Japan is unlikely to end its heavy reliance on Middle East crude oil, even as geopolitical tensions expose the risks of depending on the region for more than 90% of its imports, leaving the country to pursue a gradual mix of diversification, electrification, renewable energy and technological innovation.
Tokyo stocks rebounded on July 27, with the Nikkei 225 closing at 64,931.19, up 320.04 points, or 0.50%, as easing concern over the Middle East conflict supported broad buying across domestic-demand and value shares, although semiconductor weakness continued to cap the market’s recovery.
Honda Motor and Nissan Motor have entered final-stage negotiations to jointly develop an operating system that will serve as the core software for their next-generation vehicles, with an agreement targeted by the end of August.
Japanese investors may be starting to redirect money from semiconductor and memory-related stocks toward automakers and other value shares, as concerns grow that soaring memory prices, increased Chinese production and the search for cheaper suppliers could weaken the technology rally.
Japanese business leaders voiced concern over new additional tariffs imposed by the administration of U.S. President Donald Trump, warning that the measures could damage global manufacturing and undermine free trade.
Buying car insurance can already feel complicated without also worrying about whether you have the “right” payment method.
Tokyo stocks fell sharply on July 24, with the Nikkei 225 closing at 64,611.15, down 2.73%, as renewed concern over the cost of artificial intelligence investment triggered another technology selloff while oil above $100 a barrel and a yen near 40-year lows intensified fears of imported inflation.
A government panel discussing Japan's minimum wage for fiscal 2026 ended its latest meeting on July 23 without an agreement between labor and management, pushing a decision back until its next session.