Politics and Economy

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Japan's METI 2026 Budget Focuses on Generative AI and Next-Generation Nuclear Reactors - Massive Investment in Domestic AI Development

Japan's Ministry of Economy, Trade and Industry allocates approximately 300 billion yen for generative AI in its 2026 budget proposal. Supporting domestic AI development with 1 trillion yen over 5 years in partnership with private companies like SoftBank. Also advancing next-generation nuclear reactor development to strengthen Japan's industrial competitiveness.

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Japanese Finance Minister Signals Readiness for Forex Intervention as Yen Weakens Despite Rate Hike

In December 2025, Japan's Finance Minister Satsuki Katayama signaled a clear willingness to intervene in currency markets as the yen kept sliding past 157 per dollar despite the Bank of Japan's rate hike. The authorities went on to buy roughly ¥11 trillion worth of yen between late April and late May 2026. Inside the US-Japan joint statement that underpinned the move, and why the yen stayed weak anyway.