The Bank of Japan has increased its benchmark interest rate by 25 basis points to 0.75 percent, marking its highest level since September 1995. This unanimous decision, following a two-day monetary policy meeting, signals a continued shift away from ultra-loose monetary policy amid persistent inflation and expectations of sustained wage growth.
Bipartisan U.S. senators have introduced a resolution expressing strong support for Japan and condemning China's economic and military pressure. The measure, led by Senators Pete Ricketts and Christopher Coons, reaffirms the U.S.-Japan alliance and the application of Article 5 to the Senkaku Islands, particularly in light of recent tensions over Taiwan.
A Chinese government travel advisory, citing diplomatic tensions and security concerns, has significantly impacted the growth of Chinese visitors to Japan. This has led to hotel cancellations, reduced retail sales, and concerns among Japanese tourism businesses, despite an overall record year for inbound tourism.
Japan is set to host its first-ever summit with five Central Asian nations in Tokyo on December 19-20, 2025. The meeting aims to expand collaboration, strengthen supply chains, foster sustainable development, and reinforce a rule-based international order, with discussions on economic security and AI.
Japan's ruling coalition, comprised of the Liberal Democratic Party and the Japan Innovation Party, has agreed to postpone discussions on a bill to reduce Lower House seats by 10% until next year. The decision, made on December 16, 2025, comes amidst strong opposition and a lack of time in the current Diet session.
A magnitude 4.4 earthquake occurred off the coast of Miyagi Prefecture, Japan, on Tuesday, December 16, 2025, at approximately 11:45 a.m. local time. The Japan Meteorological Agency confirmed no tsunami was expected, with seismic intensity reaching 3 in parts of Miyagi.
Japan's ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party, have decided to reconsider the planned route for the Hokuriku Shinkansen's Tsuruga to Shin-Osaka section. The move comes amid significant opposition from local municipalities over environmental and fiscal concerns, including ballooning construction costs.
Japan's Financial Services Agency (FSA) has proposed a significant reclassification of digital asset regulation, moving it from the Payment Services Act to the stricter Financial Instruments and Exchange Act. This shift aims to enhance investor protection, introduce comprehensive disclosure requirements, and align cryptocurrency oversight with traditional securities, reflecting crypto's evolving role as an investment vehicle rather than solely a payment method. The changes are anticipated to take effect in fiscal year 2026.
South Korean police have raided multiple offices of the Unification Church, including its headquarters, as part of a deepening investigation into alleged illegal payments to high-profile politicians. The probe links the church's leader, Han Hak-ja, to bribery accusations involving former first lady Kim Keon-hee and other lawmakers, with potential financial ties to Japan.
Japan will host its inaugural Tokyo Economic Security Forum on Monday, December 15, 2025, bringing together global officials and experts. The event, a centerpiece of the Economic Security Global Forum Weeks, will address critical issues like supply chain resilience, technological foundations, and international cooperation amidst increasing global uncertainties.
Tokyo-based venture company Heartseed announced successful clinical trial results for iPS cell-derived cardiac muscle transplants in 10 severe heart failure patients. The trial, which began in 2022, demonstrated improved cardiac function and no major safety concerns, paving the way for regulatory approval by 2026.
Prime Minister Sanae Takaichi has indicated a potential revision of Japan's long-standing 'Three Non-Nuclear Principles,' particularly the prohibition on introducing nuclear weapons. This move, driven by evolving regional security threats and concerns over U.S. deterrence, has sparked significant debate within Japan and among international observers.
Northern Japan, particularly Hokkaido and the Tohoku region, faced severe blizzard conditions and whiteouts on December 12th, leading to significant transportation disruptions including flight cancellations, train suspensions, and hazardous road conditions. The Japan Meteorological Agency issued warnings for heavy snowfall and strong winds.
The United States and Japan conducted joint military drills over the Sea of Japan on December 10, 2025, involving B-52 strategic bombers and Japanese F-35 and F-15 fighter jets. The exercise served as a show of force and a reaffirmation of the alliance's deterrence capabilities, following recent joint Chinese-Russian bomber patrols and escalating tensions with Beijing.
The kanji character for 'bear,' 熊 (kuma), has been chosen as Japan's Kanji of the Year for 2025. The selection reflects a year marked by an unprecedented surge in bear sightings and attacks across the country, leading to numerous injuries and fatalities and widespread public concern.
The kanji character for 'bear,' 熊 (kuma), has been chosen as Japan's Kanji of the Year for 2025, announced on December 12 at Kyoto's Kiyomizu Temple. The selection reflects a year marked by a significant surge in bear sightings and attacks across the nation, leading to record casualties and widespread public concern.
Japan's House of Representatives has passed a ¥18.3 trillion supplementary budget for fiscal 2025, marking the first major economic package under Prime Minister Sanae Takaichi. The budget, largely funded by government bonds, includes child allowances, gasoline tax abolition, and increased defense spending, now moving to the Upper House for final approval.
The Japanese government and ruling coalition are mulling a 7% tax deduction for corporate capital spending, alongside immediate depreciation options, to stimulate domestic investments. This initiative, part of Prime Minister Sanae Takaichi's economic strategy, targets both large and small businesses, aiming to strengthen the economy and will be included in the fiscal 2026 tax reform package.
A 48-year-old certified care worker, Kinichi Kanomata, has been arrested in Narita City, Chiba Prefecture, in connection with the death of 90-year-old resident Tomi Tsubaki at the Yurakuen nursing home. Kanomata allegedly assaulted Tsubaki, leading to fatal injuries.
Russia and China conducted their 10th joint strategic air patrol near Japan on December 9, 2025, involving Tu-95MS and H-6 bombers, along with fighter escorts. The eight-hour flight over the Sea of Japan, East China Sea, and Western Pacific prompted Japan and South Korea to scramble warplanes in response, with both nations expressing serious concerns.
