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] Japan: inflation and governance reforms signal progress; domestic reinvestment in digitization, decarbonization and fusion is critical amid diplomatic and inflation risks. Amova Asset Management - New Zealand
• [New] Japan: Japan is projected to record 14.0% CAGR over the assessment period as urban safety and disaster monitoring support drone adoption. FactMr
• [New] Japan: Japan's target is for all new passenger-car sales to be electrified by 2035, a category that includes hybrids as well as EVs, plug-in hybrids, and fuel-cell vehicles. Coltura - Moving America Beyond Gasoline by 2040
• [New] As China becomes more aggressive and coercive, Japan will keep expanding its defence apparatus. Foreign Affairs Magazine
• [New] Tokyo's efforts are particularly essential because a Taiwan crisis might begin with a Chinese effort to split U.S. and Japanese decision-makers. Foreign Affairs Magazine
• [New] Japan: Demand for mood-support botanicals in Japan is expected to grow at 8.4% CAGR through 2036 due to rising focus on stress reduction, aging population wellness needs, growing sleep-support product demand, and increasing adoption of premium functional nutrition products. FactMr
• [New] Japan aims to produce and import up to 3 million tons of hydrogen annually by 2030, increasing catalyst demand across refining, fuel processing, and hydrogen conversion applications. Research Nester
• [New] Global data center power demand is expected to rise by 2.5 times by 2030, which would equal Japan's total power use just for data centers. Sprott ETFs
• [New] Asia-Pacific is projected to witness the fastest growth due to aggressive deployment activities in China, Japan, and South Korea. DataM Intelligence
• [New] Japan is forecast to grow at 10.0%, helped by ageing-linked care demand and gut-health research. FactMr
• [New] Fastest Growing Region: Asia Pacific is the fastest-growing region with a projected CAGR of about 6.8%, supported by rising disposable incomes, K-beauty influence, and tightening cosmetic safety regulations across China, India, and Japan. Persistence Market Research
• [New] Asia-Pacific is projected to register the fastest growth due to large-scale textile manufacturing ecosystems and increasing smart wearable demand in China, Japan, South Korea, and India. openpr
• [New] The Takaichi Cabinet, bolstered by a strong and unwavering belief in the latent power of Japan and the Japanese people, will make the Japanese archipelago stronger and more prosperous. Prime Minister's Office of Japan
• [New] Japan's core CPI rate eased more than expected in April, falling from 1.8% to 1.4% y/y. investing.com
• [New] Japan plans to deepen information-sharing efforts regarding maritime domain awareness (MDA) with Southeast Asian nations to protect sea lanes critical to trade. American Enterprise Institute - AEI
• [New] U.S.-Japan FX cooperation could allow the yen to strengthen in an orderly way as the Bank of Japan continues normalising policy. investing.com
• [New] Improvements in earnings growth are expected to support equities in Europe and Japan, with the MSCI Europe Index projected to rise 11% and Japan's TOPIX Index forecast to gain 12% by mid-2027. Morgan Stanley
• [New] Pet grooming services demand in Japan is expected to post 6.1% CAGR through 2036. FactMr
• The G7 CEG has identified quantum computing as an area of both potential benefit and risk to the financial system. / Japan U.S. Department of the Treasury
• G7 Advancing a Coordinated Roadmap for the Transition to Post-Quantum Cryptography in the Financial Sector [Japanese] Quantum computers have the potential to transform the financial sector by unlocking powerful new capabilities and opportunities. U.S. Department of the Treasury
• Japan introduced its first Space Domain Defence Guidelines, emphasising satellite protection and countermeasures against anti-satellite threats, signalling a stronger integration of space into national security strategy. Bird & Bird
• Japan is especially exposed, given its heavy reliance on imported Middle East energy, and is expected to grow by only 0.5% in 2026. niesr
• The future will see Japan positioning itself as a regional leader in AI-enhanced cyber risk analytics, with a focus on industrial cybersecurity and cross-sector collaboration. Verified Market Reports

Last updated: 06 June 2026