Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] Reuters reports, TSMC is expanding production beyond Taiwan, building fabs in the U.S., Japan, and Europe to reduce geopolitical risk. Neural Newscast
• [New] The interplay between the Japanese government's fiscal policy and the BoJ's monetary policy will remain a key area of observation. FinancialContent
• [New] Higher JGB yields will make Japanese sovereign debt more appealing, and the financial sector could see improved profitability. FinancialContent
• [New] Higher interest rates will directly impact borrowing costs for Japanese households and corporations. FinancialContent
• [New] After Japanese Prime Minister Sanae Takaichi said a Chinese attack on Taiwan could trigger a collective self-defence response, Beijing reacted sharply. Australian Broadcasting Corporation
• [New] Japan pledged to invest a total of $550 billion in US infrastructure of which $332 billion will go into developing domestic energy projects. Beyond Nuclear
• [New] The interplay between Japan's stimulative policies, the ECB's caution, and the Fed's hawkishness creates a unique opportunity for tactical positioning. Ainvest
• [New] PRC-Japan tensions: The PRC has escalated pressure against Japan in response to Japanese Prime Minister Sanae Takaichi saying that a war over Taiwan could threaten Japanese security. American Enterprise Institute - AEI
• [New] In financial markets, mounting fears about the impact of Takaichi's policies on Japan's fiscal health - the worst among Group of Seven economies - have pushed up long-term interest rates. Japan Wire by KYODO NEWS
• [New] GDP growth in Japan begins at negative 0.4% in the fourth quarter of 2025 and increases to 1.8% in the third quarter of 2026. Board of Governors of the Federal Reserve System
• [New] Japanese Defence Minister Shinjiro Koizumi confirmed that Japan will advance plans to deploy medium-range surface-to-air missiles to Yonaguni Island, which is 110 kilometers east of Taiwan. American Enterprise Institute - AEI
• [New] PRC-Japan tensions: The CCP has further escalated against Japan in response to Japanese Prime Minister Takaichi saying that a war over Taiwan could threaten Japanese security. American Enterprise Institute - AEI

Last updated: 06 December 2025