Economics
The Japanese bond market is entering a period of renewed volatility as a "perfect storm" of domestic policy shifts and Middle Eastern geopolitical tensions pushes interest rates toward new highs. According to a fresh analysis from Sony Financial Group, the era of low rates is facing its most
Economics
The Bank of Japan’s (BOJ) March Monetary Policy Meeting (MPM) took place against a backdrop of heightened market volatility, and the proceedings underscored the increasing tension between the "look-through" approach to temporary price shocks and the mounting fear of being caught behind the curve as external geopolitical
Economics
Rapidly escalating tensions in the Middle East are sending shockwaves through global energy markets, raising a critical question for Japan's macroeconomic trajectory: Will soaring crude prices choke off the country’s hard-won transition to positive real wage growth? According to a new report from the Itochu Research Institute,
Economics
Following a historic election victory, Japan's ruling party is accelerating discussions to temporarily slash the consumption tax on food to zero. But a new research note by the Itochu Research Institute warns that the highly anticipated policy may fail to deliver meaningful economic stimulus—and will end up
Economics
In an era defined by intensifying geopolitical fragmentation and the relentless march of technological disruption, a nation’s entrepreneurial health is a critical indicator of national resilience and survival. For Japan, the stakes are heightened by a deepening demographic depletion that threatens traditional industrial output. To remain relevant, Japan must
Economics
After a turbulent start to the year marked by a 27-year high in bond yields, the Japanese government bond (JGB) market is beginning to stabilize as investors digest the realities of Prime Minister Sanae Takaichi’s resounding election victory. According to a new report from Sony Financial Group, the market
Economics
According to data provided in the Tokyo Shoko Research (TSR) report for January 2026, Japanese corporate insolvencies began 2026 on a turbulent note. The total number of bankruptcies in January surged to 887 cases, marking a 5.59% year-on-year increase and the highest level for the month since 2013. While
Economics
The International Monetary Fund (IMF) has signaled strong support for the Bank of Japan’s ongoing policy normalization, forecasting a path toward a neutral interest rate of 1.5% by 2027, while simultaneously warning Tokyo against eroding fiscal discipline through broad tax cuts. In a press briefing following the 2026
Economics
Japanese real wages contracted for a fourth consecutive year in 2025, though recent data signals that the country’s prolonged struggle with eroding purchasing power may be nearing an end, according to a recent report published by the Itochu Research Institute. Monthly Labor Survey data released by the Ministry of
Economics
On February 6, 2026, the NLI Research Institute hosted a webinar focused on why home purchases continue to be made despite rising housing prices, interest rates, and inflation. They used various published data on the mortgage market to summarize and explain households' adaptive behavior, incorporating a financial theory perspective.
Economics
The entry of Taiwan Semiconductor Manufacturing Company (TSMC), operating through its subsidiary JASM, is a systemic catalyst for the resurgence of Kyushu’s "Silicon Island." This transition marks a pivot from the region’s historical identity as a domestic manufacturing base toward its emergence as a high-value node
Economics
Japan is facing a severe labor shortage, at least if you believe the headlines. The same headlines that were proclaiming the "2024 Trucker Crisis" due to annual overtime being capped at 960 hours (!), and even before that, announced the "2025 Digital Cliff". Alas, armageddon is not