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Summary
Domestic
The Bank of Japan maintained its key interest rate in January, signaling a pause after last year's hike but indicating further increases are likely by summer. Officials are monitoring the weak yen and rising wages as potential inflation drivers. Concurrently, the yen fell to an 18-month low, prompting government 'rate checks' that spurred brief rallies and fueled speculation of potential intervention.
Tokyo's government proposed its largest-ever budget, including a plan to provide 11,000 yen to every child aged 14 and under. Major infrastructure and research developments progressed, with construction advancing on the world's fastest Tokyo-Nagoya train line and the Institute of Science Tokyo gaining recognition as an international research university. In the corporate sector, Toyota saw mixed results: its Corolla Cross received a low safety rating, while its bZ4X electric SUV became Japan's top-selling EV. Toyota also increased its offer to buy Toyota Industries by 15%, as officials stated they would ensure Toyota and Mitsubishi meet tax obligations.
International
Japan faced a significant economic security challenge as China began restricting exports of rare earth minerals, critical for electronics and EVs. In response, Japan is urgently seeking alternative sources, including launching a research ship to explore seabed deposits. To diversify critical mineral supply chains, Japan formed new partnerships with the European Union and Italy.
In a major corporate shift, Sony agreed to spin off its television and audio business into a joint venture controlled by Chinese competitor TCL, which will take over global operations of the Bravia brand. Separately, SoftBank is reportedly in discussions for a massive new investment of up to $30 billion into OpenAI and led a $70 million funding round for an Indian AI startup. In transatlantic trade, Trump imposed new tariffs on eight European nations over their support for Greenland, prompting the EU to consider retaliatory measures worth about 17 trillion yen.
Domestic and International Topics
15 topics | 326 sources
JPTokyo Electric Power Company (TEPCO), the operator of the Fukushima plant, has restarted a reactor at its Kashiwazaki-Kariwa nuclear power plant in Niigata. This is the first time TEPCO has restarted a reactor since the 2011 Fukushima disaster. The restart of the world's largest nuclear plant was briefly paused due to an alert, and one reactor was shut down again hours after restarting. TEPCO's chairman also renewed the company's commitment to decommission the Fukushima plant, as the company faces significant financial losses related to the cleanup.
org:tepcoplace:fukushimaplace:kashiwazaki-kariwa
Jan 30
The Bank of Japan (BOJ) decided to leave its key interest rate unchanged at its January meeting. This pause comes after the central bank raised rates for the first time in years last year, and officials are now assessing the impact of that move. However, the central bank is signaling that more rate hikes are likely in the future. BOJ Governor Kazuo Ueda has vowed to keep raising rates, and discussions in recent policy meetings have focused on long-term interest rates and wage growth. Analysts expect the next rate increase could come by July, with the value of the Japanese yen being a key factor in the decision.
org:bojorg:bank of japantopic:interest rates
Jan 28
CNJapan is looking for new supplies of rare earth minerals after China began restricting exports of these materials to Japan. Reports say China is slowing down or stopping export permits for rare earths, which are crucial for making electronics and electric vehicles. Japan is responding by trying to get these minerals from other places. The country is starting a trial to extract rare earth mud from the deep sea and has agreed to work with Italy and the European Union to secure supplies. Japanese companies are also checking how China's restrictions will affect their businesses.
topic:rare earthstopic:critical mineralstopic:economic security
Jan 14 — Jan 22
Toyota has kept its title as the world's top-selling carmaker, with its sales reaching a record level in 2025. This has highlighted a gap with other Japanese automakers like Honda and Nissan, whose sales have fallen compared to the previous year. Separately, Toyota's popular Corolla Cross model received a two-star safety rating, which raised concerns from the CEO of the AA. In other news, Toyota agreed to increase its offer to buy Toyota Industries by 15%, a move that has turned into a battleground with activist investors pushing for an even higher price.
org:toyotaorg:mitsubishi
Jan 29
JR East train services in Tokyo were disrupted again by a power outage, this time halting the Joban Line. This follows a similar outage the previous Friday, and officials are investigating if there is a common cause. The outage also affected sumo wrestlers traveling to a tournament, forcing organizers to reschedule matches. In other Tokyo news, the city government plans to give 11,000 yen to each resident aged 14 and under as part of its record-breaking budget proposal for the new fiscal year.
org:jrplace:tokyo
Jan 30
Sony is spinning off its television and audio business into a new joint venture with the Chinese electronics giant TCL. Sony will own less than half of the new company, meaning TCL will have the controlling stake. This move ends Sony's direct control over its famous Bravia TV brand, which has been a major part of its business for decades.
org:sonyorg:tcl
Jan 22
The Japanese yen has weakened significantly, hitting its lowest level against the U.S. dollar in 18 months. This has led to widespread speculation that Japanese authorities might step into the currency market to try to prop up the yen's value, with reports of 'rate checks' fueling the rumors. At the same time, the price of gold has surged to record highs, breaking above 5,000 dollars per ounce. The price of silver has also hit a record.
topic:goldtopic:intervention
Jan 29
USPresident Donald Trump has announced new tariffs on eight European nations, citing their support for Greenland. The European Union is reportedly considering retaliatory tariffs worth about 17 trillion yen in response to what it calls a 'threat' over Greenland. In a related development, a major lawsuit challenging the legality of previous Trump-era tariffs is awaiting a potential ruling from the U.S. Supreme Court. If the court rules the tariffs were illegal, it could lead to refunds worth approximately 20 trillion yen.
person:trumptopic:tariffsplace:greenland
Jan 29
The average price of rice in Japan has reached a new record high. This is putting pressure on household budgets, leading to a drop in the price of specific rice brands for the first time in two weeks. In response to high prices, some local governments in Tokyo are considering measures like direct cash payments or gift cards to help residents, rather than specific 'rice vouchers'. At the same time, Japan's private-sector imports of rice have surged dramatically, increasing by 95 times in 2025.
topic:rice
Jan 29
Energy companies Shell and Mitsubishi are exploring options to sell their stakes in the LNG Canada project, a major liquefied natural gas export terminal being built in British Columbia. Separately, Mitsubishi is also starting to import the rare metal gallium from Kazakhstan.
org:mitsubishiorg:shelltopic:lngtopic:galliumplace:canada
Jan 26