Japan Update

Takaichi Considering Snap Election as Soon as February Prime Minister Sanae Takaichi is said to be considering a snap election as soon as February. According

• China Expands Rare Earths Export Restrictions to Civilian Applications
• BoJ Branch Managers Meeting: Wage Hikes Same as Last Year
• November Real Consumption Up 2.9%
• Average Age of Cars on the Road Nears 10 Years
• 30-Year JGB Auction Weak
• Non-Profit Organizations Increase Investment in Corporate Bonds
• Minamitorishima Rare Earths Test Mining to Begin Next Week

• China Imposes Export Restrictions on “Dual Use” Materials Including Rare Earths
• Major Companies Expect to Boost Wages by More Than 5%
• 10-Year JGB Auction Smooth as MoF Boosts Coupon
• Is Strong USDJPY Forcing Japanese Long Rates Higher?
• July-September 2025 GDP Gap Shrinks
• Japan at Full Employment for 59 Months, Exceeding 1980s Bubble
• Young NISA Investors Push Top S&P 500 Fund AUM Over ¥10 Trillion
• 10-Year JGB Yield Tops Dividend Yield for First Time Since 2008

• BoJ Expected to Continue Rate Hikes in 2026
• November Tourist Arrivals Up 10.4%, Growth in Chinese Arrivals Slows
• October Machinery Orders Up 7.0%
• November Exports to US Rebound
• ¥18.3 Trillion Supplementary Budget Passes
• 10-Year JGB Yield Hits New Cycle High
• Government Considers Ending Road Tax Subsidy for Electric Vehicles
• Honda Motor (7267) Japan, China Production Halted by Chip Shortage
• Toray (3402) to Raise Carbon Fiber Prices by 10% to 20%

• Tankan Shows Continued Improvement
• Katayama Signals MoF on Board with Rate Hike
• BoJ Report Shows Most Firms Plan to Raise Wages by Same Amount as Last Year
• JGBs Sold as Rate Hikes Expected to Continue
• Winter Bonuses Top ¥1 Million for First Time