Japan in April 2026: the most important developments in economy
Japan's economy in April 2026 was shaped by the Iran war and the disruption of oil shipping through the Strait of Hormuz. On April 15 Japan announced a support package of about $10 billion to help Southeast Asian countries cope with oil price swings and secure supplies. At home, Prime Minister Takaichi said Japan had enough oil reserves to last beyond this year and could meet at least four months of naphtha needs. The government announced an additional release of 20 days' worth of oil reserves from May and measures against price gouging at petrol stations. Japan-linked tankers began to cross the Strait, and US and Mexican crude arrived as alternative supply. A naphtha shortage still forced TOTO to halt orders for unit baths, and manufacturers were hit by an aluminium shortage. Japan's biggest airlines brought forward fuel surcharges.
Markets moved sharply. The Nikkei rose 2,878 points on April 8 after the US-Iran ceasefire, hit a record 59,585 on April 22 on AI and chip buying, and closed above 60,000 on April 27. The 10-year government bond yield reached a 29-year high. The Bank of Japan held rates on April 28 but signalled a possible June rise, with its most hawkish split vote under Governor Ueda. The yen weakened past 160 per dollar on April 29. Real wages rose the most since 2021, while household spending fell and business failures topped 10,000 for a second year.
Investment in technology continued. Microsoft plans a $10 billion investment in Japan for AI and cybersecurity infrastructure. The government approved another $4 billion for chipmaker Rapidus, bringing state backing to about $16 billion. SoftBank sought a $10 billion loan backed by OpenAI shares.
Carmakers faced change. Nissan cut its model range by 20%, held talks with China's Chery on building cars in Sunderland, left Argentina and narrowed its forecast loss, now expecting an operating profit. Suzuki overtook Nissan in global sales. Honda cancelled EV deliveries. Japan also moved to block MBK's takeover of the machine tool maker Makino on security grounds.
by WorldBrief & Maksim Micheliov | AI-generated summary
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