Economy · May 2026

Japan's government approved ¥500 billion ($4 billion) in reserve funds to subsidize household energy bills, expanding on previous aid as costs remain high. A Reuters poll forecasts Japan's Nikkei index will reach a record 69,000 by 2027, outpacing global peers in a blistering rally. Japan's net external assets fell to third place globally, behind China, as the yen remains undervalued versus the dollar, according to analysts. A former head of a Japanese trading house warned of a naphtha supply crunch, while Japan sharpens its specialty chemicals push. Morgan Stanley hired Société Générale's former head of Japan regional bank sales, and Prudential Life reported a $47 million loss for customer compensation.