Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] Once passed, Spain will become the first European country to offer paid menstrual leave, although not the first worldwide as countries including Japan, Indonesia, South Korea and Zambia are already doing so. Sanitas Health Plan Spain
• [New] The Bank of Japan was forced to begin raising interest rates somewhat sooner than they had anticipated, potentially disrupting carry trades which are integral to some international investment strategies. Northern Trust
• [New] Japan will welcome a little bit of inflation. Northern Trust
• [New] In Japan, soaring cost estimates for several offshore projects led Mitsubishi Corporation to pull out of three major developments initially scheduled to start operations before 2030. Energynews.pro
• [New] For Japan and South Korea, national agencies must balance ambition with risk, especially as geopolitical tensions heighten the stakes for independent space capabilities. WebProNews
• [New] The Japanese Aerospace Exploration Agency had high hopes for the H3, a next-generation launcher designed to compete with heavy-lift vehicles from SpaceX and others. WebProNews
• [New] Australia is set for 4.1% growth, and Japan slows to 2.9%, yet APAC overall continues to expand its global share - expected to reach nearly 40% by 2028. Marketing-Interactive
• [New] Japan will launch a reverse offensive centered on the development of highly reliable AI, while expressing a sense of crisis that AI is influencing national power and is becoming a form of all-out warfare. Amiko Consulting
• [New] Japan is preparing for the introduction of the Emissions Trading System, which it plans to launch in autumn FY2027. Shulman Advisory
• [New] Japan plans to restart the world's largest nuclear power plant after more than a decade, with one reactor at Kashiwazaki-Kariwa coming online as early as January. cbs19.tv
• [New] The first reactor alone could boost electricity supply to the Tokyo area by 2%, Japan's Ministry of Economy, Trade and Industry has estimated. Al Jazeera
• [New] The 2 GWh capacity will likely expand to 5+ GWh by 2027 as allied nations (Japan, Australia, NATO members) seek similar supply chain security for their expanding UAV fleets, potentially establishing regional manufacturing hubs. Drone Warfare
• [New] The US-led regional response will hinge on whether Japan and South Korea achieve security clearance harmonization and co-production agreements before 2027, creating a distributed manufacturing network resilient to single-point disruption. Drone Warfare
• [New] North Korean mass production will likely commence by mid-2026, flooding Asian theaters with thousands of units and forcing Japan, South Korea, and Taiwan into economically unsustainable defence postures that mirror Ukraine's current dilemma. Drone Warfare
• [New] The Japanese space company has another five launches scheduled for 2026, via Rocket Lab spacecraft. UPI
• [New] Formed through a merging of the UK-led Tempest and Japan's F-X programmes, GCAP will produce a sixth-generation fighter with industries from the three partner nations collaborating on design and manufacture. Naval Technology
• [New] The tri-national Global Combat Air Platform programme, intended to deliver a next-generation fighter to the air forces of the UK, Italy, and Japan, is looking at a production order of 350 units by 2035. Naval Technology
• [New] Japan's 10-year government bond yield, already at an 18-year high of 1.95%, will likely push toward 2.25% or higher as markets price in additional hikes. investing.com
• [New] Cyber, weather, and geopolitical risks continue to be acute challenges for Japan businesses, underscoring the need for robust risk management frameworks and agile strategies. Insurance Business
• [New] The Japanese government has compiled a record fiscal 2026 draft budget totaling more than 120 trillion yen ($770 billion), reflecting Prime Minister Sanae Takaichi's push for aggressive fiscal spending as well as the need to please opposition parties. Nikkei Asia
• [New] Prime Minister Takaichi Sanae will enter 2026 seemingly in a dominant position in the Japanese political system and determined to pursue an ambitious agenda to bolster Japan's industrial strength and military power. Observing Japan
• [New] A rate hike from the Bank of Japan is largely baked in, although any signal that policymakers could tighten again before spring wage talks would mark a hawkish shift. CNBC
• [New] Japan's Martian Moons eXploration mission will head to Phobos, one of Mars's moons, to collect samples to bring back to Earth. Scientific American

Last updated: 27 December 2025