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] In Japan's case, it has the potential of easing inflation as the yen's low value versus other major currencies, like the US dollar and the euro, has pushed up the cost of imports, which in turn has helped to fuel inflation. BBC News
• [New] In Asia, demand for LNG is projected to rise as countries like China, Japan, and South Korea seek cleaner alternatives to coal. Domestic Drilling and Operating
• [New] Although certification of the 777 X by the Federal Aviation Administration is still pending, its approval is expected to catalyze a significant rebound in wide-body output, complementing the upward trajectory of 787 production. / Japan rebecca.gladen@trade.gov
• [New] Japan now faces surging bond yields that will likely keep rising unless the Bank of Japan restarts yield curve control or ramps up quantitative easing, both of which risk further yen weakness. Flash Fixed Income: Five striking charts from 2025 | Tw
• [New] The Bank of Japan is widely expected to raise interest rates on Friday, giving the yen an advantage over a dollar that could lose support if expected U.S. rate cuts emerge early 2026. CNBC
• [New] With artificial intelligence data centers projected to consume as much electricity as the entire nation of Japan, governments around the world are turning to nuclear energy to power their economies. Yahoo Finance
• [New] The Bank of Japan (BOJ) is widely expected to raise the policy rate 25 bps to 0.75%. Brown Brothers Harriman
• [New] Nations like Japan, South Korea, Australia, Philippines and other smaller Pacific nations will look towards each other for security. Ben Morgan's Substack
• [New] Japan has set a national goal to increase the number of diplomatic personnel from 6,674 in 2024 to 8,000 by 2030, with an emphasis on regional experts and longer-term geographic assignments. The Yale Review of International Studies
• [New] AST SpaceMobile is accelerating its production and operations, and by the end of 2026, the space telecommunications firm plans on having between 45 and 60 BlueBird satellites in LEO servicing the United States, Europe, and Japan. investing.com
• [New] Japan will be pushed to align its defence-industrial standards more closely with the US to enable seamless joint production, sustainment, and long-term defence industrial and technology cooperation with the US, particularly in semiconductors and critical minerals. OBSERVER RESEARCH FOUNDATION ( ORF )
• [New] Prime Minister Sanae Takaichi's large spending plans added to worries over Japan's fiscal health, while expectations of a Bank of Japan rate hike this month further clouded the economic outlook. Trading Economics
• [New] Japan is projected to record 190 million 5G connections, supported by ongoing investments in advanced network upgrades and industrial digitalization. Electro IQ
• [New] ASIA: Asia will see mostly near-normal to cooler temperatures over the next 15 days, with mixed conditions in China and Japan. ADM Investor Services
• [New] A strengthened Regional Comprehensive Economic Partnership, which includes ASEAN alongside Australia, China, Japan, New Zealand and South Korea, could boost ASEAN's economic growth by 1.9% and employment by 2.1% amid global tariff tensions. East Asia Forum
• [New] Japan's new Sanaenomics measures, named after Prime Minister Sanae Takaichi, are likely to boost growth and stabilise inflation in 2026. ING Think
• [New] Japanese equities are expected to continue receiving support as certain sectors remain linked to the global AI trend in 2026. EMEA
• [New] In Japan, headline and core inflation have been above target for the past couple of quarters, but the underlying trend has been weaker, prompting a forecast for inflation to edge below 2% in late 2026 and then rise back to policymakers' 2% target in 2027. Morgan Stanley
• [New] Global electricity demand from data centers is now forecast by the IEA to double by 2026, reaching more than 1,000 TWh; nearly the annual demand of Japan. JD Supra
• [New] In terms of nation state threats: China's cyber operations focused regionally on targets in Taiwan, Japan, and Hong Kong, especially anything related to semiconductor tech or political intelligence. DeepStrike
• [New] We expect Japan's transportation and logistics output to grow by 1.4% in 2025 and by 0.4% in 2026. atradius
• [New] In a notable contrast, the Bank of Japan (BoJ) is anticipated to hike rates by 25 bps to 0.75%, moving away from its long-standing zero-rate policies amid signs of wage growth and domestic inflationary pressures. FinancialContent

Last updated: 20 December 2025