Web Desk

ISLAMABAD: Relations between China and Japan have deteriorated dramatically in the past week after Japan issued one of its strongest warnings yet regarding a potential conflict in the Taiwan Strait. China slammed on Monday Japan&#39;s decision to push ahead with a planned deployment of missiles on an island near Taiwan, according to the AFP. Its foreign ministry said Japan&#39;s missile deployment was a &quot;deliberate attempt to create regional tension and provoke military confrontation.&quot; Earlier this month, Japanese Prime Minister Sanae Takaichi had said that any attack on Taiwan could constitute a &ldquo;survival-threatening situation&rdquo; for Japan, a designation under its security laws that could allow limited collective self-defence in support of allies. The statement reflects growing concern in Tokyo over regional stability and the security of sea routes near Okinawa. China condemned the remarks, accusing Japan of interfering in its internal affairs. The Chinese foreign ministry said Tokyo was violating the One-China principle and &ldquo;sending the wrong signal&rdquo; to what it calls &ldquo;separatist forces&rdquo; in Taiwan. Beijing also lodged a diplomatic protest with officials from Japan&rsquo;s Embassy in Beijing. In parallel, China expanded its coast guard and maritime militia presence near the Senkaku Islands, a territory claimed by China but administered by Japan. These patrols have become increasingly regular and assertive, raising tensions in already contested waters. Background: China and Taiwan China and Taiwan have operated under separate governments since 1949, after the Chinese Civil War, when the Nationalist government relocated to Taiwan and the Communist Party founded the People&rsquo;s Republic of China (PRC) on the mainland. The PRC insists that Taiwan is part of &ldquo;one China&rdquo; and maintains that the Beijing government is the sole legitimate representative. Official PRC sources cite UN General Assembly Resolution 2758 to argue that Taiwan has no independent status in the UN system. At the same time, Taiwan maintains its own democratic government, military, and domestic policies. The feud reaches the United Nations&nbsp;China&#39;s permanent representative to the UN, Fu Cong, wrote in a letter to UN Secretary-General Ant&oacute;nio Guterres on Friday that &ldquo;if Japan dares to attempt an armed intervention in the cross-Strait situation, it would be an act of aggression.&rdquo; China maintains that the strait dividing mainland China from self-governing Taiwan is part of its territory. Economic pressure adds to the strainOn November 14, China issued a no-travel advisory for Japan, followed by recommendations that students reconsider enrolling in Japanese universities. Shares in Japanese tourism and retail firms fell sharply after Beijing discouraged its citizens from visiting Japan. Three Chinese airlines offered free cancellations or refunds for flights to Japan scheduled for November 15. China also suspended imports of Japanese seafood. This follows a partial easing earlier in 2025, when China resumed seafood imports from some Japanese regions, subject to strict documentation requirements. Beyond trade and tourism, two Japanese animated films scheduled for release in Chinese theaters were postponed indefinitely. State media reported that the delays were part of Beijing&rsquo;s countermeasures.&nbsp;At a routine press conference this week, He Yongqian, a spokesperson for China&rsquo;s commerce ministry, stated that PM Takaichi&#39;s remarks had &ldquo;severely damaged&rdquo; economic relations between the two nations. Where does Taiwan stand?Taiwan has maintained a measured stance amid escalating tensions while continuing to strengthen its defense posture. Authorities have expanded air and maritime surveillance, conducted regular readiness exercises, and developed missile defence and early warning capabilities. Taiwanese officials say they are closely monitoring regional developments, particularly as Chinese aircraft and ships operate near the island. Taiwan lifts restrictions on JapanAccording to AFP, Taiwan lifted all restrictions on Japanese food imports on Nov. 21&nbsp;in a show of support for Tokyo. Previously, the Taipei government had banned food imports from five Japanese regions around the site of the 2011 Fukushima nuclear accident. Taiwan&#39;s Food and Drug Administration said&nbsp;that &ldquo;Japanese food safety management measures return to normal,&rdquo; effective immediately. What is happening now?Japanese Prime Minister Sanae Takaichi said on Nov. 21 that she wants &ldquo;constructive&rdquo; ties with China and that Japan&rsquo;s stance on Taiwan remains &ldquo;unchanged&rdquo; amid the dispute with Beijing. &ldquo;At the end of last month, President Xi [Jinping] and I confirmed the broad direction of comprehensively advancing our strategic, mutually beneficial relationship and building a constructive and stable relationship,&rdquo; Takaichi told reporters. &ldquo;The government&rsquo;s position remains unchanged&rdquo; on Taiwan, she added. China, however, has signaled a cooling of diplomatic engagement. Premier Li Qiang will not meet one-on-one with Japanese Prime Minister Takaichi on the sidelines of the next G20 Summit, according to China&rsquo;s foreign ministry. &ldquo;A meeting with the Japanese leader is not on Premier Li Qiang&#39;s agenda,&rdquo; Chinese foreign ministry spokeswoman Mao Ning said last week in Beijing at a regular news briefing.

China

Central Asia

China-Japan tensions have escalated after Tokyo warned that an attack on Taiwan could trigger collective self-defence. Beijing responded with diplomatic protests, military activity, and economic pressure; Taiwan has strengthened its defence and backs Japan, as high-level China-Japan diplomacy stalls.

Tensions in East Asia: What exactly is going on?

TOKYO: Japan is set to give the green light this week to restart the world&#39;s biggest nuclear plant, local media reported Wednesday. The resource-poor country pulled the plug on nuclear power after the 2011 Fukushima disaster, but it wants to revive atomic energy and reduce its dependence on imported fossil fuels. The Kashiwazaki-Kariwa nuclear plant is expected to get approval this week from the local governor to resume operations, according to Kyodo News and the Nikkei business daily, citing unnamed sources. Hideyo Hanazumi, governor of central Niigata province, where the plant is located, is expected to hold a news conference on Friday, the reports said. Only one reactor&nbsp;Of the seven reactors at Kashiwazaki-Kariwa, only one will resume functioning. After the 2011 tsunami and meltdown at the Fukushima Daiichi nuclear plant, Japan shut down all of its nuclear reactors, with the public voicing unease about the energy source. A total of 14 reactors -- mostly in western and southern regions -- have since resumed operation after strict safety standards were imposed. This will be the first restart of a nuclear plant for the Fukushima operator, Tepco, after the disaster, if approved. Carbon neutrality by 2050&nbsp;The government has continued to back nuclear power as a reliable, clean energy source. Japan needs to achieve carbon neutrality by 2050. In July, power company Kansai Electric said it was taking an initial step toward building the nation&#39;s first new nuclear reactor since the Fukushima disaster. Japan still faces the daunting task of decommissioning the Fukushima plant, which is expected to take decades. Radioactive debris&nbsp;In August, Japanese technicians sent in remote-controlled robots to one of the damaged reactor buildings as part of preparations to remove radioactive debris. Dangerously high radiation levels mean that removing melted fuel and other debris from the plant is seen as the toughest challenge in the decades-long decommissioning project.

Asia

After the 2011 tsunami and meltdown at the Fukushima Daiichi nuclear plant, Japan shut down all of its nuclear reactors; a total of 14 reactors have since resumed operation after strict safety standards were imposed.

Japan set to restart world’s biggest nuclear plant: reports

TOKYO: Japan&#39;s governing party leader, Sanae Takaichi, is on track to become the country&rsquo;s first female prime minister, after finding a badly needed replacement for a crucial partner that left her Liberal Democratic Party&rsquo;s coalition. Takaichi, 64, would replace Prime Minister Shigeru Ishiba in Tuesday&rsquo;s parliamentary vote. If she&#39;s successful, it would end Japan&#39;s three-month political vacuum and wrangling since the coalition&#39;s loss in the July parliamentary election. The moderate centrist Komeito party split from the LDP after a 26-year-long coalition. The move by Komeito came days after Takaichi&rsquo;s election as president of her party, and it forced her into a desperate search for a replacement to secure votes so that she can become prime minister. The Buddhist-backed Komeito left after raising concerns about her ultraconservative politics and the LDP&rsquo;s lax response to slush fund scandals that led to their consecutive election defeats and loss of majority in both houses. While the leaders of the country&#39;s top three opposition parties failed to unite for a change of government, Takaichi went for a quick fix by teaming up with the most conservative of them: The Osaka-based Ishin no Kai, or Japan Innovation Party. But the long-term stability of their cooperation is an unknown. The two parties are set to sign a coalition agreement on Monday. An eventual Takaichi premiership would be on a cliff edge. The fragile new coalition, still a minority, would need cooperation from other opposition groups to pass any legislation. It would be a risk that could lead to an unstable, short-lived leadership. Big diplomatic tests come within days &mdash; talks with US President Donald Trump and regional summits. At home, she needs to quickly tackle rising prices and compile economic boosting measures to address the frustrated public. Unpopular among womenAn admirer of former UK Prime Minister Margaret Thatcher, Takaichi&#39;s breaking of the glass ceiling makes history in a country whose gender equality ranks poorly internationally. But many women aren&#39;t celebrating, and some see her impending premiership as a setback. &ldquo;The prospect of a first female prime minister doesn&rsquo;t make me happy,&rdquo; sociologist Chizuko Ueno posted on X. Ueno explained that Takaichi&rsquo;s leadership would elevate Japan&rsquo;s gender equality ranking, but &ldquo;that doesn&rsquo;t mean Japanese politics becomes kinder to women.&rdquo; Takaichi, an ultraconservative star of her male-dominated party, is among those who have stonewalled measures for women&rsquo;s advancement. Takaichi supports the imperial family&rsquo;s male-only succession, opposes same-sex marriage and a revision to the civil law allowing separate last names for married couples, so women don&rsquo;t get pressured into abandoning theirs. The prospect for a dual system for last names is fading under Takaichi, Ueno says. &ldquo;Ms. Takaichi&rsquo;s policies are extremely hawkish and I doubt she would consider policies to recognize diversity,&rdquo; said Chiyako Sato, a political commentator and senior writer for the Mainichi newspaper. Rising prices and population declineIf she&#39;s successful in the parliamentary vote, Takaichi would immediately launch her Cabinet on Tuesday and make a policy speech later in the week. A protege of assassinated former Prime Minister Shinzo Abe, Takaichi is expected to emulate his economic and security policies. With a potentially weak grip on power, it&#39;s unknown how much Takaichi would be able to achieve. She would have only a few days to prepare for diplomatic tests &mdash; major regional summits and talks with Trump in between. She has to reassure that there will be stable ties with China and South Korea, which are concerned about her revisionist views on wartime history and past visits to the Yasukuni Shrine. The shrine honors Japan&rsquo;s 2.5 million war dead, including convicted war criminals. Victims of Japanese aggression, especially China and the Koreas, see visits to the shrine as a lack of remorse about Japan&rsquo;s wartime past. Takaichi supports a stronger military, currently undergoing a five-year buildup with the annual defense budget being doubled to 2% of gross domestic product by 2027. Trump is expected to demand that Japan increase its military spending to NATO targets of 5% of GDP, and purchase more US weapons. Takaichi has to follow up on Japan&rsquo;s pledge of $550 billion to Trump&rsquo;s administration as part of a US tariff deal. Her policies focus on short-term measures such as rising prices, salary increase and subsidies, as well as restrictions against a growing foreign population amid a rise of xenophobia. Takaichi hasn&#39;t shown a vision for Japan to address bigger issues like demographic challenges. Takaichi&rsquo;s dilemmaTakaichi&rsquo;s mission is to regain conservative votes by pushing the party further to the right. The LDP&rsquo;s new coalition with the right-wing JIP may fit Takaichi&#39;s views, but experts say that she would have to avoid pushing them and prioritize stability. She needs to balance relations between China and the United States under Trump, while at home she also needs balance to gain support from the opposition camp to achieve anything. &ldquo;She needs to be realistic,&rdquo; says Sato, the commentator. On Friday, Takaichi sent a religious ornament instead of going to the Yasukuni Shrine, apparently to avoid a diplomatic dispute with Beijing and Seoul. To consolidate opposition cooperation and lift her coalition closer to a majority, she has reached out to smaller opposition groups, including the far-right Sanseito. &ldquo;There is no room for Takaichi to show her true colors. All she can do is cooperate per policy,&rdquo; said Masato Kamikubo, a Ritsumeikan University political science professor. &ldquo;It&rsquo;s a pathetic situation.&rdquo; A kingmaker&#39;s influenceTakaichi&rsquo;s election as LDP leader as she seeks the premiership is about power politics by the 85-year-old conservative former Prime Minister Taro Aso, the party&rsquo;s most powerful kingmaker. In her first move as LDP president, Takaichi appointed Aso as the party&#39;s vice president and gave more top jobs to his allies and others who supported her, including Abe allies linked to the funds scandal. Takaichi is expected to appoint them to her Cabinet. Political instabilityPolitical observers expect that a Takaichi government wouldn&#39;t last long. An early election may have to be called later this year, in hopes of regaining a majority in the lower house, though that would be tough. Experts also raise concerns about how Takaichi, a fiscal expansionist, can coordinate economic policies with Ishin&#39;s fiscal conservative views. &ldquo;The era of LDP domination is over and we are entering the era of multiparty politics. The question is how to form a coalition,&rdquo; Sato said, noting a similar trend in Europe. &ldquo;We need to find a Japanese way of forming a coalition and a stable government.&rdquo; About a dozen opposition parties span the spectrum from the Japanese Communist Party on the left to Sanseito and several others on the extreme right. &ldquo;What&rsquo;s going on here right now is what&rsquo;s going on in all our democracies for a lot of complicated reasons,&rdquo; said Gerald Curtis, a Columbia University professor and expert on Japanese politics, citing the mainstream political parties losing popularity, and voters acting on the basis of anger and resentment.

Ultraconservative Sanae Takaichi is poised to become Japan's first female prime minister, forming a fragile coalition amid political instability, rising prices, and diplomatic challenges, though her leadership faces deep public and ideological divides.


Sanae Takaichi likely to win Japan elections

TOKYO: Japan&rsquo;s former Prime Minister Tomiichi Murayama, who was known for his 1995 &ldquo;Murayama statement&rdquo; apologizing to Asian victims of his country&rsquo;s aggression, died on Friday. He was 101. Murayama died at a hospital in his hometown Oita, southwestern Japan, according to a statement by Mizuho Fukushima, the head of Japan&#39;s Social Democratic Party. As head of what was then known as the Japan Socialist Party, Murayama led a coalition government from June 1994 to January 1996. A historic apology for Japan&#39;s actions in World War IIHe is best remembered for the &ldquo;Murayama statement,&rdquo; an apology he issued on the 50th anniversary of Japan&rsquo;s unconditional surrender ending World War II on Aug. 15, 1995. It&#39;s seen as Japan&rsquo;s main expression of remorse for its wartime and colonial past. &ldquo;During a certain period in the not-too-distant past, Japan, following a mistaken national policy, advanced along the road to war ... and, through its colonial rule and aggression, caused tremendous damage and suffering to the people of many countries, particularly to those of Asian nations,&rdquo; he said in the statement. &ldquo;In the hope that no such mistake, be made in the future, I regard, in a spirit of humility, these irrefutable facts of history, and express here once again my feelings of deep remorse and state my heartfelt apology.&rdquo; A government marked by controversyMurayama was first elected to parliament in 1972 as a socialist lawmaker after working for a labor union and serving in a local assembly. When he became prime minister in 1994, he broke with his party&#39;s longtime opposition to the Japan-US security alliance and Japan&#39;s Self-Defense Forces, recognizing them as constitutional in a speech given in the face of yelling by angry members of his party. In 1995, Murayama dealt with two major disasters: a massive earthquake in the western port city of Kobe that killed more than 6,400 people, and a Tokyo subway gas attack that killed 13 and injured more than 6,000 people. He came under fire for slow responses to both. He resigned early the following year in an unexpected announcement that came as he returned to work after the 1996 New Year holidays. Murayama said he had done what he could in a year marking the 50th anniversary of the end of World War II. He said he made the decision while looking at the blue sky in the new year. Murayama criticized his successors for questioning Japan&#39;s wartime guiltMurayama was active in politics even after his retirement in 2000, frequently criticizing attempts by his more nationalist successors to back away from responsibility for Japan&#39;s wartime action. The Murayama statement set a standard followed by all prime ministers for nearly two decades, until nationalist Prime Minister Shinzo Abe stopped apologizing in 2013 as members of his Liberal Democratic Party said it interfered with Japan&rsquo;s national pride. That included Abe protege Sanae Takaichi, who was recently elected party leader and is now poised to become prime minister next week. Murayama also criticized the government&rsquo;s reluctance to acknowledge that the Japanese government during World War II systematically forced Asian women into sexual slavery at military brothels &ldquo;A historical view saying Japan&#39;s war was not aggression, or calling it justice or liberation from colonialism, is absolutely unacceptable not only in China, South Korea or other Asian countries but also in America and Europe,&rdquo; Murayama said in a statement in 2020. He also stressed the importance of Japan establishing a lasting friendship with China, noting the &ldquo;tremendous damage&rdquo; his country caused to its neighbor because of its past war of aggression. &quot;In order to build peace and stability in Asia, we must build stable politics, economics, cultural interactions and development.&quot;

Japanese Prime Minister Tomiichi Murayama 

Tomiichi Murayama led Japan’s coalition government in the mid-1990s and was known for confronting controversial issues, including disaster responses and criticizing revisionist views on Japan’s wartime history.

Former Japanese Prime Minister Murayama, famous for WW2 apology, dies at 101

WASHINGTON: The United States wants Japan to halt Russian energy imports, US. Treasury Secretary Scott Bessent said Wednesday, hours after President Donald Trump announced that India would stop buying oil from Moscow. Bessent said on X that he discussed with visiting Japanese Finance Minister Katsunobu Kato Washington&rsquo;s &ldquo;expectation that Japan stop importing Russian energy.&rdquo;Japan relies heavily on importing oil and gas from abroad. In 2023, Japan spent 582 billion yen ($3.9 billion) importing Russian liquefied natural gas (LNG), according to the latest customs data available. This accounted for 8.9 percent of its total LNG imports. Japanese media in Washington quoted Kato declining to be drawn out on Bessent&rsquo;s comments. &ldquo;I&rsquo;d like to refrain from discussing what other ministers said,&rdquo; Kato was quoted as saying. &ldquo;We are committed to doing what we can to realize a just peace in Ukraine by coordinating with fellow G7 countries,&rdquo; he said. On Wednesday, Trump said that Indian Prime Minister Narendra Modi had promised him New Delhi would stop buying Russian oil. &ldquo;You know, you can&rsquo;t do it immediately. It&rsquo;s a little bit of a process, but the process is going to be over with soon,&rdquo; Trump told reporters. Modi has previously defended buying oil from Russia, a historic partner of India, despite Moscow&rsquo;s invasion of Ukraine. Trump in August raised tariffs on Indian exports to the United States to 50 percent, with Trump&rsquo;s aides accusing India of fueling Russia&rsquo;s war in Ukraine. Bessent said that he and Kato also discussed &ldquo;plans for mobilizing Japan&rsquo;s strategic investment in the United States through the US-Japan trade and investment agreement.&rdquo;

U.S. Treasury Secretary Scott Bessent looks on during a press conference with U.S. Trade Representative Jamieson Greer on the sidelines of the IMF/World Bank annual meetings in Washington, D.C., US., October 15, 2025. (REUTERS/Ken Cedeno)

Business

The United States wants Japan to halt Russian energy imports, US Treasury Secretary Scott Bessent said Wednesday, hours after President Donald Trump announced that India would stop buying oil from Moscow.

US wants Japan to stop buying Russian energy

TOKYO: Japan&#39;s top opposition parties were set to hold high-stakes discussions Tuesday, aiming to find a unified candidate for prime minister and oust the ruling party from power. The talks come after the ruling coalition collapsed last week, putting in peril Sanae Takaichi&#39;s bid to become the country&#39;s first woman premier. Japan was in political limbo over whether the opposition bloc would unite after junior partner Komeito quit its 26-year alliance with the ruling Liberal Democratic Party (LDP). A union would give the opposition group enough votes to name a prime minister and block Takaichi, who was elected as LDP president just over a week ago but needs lawmakers&#39; approval to become premier. Yuichiro Tamaki, president of the Democratic Party for the People (DPP) -- the third largest opposition group in the lower house -- said the secretaries general of three main opposition parties will meet Tuesday evening to explore a possible union. However, he cautioned that their policies diverge significantly in crucial areas, including national defence and the use of nuclear energy. &quot;If we were to join together in a coalition government, alignment on fundamental policies would be essential,&quot; he told a press conference. &quot;If there&#39;s no alignment, the administration will be volatile,&quot; said Tamaki, who said last week he would be willing to stand as prime minister. DPP&#39;s secretary general was also expected to meet with his counterpart from the LDP and its former partner Komeito. The LDP named Takaichi as its new leader earlier this month, seemingly putting her on track to rise to the premiership. Although she could still win if opposition parties disagree on an alternative candidate, Komeito&#39;s exit from the coalition due to a slush fund scandal within the LDP has plunged Japan into a new political crisis. The LDP still occupies over 40 percent of the powerful 465-seat lower house but lacks the majority it needs to name a prime minister on its own. The largest opposition Constitutional Democratic Party of Japan (CDP) has said it was willing to name Tamaki or the leader of another opposition party as the premier in order to kick the LDP out of power. Yoshihiko Noda, head of the CDP, has said that &quot;this is a once-in-a-decade chance for a change of government&quot;.

Japan faces political turmoil as opposition parties meet to unite and block Sanae Takaichi’s premiership after the ruling coalition collapsed, threatening the Liberal Democratic Party’s hold on power amid deep policy divisions.

Japan in political uncertainty as opposition seeks to oust ruling party

LONDON: Stock markets diverged Monday as a deepening political crisis in France sent Paris into a tailspin while a new Japanese ruling party leader buoyed shares in Tokyo.&nbsp;Gold pushed ever closer to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal&#39;s attractiveness.&nbsp;The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu, who had been prime minister for less than a month, resigned just 14 hours after naming a largely unchanged cabinet.&nbsp;France&#39;s &quot;fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit&quot;, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.&nbsp;&quot;With government borrowing running at more than five percent of GDP and the debt ratio rising, the risk premium on French government bonds will continue to widen,&quot; he added.&nbsp;Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed around three percent in afternoon trading.&nbsp;The London and Frankfurt stock exchanges, however, were up in afternoon deals.&nbsp;On Wall Street, both the S&amp;P 500 and tech-heavy Nasdaq Composite sat next to record highs as AI deals overshadowed concerns over a government shutdown that dragged into a second week.&nbsp;Shares in Advanced Micro Devices (AMD) jumped more than 33 percent after the chipmaker announced a multi-year partnership with OpenAI to develop AI data centres which should bring it tens of billions of dollars in new revenue over the next five years.&nbsp;In Asia, Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan&#39;s ruling party will loosen monetary policy to kickstart the economy.&nbsp;Sanae Takaichi, likely to become Japan&#39;s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.&nbsp;The yen weakened more than one percent against the dollar and hit a record low against the euro.&nbsp;Yields on 30-year Japanese bonds rose sharply reflecting fears the country&#39;s already colossal debt will balloon further.&nbsp;After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan&#39;s economy, rural areas and primary industries.

Paris stocks slumped after French PM Sebastien Lecornu resigned, while Tokyo surged on optimism over Japan’s incoming leader Sanae Takaichi. 

Paris stocks drop as French PM resigns, Tokyo soars

<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bangkok: Japan&rsquo;s Nikkei stock index jumped nearly 5% on Monday and the yen weakened after its ruling party chose an ultra-conservative as its leader and likely first woman prime minister. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Other Asian markets also were mostly higher. US futures climbed and oil gained about $1 a barrel. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Liberal Democrats elected Sanae Takaichi, an ally of the late Prime Minister Shinzo Abe, as their leader, likely ensuring she will carry on with his market-friendly policies. Takaichi, 64, admires former British Prime Minister Margaret Thatcher and backed Abe&rsquo;s ultra-conservative vision for the country. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">She is likely to become prime minister because the LDP has the most seats in the lower house, although not a majority. It chooses the prime minister, and opposition groups are splintered. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Takaichi faces a host of challenges that have bedeviled her predecessors, BMI of Fitch Solutions said in a commentary. That includes &ldquo;boosting Japan&rsquo;s economic competitiveness and strengthening the country&rsquo;s technological and industrial base and adopting measures to mitigate the impact of Japan&rsquo;s ageing and declining population amid a colossal public debt burden.&rdquo; <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Still investors, especially non-Japanese ones, were pleased, said Neil Newman, head of strategy at Astris Advisory Japan. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;Obviously investors like what she has been saying and certainly today judging by the number of stocks that moved and which stocks moved, it seems like pretty much led by foreigners so far,&quot; Newman said. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">An unconfirmed report that US President Donald Trump might be considering ways to reduce the cost of his higher tariffs on auto parts and other materials for US manufacturers helped automakers&#39; share prices. Toyota Motor Corp.&#39;s shares jumped 4.9% in Tokyo and Honda Motor Co. gained 4.7%. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Nikkei 225 index rose 4.7% to 47,924.52 by mid-afternoon Monday, while Hong Kong&#39;s Hang Seng index sank 0.6% to 26,976.37. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The yen weakened against the US dollar, on expectations that Takaichi will boost spending, likely adding to inflationary pressures. The dollar rose to 150.31 Japanese yen from 149.33 yen. The euro slipped to $1.1723 from $1.1730. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In Australia, the S&amp;P/ASX 200 shed 0.1% to 8,976.70.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Markets in mainland China, Taiwan and South Korea were closed for holidays. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">On Friday, most US stocks ticked higher, adding to Wall Street records.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The S&amp;P 500 edged up by less than 0.1% to close out its seventh winning week in the last nine, ending at 6,715.79. The Dow Jones Industrial Average climbed 0.5% to 46,758.28. Both added to their all-time highs set the day before. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Nasdaq composite lost an early gain and slipped 0.3% from its own record, to 22,780.51. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Usually, the first Friday of each month has Wall Street transfixed on the monthly jobs update that the US government publishes. It shows how many jobs employers created and destroyed, while also updating the unemployment rate. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">But the shutdown of the US government, now in its third day, delayed the release of that data. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Such information is particularly important now, given how much on Wall Street is riding on the expectation that the job market is continuing to slow by enough to get the Federal Reserve to keep cutting interest rates. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Past shutdowns of the US government have tended not to hurt the economy or stock market much, and the thinking is that this one could be similar, even if President Donald Trump has threatened large-scale firings of federal workers this time around. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Reports came in mixed on activity for US businesses in the health care, real estate and other services industries. One from the Institute for Supply Management said growth is stalling, while another from S&amp;P Global said it&rsquo;s still growing slowly. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In other dealings early Monday, US benchmark crude oil gained 99 cents to $61.87 per barrel. Brent crude, the international standard, added 99 cents to $65.52 per barrel. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A group of countries that are part of the OPEC+ alliance of oil-exporting countries agreed during the weekend to a small boost in oil production, citing a steady global economic outlook. That alleviated fears of an oversupply. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The group said after a virtual meeting on Sunday that it will raise oil production by 137,000 barrels per day in November, the same amount it announced for October. The group has been raising output slightly in a series of boosts all year, after announcing cuts in 2023 and 2024.

People walk by an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, Oct. 6, 2025. (Kyodo News via AP)

Banking

Japan’s Nikkei stock index jumped nearly 5% on Monday and the yen weakened after its ruling party chose an ultra-conservative as its leader and likely first woman prime minister.

Japan’s Nikkei jumps 5% after ruling party elects Takaichi leader

<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">TOKYO: US technology company Nvidia and Fujitsu, a Japanese telecommunications and computer maker, agreed Friday to work together on artificial intelligence to deliver smart robots and a variety of other innovations using Nvidia&#39;s computer chips. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;The AI industrial revolution has already begun. Building the infrastructure to power it is essential in Japan and around the world,&rdquo; Nvidia Chief Executive Jensen Huang said, hugging his Fujitsu counterpart Takahito Tokita on stage. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;Japan can lead the world in AI and robotics,&rdquo; Huang told reporters at a Tokyo hotel. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The companies will work together on building what they called &ldquo;an AI infrastructure,&rdquo; or the system on which the various futuristic AI uses will be based, including health care, manufacturing, the environment, next-generation computing and customer services. The hope is to establish AI infrastructure for Japan by 2030. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">It initially will be tailored for the Japanese market, leveraging Fujitsu&rsquo;s decades-long experience here, but may later expand globally, and will utilize Nvidia&rsquo;s GPUs, or graphics processing units, which are essential for AI, according to both sides. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The two executives did not outline specific projects or give a monetary figure for planned investments. But exploring a collaboration in AI for robots with Yaskawa Electric Corp., a Japanese machinery and robot maker, was noted as a possible example. AI will be constantly evolving and learning, they said.<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Fujitsu and Nvidia have been working together on AI, speeding up manufacturing with digital twins and robotics to tackle aging Japan&rsquo;s labor shortages. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Tokita said the companies were taking a &ldquo;humancentric&rdquo; approach aimed at keeping Japan competitive. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&ldquo;Through our collaboration with Nvidia, we aim to create new, unprecedented technologies and contribute to solving even more serious social issues,&rdquo; said Tokita.

Nvidia Chief Executive Jensen Huang, left, and Fujitsu Chief Executive Takahito Tokita shake hands during an announcement in Tokyo Friday

Artificial Intelligence

US technology company Nvidia and Fujitsu, a Japanese telecommunications and computer maker, agreed Friday to work together on artificial intelligence to deliver smart robots and a variety of other innovations using Nvidia's computer chips.

Nvidia and Fujitsu agree to work together on AI robots

TOKYO: Japan&rsquo;s chief trade negotiator defended a tariffs deal with the US, expressing respect for President Donald Trump and calling him a &ldquo;tough negotiator.&rdquo; Trade envoy Ryosei Akazawa said the pact, which set tariffs on most Japanese exports to the US at 15%, was comparable to a deal between Washington and the European Union. Unlike the EU, Japan did not have to lower its tariffs on US goods, he noted. Japan also committed to investing $550 billion in US projects. Trump had initially set Japan&rsquo;s tariff rate to increase by 25%. Critics in Japan ridiculed Akazawa&rsquo;s repeated trips to the US to work toward a deal as a waste of taxpayer money, saying he should pitch a tent on the White House lawn. Akazawa said talks with US Commerce Secretary Howard Lutnick, Trump and others in his administration were tense at first. By his eighth trip, a rapport had been established, enabling the two sides to reach an agreement by July. &ldquo;President Trump was a tough negotiator, but I kept insisting, and he would listen graciously. I have all the respect for him,&rdquo; he told reporters at the Foreign Correspondents&rsquo; Club of Japan. &ldquo;It was a good round of negotiations.&rdquo; &ldquo;It goes without saying that with any government negotiations, there will always be someone who says Japan lost out, no matter what,&rdquo; Akazawa said. The double-digit tariffs Trump imposed on imports from various nations were a blow to Japan, a key US ally in Asia. Tokyo especially objected to 25% tariffs Trump ordered on imports of steel, aluminum and automobiles. Japan&rsquo;s economy depends heavily on exports. Shipments to the US fell nearly 14% in August compared to a year earlier, the fifth straight month of declines, as auto exports were hit by the tariffs. US tariffs on Japanese automobiles and auto parts are now set at 15%, far higher than the original 2.5%. Japanese automakers also produce many of the vehicles they sell in the US in North America. The friction with the US over tariffs has been an added burden for Prime Minister Shigeru Ishiba&rsquo;s administration. He is due to be replaced as leader of the ruling Liberal Democratic Party later this week. The Liberal Democrats have ruled Japan almost continuously since the 1950s, but they lost their majority in the lower house, which chooses the prime minister, and will need coalition partners. Akazawa brushed off concerns that the US understanding of the deal may differ from Japan&rsquo;s. He said whoever becomes the next prime minister, Japan has an established tradition of respecting agreements, especially those forged with foreign countries.

Japan’s top negotiator on President Donald Trump’s tariffs, Economic and Fiscal Policy Minister Ryosei Akazawa speaks to reporters at the Foreign Correspondents’ Club of Japan

Japan’s chief trade negotiator defended a tariffs deal with the US, expressing respect for President Donald Trump and calling him a “tough negotiator.”

Articles tagged with "Japan"