May 21, 2026

Japan Watch

News Source
EXCERPT:

Core inflation in Japan accelerated for the first time in five months, rising to 1.8% in March as Iran war-fueled higher energy prices stoke consumer inflation.

Government data showed the inflation figure — which strips out prices of fresh food — was in line with the 1.8% expected by economists polled by Reuters, and was higher than the 1.6% seen in February

Headline inflation came in at 1.5%, compared with 1.3% in February, staying below the central bank’s 2% target for a second straight month.

The so-called “core-core” inflation rate, which strips out prices of both food and energy, dipped to 2.4% from February’s 2.5%, marking its lowest level since October 2024.

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EXCERPT:

TOKYO — Japan on Tuesday scrapped a ban on lethal weapons exports, a major change in its postwar pacifist policy as the country seeks to build up its arms industry amid worries over Chinese and North Korean aggression.

The approval by Prime Minister Sanae Takaichi’s Cabinet of the new guideline clears a final set of hurdles for many arms sales, including of a next-generation fighter jet and combat drones.

China criticized the change in policy, but it has been largely welcomed by Japanese defense partners like Australia and attracted interest from Southeast Asia and Europe.

Opponents say the change violates Japan’s pacifist constitution and will increase global tensions and threaten the safety of the Japanese people.

The new policy will “ensure safety for Japan and further contribute to the peace and stability in the region and the international society as the security environment around our country rapidly changes,” Chief Cabinet Secretary Minoru Kihara told reporters. “The government will strategically promote defense equipment transfers to create a security environment that is desirable for Japan and to build up the industrial base that can support fighting resilience.”

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EXCERPT:

On Monday, at 4:53 P.M. local time, a magnitude 7.7 earthquake struck off the northeastern shores of Japan’s largest island, Honshu, where the Pacific tectonic plate plunges beneath the North American plate at the deep-sea Japan Trench. Immediately, the Japan Meteorological Agency (JMA) sent out a tsunami warning alert. Although small tsunami waves did soon reach various sections of the coast, no reports of injuries, deaths, or significant damage to homes or infrastructure were reported.

The danger, however, has not necessarily passed. Following the temblor, a JMA spokesperson told the media and those along the affected shoreline that “the likelihood of a new, huge earthquake occurring is relatively higher than during normal times.” Specifically, there is an elevated risk of a “megaquake”—one of magnitude 8.0 or greater—in the coming days.

The odds of an imminent megaquake are very low—around one in 100. “This 1 percent probability is still low in absolute terms, but it’s 10 times higher than normal, which is significant from a risk management perspective,” says Amilcar Carrera-Cevallos, an independent earthquake scientist.

News Source
EXCERPT:

Japan’s initial budget for defense spending and related costs for fiscal 2026 totaled about 10.6 trillion yen ($66.5 billion), equivalent to roughly 1.9 percent of its 2022 gross domestic product, Defense Minister Shinjiro Koizumi said Friday.

Japan has set a goal of raising defense spending and related costs to 2 percent of GDP by fiscal 2027 in a notable shift from its long-standing practice of keeping defense spending around 1 percent of GDP amid growing security challenges from countries such as China and North Korea.

Using projected GDP for fiscal 2026, the ratio would stand at around 1.5 percent, Koizumi added while speaking to reporters.

Under its three key security documents adopted in late 2022, the Japanese government outlined plans to spend about 43 trillion yen on defense over the five years through 2027.

Blurb:

 

I recently reported that there was a sudden lull in Chinese jet incursions into Taiwan’s airspace, which had a variety of possible explanations.

Whatever inspired the brief break has ended, and the Chinese have returned with quite the display.

The ministry detected 26 Chinese military aircraft around the island on Saturday, with 16 of them entering its northern, central and southwestern Air Defense Identification Zone. Seven naval ships were spotted around the island, it reported.

The increased number of aircraft came after the ministry reported a fall that left analysts scratching their heads about what China’s military may be up to.

Taiwan didn’t report any Chinese military planes that went beyond the median line and entered the zone for a week from Feb. 27 to March 5. After two were detected on March 6, the next four days had none. Such flights resumed in small numbers between Wednesday and Friday.

Blurb:

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

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

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

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

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

Blurb:

U.S. President Donald Trump’s administration said Tuesday that Japan will finance the production of synthetic diamonds and two energy projects worth about $36 billion as the initial tranche of investments under a deal reached last year following months of tariff negotiations.

Trump’s announcement that the three projects had been selected, as part of a $550 billion package that Japan committed to in exchange for his administration reducing tariffs on Japanese cars and other goods, was confirmed hours later by Japanese Prime Minister Sanae Takaichi.

“These projects are so large, and could not be done without one very special word, TARIFFS,” Trump wrote on his Truth Social platform. “America is building again. America is producing again. And America is WINNING again.”

Blurb:

Japanese exports climbed 16.8% year on year in January, sharply beating market expectations and growing at their fastest rate since November 2022 as shipments to Asia and Western Europe surged, government data on Wednesday showed.

Growth was higher than December’s 5.1%, and beat Reuters-polled economists’ estimates of 12%.

Value of exports to China, Japan’s largest trading partner, jumped 32%, after rising 5.6% in December at a time when the two countries are locked in a diplomatic standoff over Prime Minister Sanae Takaichi’s comments over Taiwan.

A new Japan is about to emerge that is sure to frighten China after a landslide victory by Japan’s conservative party leaves leftists with only 5 seats in the parliament. The victory is credited to Japan’s Prime Minister, Sanae Takaichi, who appeared to take a risk by calling for a snap election soon after her party appointed her Prime Minister.

The gamble has paid off, leaving conservatives with a super majority that will most likely alter Japan’s passivist constitution. One of the major changes expected is ending Japan’s self-imposed limitations on military spending and operations. President Trump congratulated the PM, sharing on Truth Social, “Congratulations to Prime Minister Sanae Takaichi and her Coalition on a LANDSLIDE Victory in today’s very important Vote. She is a highly respected and very popular Leader. Sanae’s bold and wise decision to call for an Election paid off big time.”

Japanese stocks surge to record high as PM Takaichi wins landslide election victory – BBC

Excerpt:

The LDP has woken up this morning to a very different reality. This is a party that’s gone from a humbling loss of its majority in 2024 to regaining full legislative control — sweeping parliamentary power back into its hands.

“Landslide victory” says the Yomiuri newspaper front page headline. “LDP Achieves Absolute Stable Majority on Its Own” was the headline splashed across the Asahi’s front page. All of them marked by sweeping red banners at the top of the page, signalling the governing party’s historic result.

It’s worth remembering just how dramatic this turnaround is.

Back in October 2024, Takaichi’s predecessor took a similar gamble — and lost badly. That snap election delivered the LDP’s worst-ever results, costing the party its majority in the House of Representatives, and ultimately costing Ishiba his job.

Hanging over the party at the time was deep public anger: fury at the mishandling of financial scandals, and frustration over the LDP’s links to the controversial Unification Church — all playing out as Japanese households struggled under the weight of rising prices.

Fast forward to February 2026, and many of those issues haven’t gone away. Households are still under pressure. The financial scandals haven’t been properly dealt with. But the LDP has been carried back on a wave of Sanae Takaichi’s popularity.

Blurb:

Diplomatic dispute deepens between Tokyo and Beijing over Taiwan remarks by Japanese Prime Minister Sanae Takaichi.

China will again ban all imports of Japanese seafood as a diplomatic dispute between the two countries escalates, Japanese media report.

Japanese public broadcaster NHK and Kyodo News agency said on Wednesday that the seafood ban follows after China earlier this month lifted import restrictions on Japanese marine products, which were imposed by Beijing in 2023 after the release of treated radioactive water from Japan’s crippled Fukushima nuclear plant into the sea.

Blurb:

A Chinese consul general in Japan threatened to decapitate the nation’s new prime minister over her comments in defense of Taiwan, prompting outrage in Tokyo and underscoring the rising tension between the two regional powers.

Prime Minister Sanae Takaichi, who took office last month, told a parliamentary committee Friday that a Chinese blockade of Taiwan would likely create a “survival-threatening situation” for Japan — one that could compel Tokyo to deploy its Self-Defense Forces in response. The democratically governed island sits just 60 miles from Japanese territory.

Xue Jian, the Chinese consul general in Osaka, fired back in a since-deleted X post on Sunday: “That filthy neck that barged in on its own — I’ve got no choice but to cut it off without a moment’s hesitation. Are you prepared for that?”

Blurb:

Tokyo – Japan’s Defense Ministry sent troops on Wednesday to the northern prefecture of Akita to help contain a surge of bear attacks that have horrified residents in the mountainous region.

Bears have shown up near schools, train stations, supermarkets and even a hot springs resort, with attacks by the animals reported almost daily across Japan, mostly in the north.

Since April, more than 100 people have been injured and at least 12 killed in bear attacks across Japan, according to Environment Ministry statistics at the end of October. That is the highest number of people killed by the animals in the country in one fiscal year since 2006, when the ministry started compiling the statistics.

Blurb:

President Donald Trump revealed during a meeting with Japanese Prime Minister Takaichi Sanae on Monday that he has “always had a great love of Japan,” adding that he also has “great respect” for Japan.

“I have always had a great love of Japan and a great respect of Japan, and I will say that this will be a relationship that will be stronger than ever before, and I look forward to working with you,” Trump said. “On behalf of our country, I want to just let you know, anytime you have any question, any doubt, anything you want, any favors you need, anything I can do to help Japan, we will be there. We are an ally at the strongest level.”

Trump’s visit to Japan comes after Takaichi, who is Japan’s first female prime minister, won a “historic vote.”

Breitbart News’s Simon Kent reported that Takaichi, a conservative, who is “also the first woman to lead the dominant Liberal Democratic Party,” also “opposes same-sex marriage and allowing separate surnames for married couples”:

Blurb:

President Donald Trump and Japanese Prime Minister Sanae Takaichi signed an agreement on Tuesday that will secure a supply of rare earth minerals, a resource that is vital for the manufacturing of computer chips, AI, and everyday technology.

The agreement states that the US and Japan “intend to support the supply of raw and processed critical minerals and rare earths crucial to the domestic industries of the United States and Japan.” The countries “intend to capitalize on their respective existing mining and processing operations in critical minerals and heavy and light rare earths as well as new capacity.”

The countries intend to invest in mining and processing through government and private sector support, streamlining the permitting processes, and the creation of the US-Japan Critical Minerals Supply Security Rapid Response Group, among other points.

Blurb:

Japan’s first female prime minister, Takaichi Sanae, laid out an ambitious conservative agenda after winning her office in a parliamentary vote on Tuesday.

Her nascent administration also signaled a desire to build closer defense ties with the United States.

Much of Takaichi’s agenda lines up with her longstanding political beliefs, as an admirer of global conservative icons like Margaret Thatcher, and a protege of the late Prime Minister Abe Shinzo. She is also being prodded to make policy concessions by her LDP party’s last-minute alliance with the Japan Innovation Party (commonly known as Ishin, which means “renewal”).

Trump hails election of ‘highly respected’ first female prime minister of Japan– www.washingtonexaminer.com
Source Link
Excerpt:

President Donald Trump celebrated the election of the right-wing Sanae Takaichi as the likely next prime minister of Japan.

Takaichi is set to become the first female prime minister of Japan after she won the presidency of the Liberal Democratic Party, which has ruled Japan almost uninterrupted since 1955. Feminists on the left aren’t celebrating, however, as Takaichi has distinguished herself as a hard-line conservative.

Japanese LDP President Sanae Takaichi and President Donald Trump. (AP)

“Japan has just elected its first female Prime Minister, a highly respected person of great wisdom and strength. This is tremendous news for the incredible people of Japan. Congratulations to all!” Trump wrote on Truth Social, signing his name at the end.

Trump’s congratulations are likely more than a simple nicety. Takaichi’s right-wing views are in line with those of her U.S. counterpart. She also boasts one of Trump’s best friends on the international stage as her mentor, the late former Prime Minister Shinzo Abe.

Takaichi is also known for her hard-line views on China, a key priority that plays into Trump’s vision for the Indo-Pacific region. She’s also expressed her opposition to immigration to Japan, one of Trump’s central issues.