Japan’s growth prospects remain positive, at least in the short term

Jul 01 (think.ing) - Today's numerous data releases, from inflation to labour to business surveys, suggest a positive outlook for Japan in the near term. The overall picture is still mixed and the figures aren't good enough to change the central bank's current stance

Japan's jobless rate unexpectedly rose to 2.6% in May (vs 2.5% market consensus), but that's the first rise in four months. However, the labour participation rate hit an all-time high at 62.7% and the jobs-to-application ratio improved for three consecutive months, which indicates labour tightening going ahead. Although no signs of wage growth have been detected yet, the reopening of the economy and the better Covid situation have improved overall labour market conditions.

Tokyo CPI decelerate to 2.3%YoY in June (vs. 2.5% market consensus) from 2.4% in May, but core CPI, excluding fresh food, rose 2.1% YoY in June (vs 1.9% in May). Energy prices remained high at 21.7% but a bit down from the previous month’s 22.3%. We think government subsides curbed additional price gains in gasoline and diesel. But, manufactured food prices are scheduled to rise in the coming months, thus near-term CPI will stay above 2% for a while.

The Tankan survey results were a bit disappointing as the outcomes missed the market consensus. However, large companies hold more optimistic views on the future outlook, certainly for non-manufacturing companies. The survey's large non-manufacturing outlook rose to 13 (vs 7 in the first quarter) while the manufacturing outlook made a mere 1 point rise to 10 (vs 9 in the first quarter).

Record 12 Killed in Bear Attacks Across Japan

Bear attacks are reaching unprecedented levels across Japan, with a record 12 fatalities so far this year as sightings continue daily from mountain towns to city centers, disrupting schools and local institutions.

Hachiko Statue Sealed Off Ahead of Halloween in Shibuya

Tokyo’s Shibuya Ward has installed barricades around the Hachiko statue in front of Shibuya Station as part of safety measures ahead of Halloween on October 31st.

Japan to Introduce Free High School Education Next Year

The Liberal Democratic Party, Nippon Ishin no Kai, and Komeito have reached an agreement on the framework for Japan’s new free high school tuition program, which will begin in fiscal 2026. Under the plan, tuition support for private full-time high schools will be capped at 457,000 yen, while correspondence courses will have an upper limit of 337,000 yen.

Sense of Crisis in World Heritage Shirakawa Village: ‘Never a Year with So Many Bears Before’

Bear sightings have surged across Japan, and in Gifu Prefecture’s Shirakawa Village—home to the UNESCO World Heritage site of Shirakawa-go—local authorities held a nighttime drill on October 28th to prepare for possible emergencies.

Japan Mobility Show Opens, Toyota Unveils Century Coupe

The Japan Mobility Show opened on October 29th, marking the start of Japan’s premier automotive exhibition, where foreign manufacturers are stepping up their entry into the country’s growing electric vehicle (EV) market.

MEDIA CHANNELS

MORE Business NEWS

Chinese Paper Companies Surge in Osaka Ahead of Visa Tightening

In a quiet neighborhood of Osaka stands a four-story building with around 40 rooms. Yet more than 100 companies are registered there, despite the absence of any visible workers.

UK Buyers Captivated by Yame Tea

Two tea buyers from London arrived in Fukuoka on October 28th to explore the unique appeal of Yame tea, one of Japan’s most celebrated green teas. The visit, organized by Fukuoka Prefecture as part of efforts to expand agricultural exports, aimed to introduce the rich aroma and depth of Yame tea to the United Kingdom, a nation long associated with black tea culture.

Japan Mobility Show Opens, Toyota Unveils Century Coupe

Nikkei Closes Above 50,000 for the First Time Ever

The Nikkei Stock Average closed at 50,512 yen on October 27th, surpassing the 50,000 mark for the first time in history and setting a new all-time high. The benchmark index rose 1,212 yen from the previous trading day, driven by strong gains across sectors.

McDonald's Japan to End Paper Straws

McDonald's Japan announced it will phase out the use of paper straws and introduce new lids that allow customers to drink directly from the cup without a straw starting on November 19th.

'50-Year' Home Loans Surge as Construction Costs Rise

More homebuyers in Japan are turning to ultra-long housing loans, with some mortgages now stretching as long as 50 years as buyers try to keep monthly payments down in the face of sharply higher construction costs.

Kumamoto Expands Chip Production as TSMC Plans Second New Plant

A subsidiary of Taiwan Semiconductor Manufacturing Co. (TSMC), a leading chipmaker, signed a location agreement with Kikuyo Town in Kumamoto Prefecture on October 24th for the construction of its second factory in Japan.

Toyota Unveils Vision for Future Mobility

As anticipation builds for the Japan Mobility Show 2025, set to open at Tokyo Big Sight from October 30th to November 9th, Toyota Chairman Akio Toyoda has announced a sweeping reorganization of the automaker’s brand strategy. The company will redefine its group structure, including Daihatsu, into five distinct brands, with its flagship luxury car, the Century, becoming a fully independent marque.

< 2 3 4 5 >