Japan

Economy

The Bank of Japan held its key interest rate steady, though further hikes are anticipated by summer, as the yen fell to an 18-month low, prompting government 'rate checks' and intervention speculation. Internationally, Japan faced a critical economic security challenge from China's new restrictions on rare earth mineral exports, spurring urgent efforts to find alternative sources and forge new partnerships with the EU and Italy to diversify supply chains.

Politics

Domestically, Sanae Takaichi dissolved the lower house and called a snap election for February 8, while in Osaka, a 'double election' was triggered following Governor Yoshimura's resignation. Internationally, Takaichi held a symbolic summit with South Korean President Lee in Nara to strengthen ties, while China criticized Japanese politicians for statements on Taiwan, and Italy's Giorgia Meloni visited to upgrade bilateral relations to a strategic partnership.

Security

China imposed stricter controls on dual-use exports to Japan, citing concerns over military ambitions and comments on Taiwan, labeling the move a curb on 'remilitarization.' Regionally, North Korea launched ballistic missiles toward the Sea of Japan, and Takaichi stated Japan could participate in U.S.-led military operations if China attacks Taiwan, arguing refusal would cause the security alliance to 'collapse.'

Humanitarian

Japan contended with a 6.2-magnitude earthquake off the western coast and record-breaking snowfall that caused major travel disruptions. A government report indicated a troubling rise in suicides among school children, which has become the leading cause of death for young people in Japan, representing the highest rate among major industrialized nations.

Energy

The domestic energy sector saw the significant restart of the world's largest nuclear power plant in Niigata, though it was immediately complicated by operational issues and a brief shutdown. Internationally, Mitsubishi began importing the rare metal gallium from Kazakhstan while also agreeing to its largest-ever acquisition, a US shale gas producer, as part of broader efforts to secure critical resources and diversify energy portfolios.

Information

Tokyo faced significant infrastructure disruption from a major power outage that halted the Yamanote train line for eight hours during the morning rush. In Osaka, a public service video aimed at preventing illegal gambling was pulled from distribution following strong public criticism, while police also handled an internal misconduct case involving several officers.