Japanese stocks weakened on Thursday as new Prime Minister Sanae Takaichi prepared for challenging, major budget negotiations. The Nikkei 225 index fell 0.24%, or 94.09 points, to close at 38,814.56. The pressure arises as Japan must balance Takaichi's fiscal stimulus plan with its $550 billion investment obligation to the United States under the tariff agreement reached by her predecessor. If the funds are not disbursed before US President Donald Trump's term ends in January 2029, tariffs on Japanese goods could surge above 15%.

To reduce the fiscal burden, Takaichi plans to partner with private investment and national financial institutions. The Japan Bank for International Cooperation has even set up a special fund for projects in the US and could potentially cover one-third of the total costs through a loan scheme. This step is considered crucial to ensure Japan does not violate the trade agreement and maintains fiscal stability amidst global economic challenges.

On the corporate side, several issuers have attracted attention. Syuppin shares surged 5.4% after shareholder Takumi Capital demanded board changes to improve business focus. Meanwhile, Sony Group, through its non-profit organization Arc & Beyond, launched an animation training program in Africa to expand international collaboration. Mitsui & Co. also saw positive news after joining Thailand's first carbon capture project, scheduled to begin operations in 2028. (az)

Source: Newsmaker.id