Thread: Japan Election

Record 26.2 million people vote early in Upper House poll

The number of people who cast their ballots under the early voting system ahead of Sunday's election for the House of Councilors came in at 26,181,865, a record high for any national poll in the country, the internal affairs ministry said.

The figure, which was up by 6,568,390 voters from the previous Upper House election in 2022, accounted for 25.12% of all eligible voters.

The increase in early voting apparently came since the election was scheduled for the second day of a three-day weekend.

The number of early voters rose in all 47 prefectures, with Miyazaki logging the biggest increase at 49.43%. Kumamoto followed, with a climb of 44.59%, and Kochi with 43.31%.

Sunday's voter turnout stood at 22.42% as of 4 p.m., down 0.57 percentage points from the 2022 election.

their bond prices will be waiting on the election

^I don’t think much will change.

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Shigeru Ishiba vows to stay on as Japanese PM after election setback

Japanese Prime Minister Shigeru Ishiba has vowed to stay on despite exit polls showing his ruling coalition is likely to lose power in the country's upper house.

Exit polls and early returns show the alliance between Mr Ishiba's Liberal Democratic Party and coalition partner Komeito on course for the worst result since it was founded in 1999.

That comes on top of its worst showing in 15 years in October's lower house election, a vote that has left Mr Ishiba's grip on power vulnerable to no-confidence motions and calls from within his own party for leadership change.

Speaking two hours after polls closed to public broadcaster NHK, Mr Ishiba said he "solemnly" accepted the "harsh result".

"It's a difficult situation, and we have to take it very humbly and seriously," he said.

Asked whether he intended to stay on as prime minister and party leader, he said "that's right".

The result also comes as Japan, the world's fourth-largest economy, faces a deadline of August 1 to strike a trade deal with the United States or face punishing tariffs in its largest export market.

"We are engaged in extremely critical tariff negotiations with the United States … we must never ruin these negotiations," Mr Ishiba told TV Tokyo later on Sunday night.

"It is only natural to devote our complete dedication and energy to realising our national interests."

Far-right Sanseito party surges

The main opposition Constitutional Democratic Party is projected to win 18 to 30 seats, from 22 held previously, NHK's exit poll showed.

The far-right Sanseito party, birthed on YouTube a few years ago, has been the surprise package with its "Japanese First" campaign and warnings about a "silent invasion" of foreigners.

It is forecast to win 10-15 seats in the chamber, up from one held previously, yet it holds only three seats in the lower house.

Sanseito, which first emerged during the COVID-19 pandemic spreading conspiracy theories about vaccinations and a cabal of global elites, has dragged once-fringe political rhetoric into the mainstream and gained wider support among frustrated voters.

It remains to be seen whether the party can follow the path of other far-right parties with which it has drawn comparisons, such as Germany's AFD and Reform UK.

Japan's oppositional parties advocating for tax cuts and welfare spending have struck a chord with voters, the exit polls showed.

Rising consumer prices — particularly a jump in the cost of rice — have sowed frustration at the government's response.

Both the yen and JGBs have been under pressure leading up to this weekend’s vote, and early polling suggests those concerns may be justified.

Rates on 10-, 30-, and 40-year JGBs surged notably this past week, and the election results could provide the market with additional motivation to push yields even higher. The 10-year JGB briefly touched 1.6% last week, surpassing its previous peak from March

You can add rising rates in Japan to the growing list of reasons why long-end rates in the US are likely to move higher. If Japanese yields rise further following the election results, either US Treasury rates will increase in tandem, or the spread between Treasuries and JGBs will narrow, bringing the yen carry trade back into the spotlight. Currently, the spread between the US 10-year Treasury and the JGB is around 2.9%, just above the critical support level near 2.85%, which has played a key role over the past few years.

The USDJPY has recently diverged somewhat from the 10-year yield spread, likely reflecting market anxiety about Japan’s deteriorating fiscal situation. This concern has intensified amid rising rates, elevated inflation, new tariffs, and now election results that could trigger increased government spending.

This dynamic will add further pressure to the long end of the US yield curve, especially following last week’s breakout of 5-year CPI swaps from a two-year trading range. If this trend continues, it will become increasingly difficult for US rates not to rise, as the market would clearly be signaling expectations for higher inflation ahead.

This scenario is likely to steepen the yield curve further, as indicated by the 10/2 spread, which has been consolidating for months and now appears to have formed a bull flag pattern. Considering the current market backdrop, the most probable outcome is a yield curve steepening driven by rising 10-year rates pulling away from the 2-year.

So, while Japan’s election results might seem distant and unrelated to US markets, we must remember that global financial systems are deeply interconnected—what happens in Japan’s bond markets can significantly impact US markets. We’ll gain clearer insight into these potential effects when trading opens in Japan

today will bring enlightenment

More will be known towards the end of the week.

Japan’s bond market is breaking down as yields and volatility surge to multi-decade highs

Japan’s government bond market is spinning out of control, and it’s dragging America into the mess. Volatility across Japanese government bonds has doubled in just five months, hitting a record 4.02%, according to data from CNBC.

Yields have shot up fast—the 30-year yield is now 3.08%, nearly 75 basis points higher than it was earlier this year, and just a hair away from its record since that bond was first issued in 1999.

The 10-year yield briefly touched 1.60% last week, a number the world hasn’t seen since the 2008 financial crisis. At the same time, chatter is building about a possible credit rating downgrade, something that would hammer Japan’s already fragile economy.

These numbers aren’t just scary on paper. They show that the entire Japanese bond market, the third-largest on the planet, is under stress like it hasn’t seen in decades. The 30-year Japanese Government Bond recently went above 3.2%, which has never happened before.

Snip

Japan dumps treasuries as the Fed faces pressure

Japan isn’t some fringe player here, folks. It’s the largest foreign holder of U.S. Treasuries, with over $1.13 trillion parked in American debt. For decades, Japanese banks and pension funds have been reliable buyers of U.S. bonds, keeping American borrowing costs low.

But with yields climbing at home and the yen in freefall, Japanese investors are being pushed to pull their money back. The logic is simple; why buy Treasuries and take a currency hit when local bonds suddenly pay more? Get it?

This is dangerous for the United States. Fewer Japanese buyers mean less demand for Treasuries, especially the long-term ones that fund the government’s bloated spending plans. Without that demand, yields will rise, and that makes it more expensive for the U.S. to borrow. It also adds chaos to global bond markets as investors scramble to adjust to the sudden change in capital flows.

Donald Trump just got back in the Oval, and Washington is already trying to juggle rising debt and inflation.

Meanwhile, Modern Monetary Theory (the idea that countries can print money forever without paying a price) is falling apart too. The Bank of Japan is showing the world what happens when investors stop believing. The Federal Reserve can’t rely on infinite bond buying anymore, not without risking inflation, a weaker dollar, and total loss of trust.

Tokyo's Nikkei leads Asian rally after Japan-US trade deal

Tokyo stocks rallied with the yen Wednesday after Japan and the United States finally hammered out a trade deal to slash Donald Trump's tariffs, including those on the crucial car sector.

Investors were also cheered by news that Washington had reached agreements with Indonesia and the Philippines, stoking optimism that other countries will achieve deals to avoid the worst of the US president's levies.

Despite a lack of deals being made leading up to Trump's self-imposed August 1 cut-off date, equity markets have been on the march in recent weeks on optimism that governments will eventually get over the line.

Japan had been one of those yet to sign, despite a string of trips to Washington by trade envoy Ryosei Akazawa, dampening investor sentiment in Tokyo.

But Trump said Tuesday that officials had agreed to a "massive" deal that would include a 15 percent tariff on imports from Japan, down from the previously threatened 25 percent.

The pact also saw the 25 percent levy on autos -- a major export to the United States -- slashed to 15 percent.

"We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform.

"Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits."

He did not provide further details on the investment plan, but claimed the deal "will create Hundreds of Thousands of Jobs."

Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting.

Akazawa wrote on X: "Mission accomplished."

Traders poured back into the market, pushing the Nikkei up more than two percent thanks to soaring automakers.

Tokyo and Mitsubishi rocketed around 12 percent and Nissan jumped more than nine percent.

The yen strengthened to 146.20 per dollar -- compared with close to 148 Tuesday. The unit had already enjoyed a recent tick-up after Ishiba vowed to remain in office despite a devastating weekend election loss.

Trump also hailed an agreement with Manila that will see the toll on Philippine goods lowered by one percentage point to 19 percent, while tariffs on Indonesia were slashed from 32 percent to 19 percent.

Shares in Manila and Jakarta rose.

The announcements boosted hopes that other deals could be in the pipeline before next Friday's deadline, though talks with the European Union and South Korea remain elusive for now.

Still, US Treasury Secretary Scott Bessent said he would meet his Chinese counterparts in Stockholm next week for talks, as a separate mid-August deadline approaches for US levies on Beijing to snap back to steeper levels.

Elsewhere in Asia, Hong Kong built on its 2025 surge to hit its highest level since late 2021, while Shanghai, Sydney, Singapore and Taipei were also well up. Seoul was flat and Wellington dipped.

The advances came after a broadly positive day on Wall Street where the S&P 500 hit another peak but the Nasdaq snapped a six-day streak of records.

Eyes are also on the release of earnings from Google parent Alphabet and other tech giants including Tesla and Intel.


https://www.france24.com/en/live-new...-us-trade-deal

TACO

Factbox-Who could replace Japan's Ishiba as leader of the ruling party?

-Japan's Prime Minister Shigeru Ishiba plans to announce his resignation by the end of next month, media said on Wednesday, following a bruising defeat in an upper house election.

That step would trigger a leadership race in his Liberal Democratic Party (LDP), whose winner would face a vote for prime minister in the lower house of parliament.

But the party and junior coalition partner Komeito lack a majority in the chamber, which could complicate the selection.

Here are the LDP lawmakers who might throw their hats in the ring:

SANAE TAKAICHI, 64:

A Yomiuri newspaper poll following Sunday's election showed Takaichi as the top pick for prime minister in an LDP-led government, with 26% of votes, followed by farm minister Shinjiro Koizumi, at 22%.

Representing the party's right wing, she lost to Ishiba in the September leadership race in a run-off vote. Takaichi previously served as Japan's economic security minister, internal affairs minister and the LDP's policy council chief.

She is known for her conservative views, such as revising the pacifist constitution, and is a regular visitor to the Yasukuni war shrine, viewed by some Asian neighbours as a symbol of past militarism.

She also opposes allowing women to retain their maiden names, saying it would undermine tradition.

Takaichi courted controversy in 2016 when she suggested the government could revoke broadcasting licences of media companies deemed to be politically biased.

SHINJIRO KOIZUMI, 44:

The son of a former prime minister and heir to a political dynasty with a hand in governing Japan for more than a century, he would become its youngest prime minister in eight decades if he succeeded Ishiba.

Koizumi also ran in the last party leadership race, presenting himself as a reformer able to restore public trust in a party mired in scandal.

Unlike Takaichi, who left government after her defeat in that contest, the Columbia University-educated Koizumi stayed close to Ishiba as his agriculture minister, overseeing the release of rice stockpiles in a bid to curb soaring prices of the staple.

TOSHIMITSU MOTEGI, 69:

A former foreign minister, Motegi has a reputation as a tough negotiator and handled talks with U.S. Trade Representative Robert Lighthizer when President Donald Trump was last in office.

He has also served as trade minister, economy minister and the party's secretary general.

He studied at the Harvard Kennedy School and worked at the Yomiuri newspaper and consulting firm McKinsey before entering politics in 1993.

Other potential candidates include Chief Cabinet Secretary Yoshimasa Hayashi, 64, and Finance Minister Katsunobu Kato, 69.

Bloomberg reports details of Japan-US trade deal

Bloomberg has reported the details of a trade deal struck between Japan and the United States.

The US media outlet reported on Wednesday the agreement announced by US President Donald Trump the previous day.

Bloomberg quoted a senior US administration official as saying Japan's "pledge" to invest 550 billion dollars in the United States is "akin to a sovereign wealth fund under which Trump himself could steer investments inside the US."

The outlet reported that, according to the official, legal particulars and other details surrounding the pledge are still being hammered out.

Bloomberg also said Japan reportedly agreed to buy 100 Boeing aircraft, boost rice purchases by 75 percent and buy 8 billion dollars in agricultural and other products while hiking defense spending with US firms to 17 billion dollars annually, from 14 billion dollars.

Police detect 889 threatening posts ahead of Upper House poll

Police confirmed a total of 889 menacing online posts, including those threatening attacks on sites of campaign speeches, in the run-up to Sunday's election for the House of Councilors, the upper parliamentary chamber, the National Police Agency said Thursday in a report on security measures for the poll.

The report also showed that 140 cutting tools, such as box cutters and scissors, were found through baggage screenings and metal detector checks conducted at almost all speech venues. But all the tools were for work and study, and no one was arrested.

In response to a series of attacks by so-called lone offenders in recent years, including the fatal shooting of former Prime Minister Shinzo Abe, which occurred while he was giving a stump speech in 2022, the NPA set up the first-ever center for integrating threat information regarding such offenders ahead of the Upper House election. Lone offenders carry out terrorist attacks without belonging to groups based on political ideology or religious beliefs.

The center took charge of analyzing posts on social media or online bulletin boards as well as information about suspicious persons, with the aim of preventing crimes and reinforcing security.

The NPA confirmed the 889 threatening posts through cyber patrol and also thanks to reports from the public between June 16 and Saturday.

The agency then took countermeasures according to the urgency of each case. For example, a man in his 40s from Chiba Prefecture was identified after repeatedly posting on July 13 at former Prime Minister Fumio Kishida's official account on X, formerly Twitter, that he would be killed if he came to deliver a speech, and the Chiba prefectural police contacted the man on the same day.

"Although it turned out that there was no case with a realistic threat, sharing information helped us to take effective countermeasures," an NPA official said. The agency plans to take similar steps for future elections.

Security operations were conducted for around 900 events ahead of the Upper House poll, including speech meetings, half of which were held indoors due to the intense heat or at the request of police.

Ahead of last year's election for the House of Representatives, the lower chamber, some 30 dangerous items were discovered through security checks. The number increased this time as inspections have become well established, and the efficiency of the organizers has improved, the agency official said.

Ishiba instructs ministers to steadily implement Japan-US trade deal

Japan's Prime Minister Ishiba Shigeru has instructed his Cabinet ministers to steadily implement the trade deal recently reached between Japan and the United States and to take steps to ease any negative impact on domestic industries and employment.

The government held a task force meeting on the matter, comprising all Cabinet ministers, on Friday.

Ishiba stressed the significance of the agreement. He said that since proposing to US President Donald Trump that investment should take precedence over tariffs, he consistently pursued that approach. He pointed out that as a result, they were able to reach a deal that protects Japan's key interests while also benefitting both parties.

He said going forward, it is crucial for Japan and the US to steadily implement the deal and produce early results that promote mutual benefit. He urged that the functions of the task force be strengthened toward that goal.

Ishiba also called for a thorough analysis of the possible impact on domestic industries. He instructed that special consultation counters be set up nationwide to provide information on item-specific tariff rates. He added that financing advice be made available as part of efforts to ease the impact on businesses and employment.

Ishiba said he is grateful beyond words to chief tariff negotiator Akazawa Ryosei for visiting the US for eight times for the talks. He also expressed appreciation to all government agencies for their efforts in concluding the agreement. He asked the Cabinet ministers to thank members of their own ministries and agencies, and called on them to continue working together for the sake of Japan, its people and the world.

Japan investors brace for BOJ and earnings results after Trump-fueled rally

Japan’s surprise trade deal with the U.S. sent its markets on a wild ride, pushing stocks to all-time highs and fueling a selloff in government bonds.

Automakers’ shares led a market-wide surge after U.S. President Donald Trump announced the deal on Wednesday. The broad Topix index hit a record close. Investors, finally having some good news, seemed to largely ignore thorny questions about the details of the trade deal, let alone the tenuous position of Prime Minister Shigeru Ishiba following a recent election setback.

But as the dust settles and focus returns to problems closer to home, investors are questioning whether the rally was a sign of things to come — or just a blip for a market that is facing multiple sources of volatility in the coming weeks and months.

"The deal came and there was this immense relief, and now markets are saying: ‘hang on, not too much,'” said Vishnu Varathan, head of economics and strategy at Mizuho Bank. "It’s a relief that we didn’t bleed to death. But we are still in triage, if not the ICU.”

The headache for investors in Japan is that almost every piece of good news comes with a caveat. The trade deal was a clear win, but the 15% tariffs facing Japanese companies are still well above their level at the start of the year. The economy may get a boost, but that could in turn speed up interest rate hikes. The deal removes one reason for Ishiba to cling to power — since he had made clear he wanted to get it done while in office — but the win means he now has a better case for hanging on.

That has shifted attention to some major events in the coming days, which will offer clues to the direction of travel for a stock market that has underperformed its regional peers this year.

The Bank of Japan’s monetary policy announcement on Thursday, although unlikely to result in a rate change, will be scrutinized for hints that the central bank may hike as early as September. That could hit both bond and stock prices. Investors will also be focused on corporate earnings, with Fujitsu, Tokyo Electron and Nissan Motor among the companies set to report.

Those earnings will be far too early to gauge the impact of the trade deal, but they will help investors get a sense of how strong Japanese companies are as they prepare for a prolonged period of higher tariffs — however good the figures might look compared to the worst case scenario.

The 15% tariff on Japanese goods, including autos, was a relative reprieve from earlier threats of 25% or higher. Japan also agreed to invest $550 billion into the U.S. as part of the deal, a vague pledge that has left market participants guessing at the potential details.

"You’ve certainly got the makings of an extended rally,” said Pelham Smithers, an analyst who runs an eponymous Japan equity research firm in the U.K. "But the bigger questions will be Bank of Japan policy, and whether Trump backtracks on this tariff deal.”

Smithers, who was engrossed in the video-game Civilization when news of Trump’s Japan deal broke, says his "army of sales people” were swamped with calls from clients asking for updates on Japan’s market.

The enthusiasm is understandable. After trading sideways for most of July, the Topix Index jumped 4% over the course of the week, notching a new all-time high. Toyota Motor’s shares posted their biggest intraday gain since 1987. SoftBank Group's shares hit a record high.

Japan’s 10-year bond yields reached their highest level since 2008 after the trade deal was announced. Two-year yields, which are sensitive to changing interest rate expectations, also jumped.

"The tariff news was a complete positive surprise,” said Hisashi Arakawa, director and head of equities at abrdn Japan. "I didn’t expect the market to move that quickly.”

The outlier to the wild moves was the yen, which fluctuated between gains and losses as traders digested the news.

Caution was returning to the stock market by the end of the week, with both the Nikkei 225 index and the Topix closing down almost 1% Friday, part of a wider decline in Asia.

One major concern is that the weakened government — whether led by Ishiba or someone else — may give in to opposition calls for tax cuts, worsening Japan’s already stretched fiscal position. Worries about government finances have weighed on global debt markets in recent months, hitting Japan’s ultralong bonds alongside those in the U.S. and elsewhere.

Local media reports that Ishiba will soon announce his resignation have fueled these concerns, although he denied the reports.

For now, investors in Japan have more questions than answers. The country’s trade relationship with the U.S. is, more or less, clear. But almost everything else remains in flux, and market watchers think the recent rally may reflect hope more than reason.

"We all need to cool our heads and regroup,” said Yusuke Sakai, a senior trader at T&D Asset Management in Tokyo, who called the stock rally a knee-jerk reaction.

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Japan: Opportunity Trumps Politics

The U.S. trade deal will further support improving economic fundamentals in Japan, which underpin our constructive equity positioning on the country. Recent political developments and volatility in the government bond market are unlikely to change our long-held view.

The striking of a better-than-feared trade deal with the U.S. last week has removed a significant economic uncertainty for Japan, further bolstering the improving fundamentals of the country, and helping lift equities to near-record highs.

https://www.nb.com/en/global/insight...rumps-politics
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Japan PM Shigeru Ishiba signals he'll stay amid resignation calls

Japanese PM Shigeru Ishiba signalled he intends to stay in office despite a growing number of calls within the ruling party for him to step down after an election setback last week. "I intend to devote myself to the people and the future of the country," Ishiba said in an interview with national broadcaster NHK. He added he must take responsibility for implementing the recently announced US-Japan trade deal, and that the real work on it starts now.

Japan Expects 1%-2% of $550 Billion US Fund to Be Investment

Japan expects only 1% to 2% of its recently agreed upon $550 billion US fund to be deployed as investment, with loans making up the bulk of the rest, according to the nation’s top chief negotiator Ryosei Akazawa.

Meanwhile, Tokyo stands to save roughly ¥10 trillion ($68 billion) through lower tariff rates in its deal with the US, Akazawa told public broadcaster NHK on Saturday.

The details revealed by Akazawa suggest the Japanese may end up giving up much less than at first glance.

The $550 billion investment framework combines investments, loans and loan guarantees provided by financial institutions backed by the Japanese government, Akazawa said. Of the total, investment will comprise 1% or 2% and the US and Japan will split the profits of that investment at a ratio of 90-10, he said. Japan had originally proposed a 50-50 ratio, he added.

The fund is a centerpiece of the deal announced by the two sides that will impose 15% tariffs on Japanese cars and other goods. Officials from Japan and other countries that struck deals with the US are now sifting through the terms to explain them to the public.

“It’s not that $550 billion in cash will be sent to the US,” Akazawa said. “By letting the US have 90% of the profits rather than 50%, I think Japan’s loss will be at most a couple of tens of billions of yen. People are saying various things, such as ‘You sold out Japan,’ but they’re wrong.”

For the loans provided through the program, Japan will collect interest payments; and for loan guarantees, if nothing happens Japan will collect fees, Akazawa said. “For that part, Japan’s just making money,” he said.

Akazawa also clarified that the investment program won’t be only supporting Japanese and US firms. As a potential example, he cited a Taiwanese semiconductor firm building a factory in the US.

“We’d like to put the $550 billion in place during President Trump’s term,” Akazawa added.

The Japan side has cited JBIC and NEXI as the government-backed organizations that will be leading financing for the projects. For JBIC, in the year ended March, around 77% of its assets were in loans, and 6.6% in loan guarantees.

Further details of the implementation of the US-Japan deal remain unclear, including when the new tariff rates will take effect and when the new investment vehicle will kick off. There’s been no joint document signed by both sides for the deal, although the White House has published a fact sheet.

“If you say something like, ‘Let’s create a joint document,’ they will say, ‘We’ll lower tariffs after the document is created,’” Akazawa said. In order to not lose time, “we will demand that they issue an executive order to lower tariffs as soon as possible, regardless of a document.”

Last week, Akazawa said he expects universal tariffs on Japan’s shipments to be lowered to 15% on Aug. 1. He said he wanted the car tariffs to be cut to 15% as soon as possible, without specifying a date.

The Trump administration has touted the deal with Japan as a potential model for others. On Sunday, the US and European Union agreed on a deal that will see the bloc face 15% tariffs on most of its exports with the EU pledging to invest $600 billion in the US.

LDP Panel Holds 1st Meeting to Analyze Recent Election Defeat

A Liberal Democratic Party committee tasked with analyzing the factors behind the ruling party's defeat in the House of Councillors election this month held its first meeting at the party headquarters on Thursday.

"We'll figure out the challenges we face," LDP Secretary-General Hiroshi Moriyama, who chairs the committee, said at the meeting. "Our party will unite and work to regain public trust."

The panel is scheduled to compile a report by the end of August. Moriyama has suggested that he will resign after the panel report is finalized. The report could also be a turning point for Prime Minister Shigeru Ishiba, who is facing mounting pressure from within the LDP to step down.

"Our party received harsh criticism from many people," Moriyama noted. "We need to accept it solemnly."

The panel's other members include Seiji Kihara, head of the party's Election Strategy Committee, Yasutaka Nakasone, director of the Youth Division, and Akiko Honda, head of the Women's Affairs Division.

Japan PM Ishiba Unlikely to Announce View on WWII Soon

Japanese Prime Minister Shigeru Ishiba has decided not to announce his view on World War II on Aug. 15, the 80th anniversary of his country's surrender in the war, sources said Saturday.

Ishiba had also considered announcing the view on Sept. 2, the date when Japan signed the surrender document in 1945, but no such announcement is likely to be made that day, senior officials of the government and Ishiba's Liberal Democratic Party said.

Ishiba is still seeking an appropriate time to announce his view, which would be based on the results of a review of the war.

But some expect that it would be difficult to make such an announcement, which could intensify calls for his resignation that emerged within the LDP following the party's rout in the July 20 election for the House of Councillors, the upper chamber of parliament.

Japan had issued a prime minister's statement to mark each of the 50th, 60th and 70th anniversaries of the country's surrender in the war. The tradition could be broken by Ishiba.

Biggest ever: Japan wins Australian navy warships deal

Australia has chosen a Japanese company to build a new $10 billion frigate fleet for the navy.

Mitsubishi Heavy Industries’ Mogami-class frigate is the federal government’s preferred vessel for its future fleet over the German Meko-class frigate.

The deal is the biggest defence industry agreement ever been struck between Japan and Australia, Defence Minister Richard Marles said on Tuesday.

“There is no country in the world with whom we have a greater strategic alignment, and that is being reflected in a blossoming defence relationship,” he told reporters in Canberra.

“This decision is entirely based on the capability of the respective ships.

“This does represent a very significant moment in the bilateral relationship between Australia and Japan.”

The Mogami-class warships had a comparable cost to its competitors at acquisition but over the whole of life, the Japanese ships were cheaper, the minister added.

The frigate is also already in production, making it the only option to meet the government’s timeline.

Australia hopes to acquire its first ship in 2029 for service in 2030, according to Defence Industry Minister Pat Conroy.

It can fire more missiles at longer distances and is more inter-operable with other Australian defence assets.

The new ships will replace Australia’s older ANZAC-class frigates.

The federal government has also secured a pipeline of shipbuilding work in Western Australia, with some of the new ships to be built domestically.

It has a new agreement with Australia’s newly established strategic shipbuilder, Austal Defence Shipbuilding Australia Pty Ltd.

Hiroshima victims remembered 80 years on

People across Japan are remembering one of the darkest days in the country's history. Wednesday marks 80 years since an atomic bomb devastated Hiroshima.

Hiroshima fell silent at 8:15 a.m. -- the same moment the bomb dropped in 1945. The heat and radiation from the blast destroyed the city, killing an estimated 140,000 people by the end of the year.

Many who survived suffer from cancer, and other diseases, related to radiation exposure.

About 55-thousand people attended this year's ceremony.

Hiroshima Mayor Matsui Kazumi placed an updated list of the dead in the park's cenotaph. There are now 349-thousand and 246 names, including 4940 who died, or whose deaths were confirmed, over the past 12 months.

Peace declaration
In his peace declaration, Matsui spoke about Tsuboi Sunao, an atomic bomb survivor. He led a campaign calling for the abolition of nuclear weapons... until his death four years ago.

Matsui Kazumi, Hiroshima Mayor
One hibakusha leader frequently reminded younger audiences, "Building a peaceful world without nuclear weapons will demand our never-give-up spirit. We have to talk and keep talking to people who hold opposing views." Today, conveying the ardent pleas for peace derived from hibakusha experiences is more crucial than ever.

He also called on policy makers around the world to visit Hiroshima. He said they should witness with their own eyes what an atomic bomb does. Matsui also urged them to immediately start discussing a security framework based on trust through dialogue.

A world without nuclear weapons
Prime Minister Ishiba Shigeru also spoke at the ceremony. He said Japan is committed to a world without nuclear weapons.

Ishiba Shigeru, Japanese Prime Minister
In pursuit of a world without nuclear weapons to lead the global community's initiatives is Japan's mission, as the only nation to suffer atomic bombings during war. When I visited the Hiroshima Peace Memorial Museum, I renewed my resolve that these unbearable ordeals and memories should not be allowed to fade away, and must be handed down through future generations.

There are now less than 100,000 atomic bomb survivors left alive. Their average age is over 86 years old. As time goes on, it will become increasingly difficult to hear their stories directly.

Nippon Ishin Co-Head Maehara, 3 Other Execs to Step Down

Nippon Ishin no Kai (Japan Innovation Party) co-leader Seiji Maehara and three other executives announced their plans to resign at an emergency meeting of party executives in Tokyo on Tuesday, in the wake of the opposition party's unimpressive showing in the July 20 House of Councillors election.

"It is important to renew the party's executive members to unite the party once again," Maehara said.

Maehara's successor is expected to be picked through a vote Friday. According to related sources, Fumitake Fujita, former secretary-general, appears eager to run in the election.

Nippon Ishin is set to vote Thursday on whether to hold a leadership election. But there is a growing view that the election will not be held and that its current leader, Hirofumi Yoshimura, will stay on.

The focus will be on whether Yoshimura can solidify the party's unity and gain a foothold for its rebuilding through the upcoming personnel changes.

Japan PM Ishiba Hints at Possible Supplementary Budget

Japanese Prime Minister Shigeru Ishiba on Tuesday indicated the possibility of the government compiling a supplementary budget for the current fiscal year to finance steps for dealing with tariff measures of the administration of U.S. President Donald Trump.

During intensive deliberations on the recently reached Japan-U.S. tariff deal at a meeting of the Budget Committee of the House of Councillors, the upper chamber of Japanese parliament, Ishiba also said that he will consider publishing a "fact sheet" detailing the bilateral agreement to allay public concerns.

Responding to a call for the compilation of a fiscal 2025 supplementary budget from Kyoko Murata of the main opposition Constitutional Democratic Party of Japan, Ishiba said that the government "needs to appropriately deal with the matter, including in terms of the timing and size, based on discussions by political parties."

Toshiharu Furukawa, the ruling Liberal Democratic Party's policy chief in the Upper House, called on the government to support industries through a supplementary budget.

The prime minister replied that he wants to provide "very detailed support so that businesses don't face financing difficulties."

Oslo welcomes Nobel Peace Prize laureate Nihon Hidankyo on 'Hiroshima Day'

An event was held in the Norwegian capital of Oslo to honor last year's Nobel Peace Prize laureate, Nihon Hidankyo. The organization represents atomic bomb survivors and advocates for the abolition of nuclear weapons.

The event took place at the Nobel Peace Center on Wednesday, August 6, coinciding with the day the United States dropped an atomic bomb on the Japanese city of Hiroshima 80 years ago.

At the event, the chair of the Norwegian Nobel Committee, Joergen Frydnes, praised the achievements of Nihon Hidankyo.

He said the Nobel Peace Prize is "more than just a recognition, it's also a warning and a call, a warning that the nuclear threat is not behind us, it is ahead of us, and a call to remember what too many seems to have forgotten, what nuclear weapons truly are."

The assistant secretary general of Nihon Hidankyo, Wada Masako, was just 1 year old when the nuclear bomb was dropped on Nagasaki. She shared with the audience stories of the devastation she heard from her mother.

Wada appealed for the abolition of nuclear arms, saying, "nuclear weapons cannot coexist with human beings." She emphasized that it is "up to us humans to abolish them by our wisdom, public conscience and responsibility."

An Oslo resident in her 20s who attended the event said that if they don't hear directly from the survivors, people will forget. She stressed the importance of hearing their stories while they are still alive.

Japan’s ruling coalition eyes steps against election interference

he ruling coalition on Tuesday agreed to consider strengthening regulations to prevent foreign interference in elections through social media, including possible legal reforms, following the appearance of suspicious posts that spread during the campaign for the July 20 House of Councilors election.

The government is also considering strengthening its information-gathering system.

The secretaries general of the ruling Liberal Democratic Party and Komeito held talks in Tokyo and reached the agreement.

“Preventing foreign interference in elections is one of the most important issues,” said Komeito Secretary General Makoto Nishida at a press conference following the meeting.

False information and misinformation could distort election results. The LDP and Komeito plan to discuss the issue with the opposition parties, eyeing steps including possible revisions to the Information Distribution Platform Law.

“We will continue to discuss specific measures in the future,” LDP Secretary General Hiroshi Moriyama said at the press conference.

In the upper house election, cases of anomalous dissemination of social media posts were reported to the government by private data analysis companies and others. According to government officials, it is believed that an automated posting program called a bot was used, and posts critical of the government were widely disseminated through a large number of “likes” and repeated reposts.

In Europe and the United States, Russian interference in elections has become an issue. The Japanese government suspects that foreigners were involved in the case of the upper house election.

“Our country is also a target of such operations,” said Deputy Chief Cabinet Secretary Kazuhiko Aoki at a press conference on July 16.

The Cabinet Intelligence and Research Office and the National Security Secretariat collect and analyze data related to the spread of false and misleading information believed to be from foreign forces, and not only during elections. However, the system is considered weak compared to that of other countries.

“The government does not have a department specifically assigned to this issue. We need to strengthen our system,” digital minister Masaaki Taira said at a press conference on Tuesday.

Within the government, there is a plan to establish a system to tackle the issue centered on the Cabinet Secretariat. The government will consider effective measures in the future.

The government plans to strengthen its ability to respond to election interference in cooperation with like-minded countries such as other members of the Group of Seven advanced nations. The government is considering plans to establish a specialized department for “countering interference in domestic affairs” to share information with like-minded countries and to conduct analyses in collaboration with universities while respecting the “freedom of expression” guaranteed by the Constitution.

“We aim to further strengthen our response capabilities by collaborating with countries that share the same concerns,” Foreign Minister Takeshi Iwaya said at a press conference on the same day. “We will work closely with relevant government agencies to take necessary measures.”

Japan high court to rule in Sept. in case of explosive hurled at then PM Kishida

The Osaka High Court has held a hearing in the appeal of a man sentenced to 10 years in prison for throwing a handmade explosive device at then Japanese Prime Minister Kishida Fumio that injured two people.

The court has decided to render a judgment on September 25.

Kimura Ryuji was accused of attempted murder and other charges after throwing the explosive at Kishida, Japan's prime minister at the time. Kishida was visiting a port in Wakayama City during an election campaign in April 2023.

The Wakayama District Court sentenced Kimura to 10 years in prison in February. He appealed the ruling.

At the high court on Tuesday, Kimura's lawyer said the defendant had no intention to physically harm anyone and asked for a reversal of the lower court's ruling.

Prosecutors called on the court to dismiss the appeal.

The 26-year-old defendant did not answer any questions from the presiding judge, including when asked to give his name.

In New Year's message, emperor reflects anew on preciousness of peace

In his New Year's message on Thursday, Emperor Naruhito reflected anew on the preciousness of Japan's peace today.

After recalling the tragedies of World War II last year — the 80th anniversary of the conflict's end — the emperor said, "I took to heart the importance of continuing to pass down the country's history."

In the written message released through the Imperial Household Agency, he said it is "deeply painful" to see so many lives lost in wars and conflicts around the world.

"I believe it is important for people to seek mutual understanding through repeated dialogue and continue cooperation to build a peaceful world," the emperor said.

Emperor Naruhito expressed his sympathy to those affected by natural disasters last year, such as earthquakes and heavy rain, as well as inflation.

"I hope that people will be able to overcome their difficulties while caring for and supporting each other," he said.

The emperor ended the message by praying that the new year will become a good year that allows people in his country and around the world to move forward with hope.

Emperor Naruhito and Empress Masako were set to attend a ceremony to celebrate the start of the new year at the Imperial Palace later in the day, and greet the public at an event at the palace in Tokyo's Chiyoda Ward on Friday together with other imperial family members.

Prince Hisahito, the son of Crown Prince Akishino and Crown Princess Kiko, will attend the events for the first time.

With this year marking the 15th anniversary of the March 2011 Great East Japan Earthquake, the agency is making arrangements for the emperor and empress to visit Iwate, Miyagi and Fukushima prefectures, which were hit hardest by the disaster, in spring in order to inspect progress in reconstruction efforts.

The imperial couple is also expected to visit Kumamoto Prefecture in the autumn, as this year will mark the 10th anniversary of major earthquakes in the southwestern prefecture in April in 2016.

They will also visit Ehime, Aomori, Kochi and Osaka prefectures for four major annual regional events they attend every year, including a national tree-planting festival.

Takaichi strikes optimistic tone as she looks ahead to Year of the Fire Horse

Prime Minister Sanae Takaichi hopes that 2026 will live up to its namesake as the Year of the Fire Horse — one of positive energy and vitality.
But while she is coming off a successful 2025, unfinished domestic business, including a controversial bill to reduce parliamentary seats, and foreign policy challenges — from China to Venezuela — could sap some of those good feelings.

“This year, the Year of the Fire Horse signifies that the positive energy carried over from the previous year will develop more distinctly and vigorously,” she said at her first news conference of the year during a visit to Ise Shrine in Mie Prefecture.

Asked for her comments about the U.S. decision to attack Venezuela and capture its president, Takaichi said her priority is to ensure the safety of Japanese citizens in the Latin American country but avoided criticism of the move.

“Japan has consistently emphasized the importance of restoring democracy in Venezuela as soon as possible,” she said.

With parliament scheduled to reconvene on Jan. 23, Takaichi and her administration will be focused on getting the fiscal 2026 budget passed by the end of March. She vowed to build bridges with opposition leaders and introduce legislation that will reduce financial burdens associated with pregnancy and childbirth and help middle- and low-income earners struggling with social security contributions.

To this end, Takaichi called on opposition parties to establish a national conference later this month on how to reform the social security system.

“During the (upcoming) session of parliament, we’ll strive to pass the budget that enables these reforms,” she said.

While Takaichi has confirmed plans to visit the U.S. sometime this spring, she expressed hopes that Japan-China relations would improve this year.

“Japan remains open to various dialogues with China. We are not closing any doors,” the prime minister said.

Takaichi offered no guarantees that a bill to reduce the number of Lower House seats by 10% would be passed in the upcoming parliamentary session.

The Japan Innovation Party (also known as Nippon Ishin no Kai) strongly demanded the bill as a condition for joining Takaichi and the Liberal Democratic Party as its ruling coalition partner. Debate on the bill will continue, but its fate in parliament is uncertain due to opposition from other parties as well as within the LDP itself.

“The appropriate number of parliamentary members is a matter fundamental to democracy. It’s crucial that each party and party faction debate this issue. While we hope discussions progress as quickly as possible, as prime minister, I wish to refrain from making specific comments on how these discussions should be conducted,” she said.

Takaichi ended 2025 with high approval ratings in media polls, raising speculation that she might take advantage of her popularity by dissolving parliament in the coming months and calling a general election in the hope that the LDP would ride her coattails to victory, and possibly regain a parliamentary majority.

However, she avoided suggestions that a snap election was imminent in her first news conference of 2026, saying that she is focused on the immediate challenges of governing.

“I have instructed all ministers to expedite execution of the 2025 supplementary budget. It’s vital that people feel the tangible effects of the Takaichi Cabinet’s measures against rising prices and its economic policies,” she said.

Japan defense minister to visit U.S. next week to reaffirm strong alliance

Japanese Defense Minister Shinjiro Koizumi said Friday that he is set to make a weeklong trip to the United States next week to cement the bilateral alliance in the face of an increasingly severe security environment in the Asia-Pacific region.

Koizumi told a regular press conference that he will deliver a speech at the Honolulu Defense Forum in Hawaii on Monday before traveling to Los Angeles the following day and then to Washington, where he will meet with counterpart Pete Hegseth on Thursday.

"With Secretary Hegseth, I plan to have a frank discussion about the security environment as well as specific efforts to strengthen the alliance's deterrence and response capabilities further," Koizumi said. He is scheduled to return to Japan on Jan. 18.

The two defense chiefs will speak for the fourth time since Koizumi assumed the post last October, reflecting their need to work together to overcome security challenges from nations such as China and North Korea.

They held phone talks last month after Chinese military aircraft locked radar on Japanese Self-Defense Forces fighter jets over international waters off Japan's southernmost prefecture of Okinawa.

In Honolulu, Koizumi is also scheduled to meet with Adm. Samuel Paparo, commander of U.S. Indo-Pacific Command.

In Los Angeles, Koizumi plans to visit a drone-related company and attend a reception commemorating the 15th anniversary of Operation Tomodachi, the rescue and relief efforts jointly conducted by the U.S. military and Japan's Self-Defense Forces in the wake of the devastating March 2011 earthquake and tsunami.

When asked how he would respond if urged by Hegseth to voice support for the recent U.S. actions in Venezuela, Koizumi was noncommittal, saying, "It's difficult to answer before the meeting."

He then said it is "important (for the international community) to make diplomatic efforts to restore democracy and stabilize the situation in Venezuela."

The United States launched a military attack on Venezuela to capture President Nicolas Maduro and his wife last week, subsequently taking them to New York to face charges for alleged crimes.