Japan

Economy

The Nikkei 225 stock index reached a new all-time high, influenced by a rise in U.S. stocks and a weaker yen, which later strengthened following Sanae Takaichi's election victory. Domestically, corporate earnings were mixed, with Honda and Toyota reporting steep quarterly profit drops while Sony raised its forecast; inflationary pressures showed signs of easing as the core rate slowed to 2.0%. Internationally, the U.S. and Japan unveiled the first three major projects under a large trade deal, representing a combined $36 billion, and TSMC announced a major upgrade to its new factory in Japan to produce advanced 3-nanometer chips.

Politics

Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party secured a supermajority in a snap lower house election, providing a strong mandate for her promised conservative policy shift and seen as enabling a potential push to revise Japan’s constitution. The main opposition Constitutional Democratic Party of Japan suffered significant losses, leading its co-leaders to resign, while the smaller populist party Sanseito gained many more seats. In international relations, China’s top diplomat warned Japan about the ‘ghosts of militarism’ following Takaichi’s victory, and Donald Trump endorsed Takaichi and announced plans for her to visit the White House in March.

Information

Domestic attention was divided between administrative measures and public events. Tokyo authorities implemented new smart trash cans in Akihabara, while police conducted roadside moped checks; a separate traffic incident involved a Lamborghini driver who fled after a crash on the Tsukiji Bridge that injured six people. In Osaka, a double election proceeded amid reports of low voter interest, and public attention was captured by events ranging from local crime reports to a popular mascot's 'reunion ceremony' ahead of the 2025 Osaka World Expo.

Security

Japan's international security relations were marked by escalating tensions with China. China imposed export controls on 20 Japanese companies, including Mitsubishi Heavy Industries, and Japan seized a Chinese fishing vessel and arrested its captain within Japan's exclusive economic zone off Nagasaki. Domestically, Minister Sanae Takaichi outlined goals including the creation of a new foreign investment screening mechanism modeled on the U.S. CFIUS, and the government introduced new aviation safety rules set to begin in April, banning portable chargers on flights.

Humanitarian

Government data confirmed a continued demographic trend, with the number of newborns in Japan falling to a record low in 2025, marking the tenth consecutive annual decline. NHK published a series of reports highlighting various societal challenges, including student non-attendance, sleep disorders among youth, and young people providing family care. In a contrasting development, figure skaters Riku Miura and Ryuichi Kihara won the gold medal in the pairs event at the Olympic Games, setting a world record score.

Energy

Tokyo Electric Power Company restarted