Japan's Public Pension Fund Marks Sixth Straight Year of Gains

Japan is seeking to turn economic security into diplomatic leverage as the United States deepens its America First approach, with policymakers focusing on semiconductors, critical minerals, energy, shipbuilding and advanced technology as areas where Japan can make itself indispensable to Washington.

Japan's Government Pension Investment Fund said its investment operations for fiscal 2025 generated a surplus of more than 41 trillion yen, lifted by gains in domestic and overseas stock markets.

Gold prices remain under pressure after spot bullion briefly fell below 4,000 dollars per troy ounce last week, marking the lowest level in seven months since early November, as investors reassess the outlook for US interest rates and the dollar.

Workers inspecting screws are a familiar sight in Tokyo’s Ota Ward, where small factories line the streets, but manufacturers say rising costs are squeezing operations despite signs of strength elsewhere in the economy.

Business expansion creates pressure on finance teams before it creates visible growth.

Tokyo stocks staged a sharp intraday reversal on July 3, with the Nikkei 225 rebounding from an early drop of more than 1,100 points to close more than 1,000 points higher as investors bought back semiconductor and AI-related shares while rotating into lagging value stocks.

Japan’s long-term interest rate, which affects fixed-rate housing loans and other borrowing costs, climbed to its highest level in about 30 years as concerns grew over the fiscal outlook under the Takaichi administration.

Tokyo stocks fell sharply on July 2 as a global reversal in semiconductor and AI-related shares dragged the Nikkei 225 below 70,000, while the broader TOPIX held firm as investors rotated into banks, software, airlines, trading houses and other lagging value shares.