefecture are entering the coffee cultivation business in anticipation of rising demand and a possible future decline in overseas production, according to Kosuke Yamamoto, the 66-year-old president of Yamako Farm.

The Okayama-based company has provided coffee seedlings and technical expertise since 2020, and according to Yamamoto is now receiving inquiries from as far north as Hokkaido and the Tohoku region.

 

Aiding reconstruction

To explore the feasibility of whether Hokkaido could become a suitable area for cultivation, Hokusei Gakuen University in Sapporo has been researching cultivation methods for three years, starting from fiscal 2023, in cooperation with Rakuno Gakuen University in Ebetsu, Hokkaido.

As a means of ensuring seedlings survive through the winter season, surplus heat generated from biogas power production was utilized. This led to the successful growth of seedlings up to 1 meter tall in a greenhouse at Yuumu Farm in the town of Shintoku.

The research ended at the end of March, but the facility continues to grow the seedlings. “It opens up possibilities, such as developing new products using coffee and milk from the farm,” said Masatoshi Yuasa, 47, of the farm. “There’s a long road ahead, but it is worth the challenge.”

The Hirono Town Promotion Corporation in Fukushima Prefecture began cultivating coffee in 2020. Although many trees die, the corporation is continuing to experiment by changing the amount and frequency of watering.

“I want to succeed in cultivation and contribute to efforts to recover from the Great East Japan Earthquake,” said Hirofumi Nakatsu, 68, a representative of the corporation.


World’s 4th-largest consumer

According to the All Japan Coffee Association, Japan is the world’s fourth-largest coffee consumer, with about 400,000 tons consumed in 2023 — an average of one cup per person per day — despite relying on imports for almost its entire supply.

The United States ranked 1st with approximately 1.4 million tons, followed by Brazil at 1.38 million tons and Germany at 450,000 tons.

In recent years, China has emerged as a rapidly growing market, with demand fueled by urbanization and economic growth.

According to a report by the U.S. Department of Agriculture, China’s coffee consumption tripled from 120,000 tons in 2010 to more than 360,000 tons in 2024.
 
 

The Japanese government said Friday it will provide up to 60 billion yen ($376 million) in subsidies to a Sony Group Corp. unit to help mass-produce cutting-edge image sensors, aiming to secure stable supplies amid growing global demand.

Sony Semiconductor Manufacturing Corp. is expected to begin production at a new plant under construction in Kumamoto Prefecture, southwestern Japan.

Industry minister Ryosei Akazawa told a press conference after a Cabinet meeting that the government expects the initiative to help ensure stable supplies of image sensors, which he described as "key devices in the age of artificial intelligence."

Image sensors, which convert light into electrical signals for image processing, are widely used in smartphones and automotive cameras. Demand has risen with the expansion of AI-related applications and automotive technologies.

Prime Minister Sanae Takaichi is seeking to ramp up investment in areas critical for economic security. The subsidy is based on Japan's economic security promotion law.
 
 

 
The government on Thursday released a draft road map on public-private investment that features a goal of acquiring an about 25% share of the global market in self-driving vehicle sales in the 2030s.

The draft was shown at a subcommittee meeting of the Council for Japan's Growth Strategy, chaired by Prime Minister Sanae Takaichi.

At the council's previous meeting in March, the government designated a total of 61 goods and technologies for priority investment by the public and private sectors and presented a draft investment road map for 27 of them.

At Thursday's meeting, the government discussed actual support programs and goals for the remaining 34 goods and technologies.

Deputy Chief Cabinet Secretary Masanao Ozaki, who heads the subcommittee, instructed senior officials of relevant ministries and agencies to urgently work out truly effective and necessary policies.

The government also set a goal of capturing ¥5 trillion ($31 billion) in 2030 in the global market for vertical artificial intelligence, tailored for specific industries and estimated at ¥33 trillion.
 
 

Japan has pledged to provide $10bn (£7.4bn) to help its Asian neighbours, especially those in South East Asia, secure energy including crude oil as the region reels from disruptions caused by the Iran war.

Japanese Prime Minister Sanae Takaichi announced the new cooperation framework on Wednesday after an online meeting with other Asian leaders.

Japan relies on South East Asia for petroleum-derived products, most notably medical equipment - something that Takaichi stressed at a press briefing on Wednesday.

"Japan is closely interconnected with each Asian country through supply chains and mutually dependent with them," she said.

Japan's cooperation framework aims to help Asian countries procure crude oil and petroleum products, as well as maintain supply chains and expand stockpiles.

Asia is especially vulnerable to energy supply disruptions stemming from blockades of the Strait of Hormuz, as nearly 90% of the oil and gas passing through the key waterway is bound for the region.

Japan's foreign ministry said the $10bn in financial aid was roughly equivalent to a year's worth of crude oil imports by countries in the Association of Southeast Asian Nations (Asean).

It added that the initiative was welcomed by leaders at the meeting - including those from the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh and South Korea - and that funding for the project would come from a range of sources.
 
 

 
Japan's interest rates could soon exceed the economic growth rate, and this could, in theory, make it more difficult for the country to contain the national debt and for Prime Minister Sanae Takaichi to aggressively pursue her economic ambitions.
 
Gross domestic product has been growing about 0.5% a year over the past decade and likely grew 1.3% in 2025, according to the OECD.

The Bank of Japan's policy rate is currently 0.75%, and the 10-year Japanese government bond is trading at 2.4%, near a 29-year high.
 
“It wouldn’t be surprising if interest rates naturally rise to around 3% by fiscal 2027,” said Saisuke Sakai, a senior economist at Mizuho Research Institute, which operates under Mizuho Bank.
 
Takaichi wants to make investments needed to boost economic growth, and her agenda is supported by the Liberal Democratic Party's supermajority in the Lower House. 
 
“The Takaichi administration is committed to ending the chronic underinvestment in the future and to shifting away from a mindset of excessive fiscal austerity,” the prime minister has said.
 
To keep the national debt under control, she is counting on an economic theory proposed by American economist Evsey Domar in 1944, which says that when the nominal economic growth rate is greater than the nominal interest rate on government debt, the debt-to-GDP ratio will stabilize.
 

 

The number of foreign visitors to Japan in March was 3,618,900, a 3.5% increase from the same month last year and a new record for March, according to an estimate released by the Japan National Tourism Organization on Wednesday.

Among visitors from East Asia, the number of tourists primarily increased from South Korea and Taiwan, the JNTO said. Southeast Asian visitors increased the most from Vietnam and Malaysia, and among tourists from the Americas and Europe, there was significant growth in visitors from the United States and the United Kingdom.

Tourists from China in March fell by 55.9% year-on-year to 291,600, apparently as a result of Prime Minister Sanae Takaichi’s Diet remark in November last year on a possible Taiwan contingency.

The number of tourists from the Middle East fell by 30.6% to 16,700, partly due to canceled and reduced flights as a result of the U.S.-Israeli attacks on Iran.
 
 

Nissan Motor Co.’s 2027 Elgrand large minivan will enable hands-free driving in urban areas by using AI to assess road conditions and other factors.

Overseas manufacturers, such as Tesla in the U.S., have already made strides with similar technologies. By being one of the first Japanese automakers to introduce this feature, Nissan is aiming for a turnaround in the domestic market, where sales have been sluggish.

Nissan’s proprietary driver-assistance technology, ProPILOT, already provides hands-free driving in some models, but its use is limited to certain environments such as highways.

Through a new collaboration with Wayve Technologies Ltd., a British startup specializing in automotive AI, Nissan will incorporate a system where AI predicts driving conditions, thereby enabling hands-free driving even in urban areas.

Following a full model overhaul this summer, the new technology will be introduced to the Elgrand in fiscal 2027.

With other models, such as Toyota Motor Corp.’s Alphard, gaining market share in the minivan segment, Nissan aims to enhance its competitiveness through proprietary technology.
 
 

 Major Japanese home equipment supplier Cleanup has suspended orders for its popular bathroom units, the latest in a string of companies suffering material shortages as the Iran conflict stretches on.

Tokyo-based Cleanup will stop taking orders from Wednesday, the company announced in a statement on its website.

"Due to escalating tensions in the Middle East, it has become increasingly difficult to procure raw materials,” the company said. It didn’t give an expected resumption date. Shares fell 0.8% to ¥904.

Toclas, a Japanese kitchen and bathrooms systems maker under electronics giant Yamada Holdings, also warned Tuesday that the squeeze on naphtha and other raw materials might prompt shortages or price revisions.

Toilet maker Toto halted bathroom unit orders a day earlier, while the Nikkei reported that Lixil and Panasonic Housing Solutions, also major suppliers, have stopped giving delivery dates for their own products.

Japan gets more than 90% of its crude oil from the Middle East and depends on the area for almost 45% of its naphtha, a feedstock crucial for plastic production, according to government data.
 


 

Isuzu Motors Ltd. will postpone the market launch of its fuel cell-powered heavy-duty truck, which it is co-developing with Honda Motor Co., from the planned 2027 date, it has been learned.

The development of hydrogen refueling stations has not been progressing as planned, and the company also determined that the truck’s fuel cell system needed to be smaller and lighter to increase its carrying capacity.
Sales are likely to begin around 2030.

The two companies signed an agreement in 2020 to conduct joint research toward the practical application of hydrogen-powered fuel cell trucks.

They have been equipping the vehicles with Honda’s fuel cell system and conducting demonstration runs, with plans to start selling large trucks with a maximum load capacity of 10 tons in 2027.

However, progress in developing the hydrogen stations has been slow. In 2021, the Economy, Trade and Industry Ministry set a goal of increasing the number of stations nationwide to around 1,000 by 2030, but currently there are only about 150 stations mainly in Tokyo.

Only about 20 of the stations can accommodate large vehicles. For long-distance travel, 24-hour hydrogen stations are essential, but few exist.

The fuel cell system currently planned for installation is heavy, which limits the truck’s load capacity and makes it unlikely to meet customer demands.

Therefore, the companies seem to consider that further technological innovation is needed to make the cell system smaller and lighter.

Hino Motors, Ltd. has been selling large hydrogen trucks, jointly developed with Toyota Motor Corp., in Tokyo, Aichi Prefecture and other areas since 2025.

Honda expects to post a net loss of up to ¥690 billion for the business year ending March 2026 and has indicated its intention to withdraw a policy of making all new cars electric vehicles or fuel cell vehicles by 2040.

Honda’s current situation, which makes it difficult to invest heavily in the hydrogen business, is also seen as a factor in the postponement of the joint project with Isuzu.
 
 

 

Three major AI industry developments landed simultaneously this week, signaling a global acceleration in AI adoption at both corporate and national levels.

Meta unveiled an AI clone of Mark Zuckerberg, Japan's biggest industrial names formed a domestic AI alliance, and UK regulators convened emergency talks on AI cyber risks.

Each event points to a different frontier of the AI race, from internal enterprise tools to national security to physical robotics.

The convergence of corporate ambition and regulatory urgency reflects how quickly the AI landscape is evolving in 2026.
  Key Takeaways:

• Meta launched the "Muse Spark" model and built an AI clone of Zuckerberg to interact with employees, under the newly formed Meta Superintelligence Labs
• SoftBank, NEC, Sony, and Honda formed "Japan AI Alliance," targeting up to 1 trillion yen (~$6.3B) in NEDO government funding for domestic AI
• Bank of England, UK Treasury, and FCA are in urgent talks with the National Cyber Security Centre about Anthropic's Claude Mythos Preview model

Meta Builds an AI Version of Zuckerberg

Meta released a new model called "Muse Spark" as part of a sweeping overhaul under the newly established Meta Superintelligence Labs. Zuckerberg founded the lab after growing frustrated with Llama's progress relative to competitors at OpenAI and Anthropic, according to the Financial Times.

The AI clone of Zuckerberg is designed to interact directly with company employees on internal platforms. This marks an unusually personal use of generative AI, reflecting Meta's push to make AI tools central to everyday operations.

To accelerate its ambitions, Meta has been aggressively recruiting top AI researchers from OpenAI, Anthropic, and Google. The talent war in foundation model development has intensified sharply across the industry in early 2026.


Japan Forms a Domestic AI Powerhouse

SoftBank, NEC, Sony, and Honda officially formed "Japan AI Alliance," a new company dedicated to domestic AI development. Each founding member holds a stake of more than 10 percent, with Nippon Steel, Kobe Steel, MUFG, SMBC, and Mizuho also joining as investors, according to Benzinga.

SoftBank and NEC will lead the development of AI foundation models, while Sony and Honda will deploy them across automotive, robotics, gaming, and semiconductor applications. The consortium plans to apply for Japan's NEDO funding program, which has earmarked up to 1 trillion yen, approximately $6.3 billion, for domestic AI infrastructure.

A core goal of the alliance is developing "physical AI" capable of autonomously controlling robots. The new company plans to hire around 100 AI engineers and will be led by a SoftBank executive.


UK Regulators Hold Emergency AI Talks

The Bank of England, UK Treasury, and Financial Conduct Authority are in urgent discussions with the National Cyber Security Centre regarding Anthropic's Claude Mythos Preview model.

This follows a high-profile meeting in the United States where Treasury Secretary Scott Bessent and Fed Chair Jerome Powell convened with major bank CEOs to discuss AI-related cyber threats.

The Mythos model is designed to identify and exploit software vulnerabilities and has been deployed in a limited capacity, according to Benzinga. UK banks, insurers, and exchanges are expected to be briefed on the associated cyber risks within the next two weeks.

The urgency of these talks underscores growing concern that advanced AI models pose systemic risks to financial infrastructure. Regulatory bodies across multiple jurisdictions are now treating AI cyber exposure as a top-tier threat warranting immediate coordination.


TSMC Posts Fourth Straight Record Quarter

TSMC reported Q1 2026 revenue of NT$1.13 trillion, equivalent to approximately $35.6 billion, up 35 percent year-over-year.

This marks the company's fourth consecutive record quarter, driven by insatiable demand for AI chips, according to Investing.com.

March alone saw year-over-year revenue growth of 45.2 percent, the strongest single-month figure in recent history.

TSMC has guided gross margins for the current quarter at 63 to 65 percent.

The company forecasts full-year 2026 revenue to grow approximately 30 percent in US dollar terms. Demand from AI chip customers including Nvidia remains the primary growth engine for the world's largest contract chipmaker.
 
 

All possible measures will be taken to ensure a stable supply of heavy oil, said Agriculture, Forestry and Fisheries Minister Norikazu Suzuki on Thursday, seeking to assuage the concerns of green tea producers.

Suzuki made the remarks during a visit to a matcha beverage shop in Tokyo’s Asakusa district, an area popular with foreign tourists. He then spoke with the shop’s operator about expanding matcha exports.

Speaking to reporters after the visit, Suzuki said, “If people gain an appreciation for matcha at the shop, it will generate revenue for all of Japan, including matcha producing regions.”

Thanks in part to the popularity of Japanese cuisine abroad, exports of green tea, including matcha, brought in a record ¥72.1 billion in 2025. The government plans to further expand exports.

However, due to the situation in the Middle East, concerns have been raised among some green tea producers about the availability of heavy oil, which is used for processing, such as when steaming harvested tea leaves, according to the Japan Tea Central Public Interest Incorporated Association.

“It is crucial for sufficient fuel oil to have been supplied when tea production begins,” said Suzuki.
 
 

 

 

Honda Motor Co. said Friday that it will release a new compact electric vehicle model, the Super-ONE, in Japan in late May.

The Super-ONE weighs 1,090 kilograms, "one of the lightest in its class among all passenger EVs available in the Japanese market," the company said. The model was developed based on its N Series minivehicles.

By improving energy efficiency through weight reduction, the vehicle can travel 274 kilometers on a single charge.

The price has not yet been announced. Honda said that it would make the new model affordable with the help of subsidies.

The company believes that the domestic compact EV market has room for growth.
 
 

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

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

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

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

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

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

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

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

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

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