Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] Data center electricity use is projected to reach 945 TWh annually by 2030, equivalent to Japan's current consumption, with U.S. data centers expected to contribute nearly 50% of national electricity demand growth. Persistence Market Research
• [New] Japan has signed on a $550 billion Strategic Industrial Fund, part of which, at President Trump's direction, will finance projects in semiconductor manufacturing and research. Institut Montaigne
• [New] ASEAN automotive markets, particularly Thailand and Indonesia, are establishing themselves as EV production hubs for Japanese and Chinese OEMs, creating greenfield harness assembly investment opportunities. IMARC Group
• [New] Japan is expected to represent approximately 32% of Asia Pacific marine peptide revenue in 2026. Persistence Market Research
• [New] Japan and South Korea face higher exposure to Gulf energy risks. Insurance Asia
• [New] Japanese manufacturer Fujikura and engineering group Aecom, based in the US, are among companies wagering that efforts to support the fusion sector will prove profitable years before it sells meaningful amounts of electricity. Electricity Info
• [New] AI is the biggest driver pushing global datacenter electricity use to more than double by 2030 to around 945 terawatt-hours, slightly more than the entire electricity consumption of Japan. theregister
• [New] Data centers already account for meaningful local electricity demand, and the IEA projects that global data-center electricity consumption will more than double by 2030 to roughly 945 TWh, slightly more than Japan's current total electricity consumption. Perspective on Risk
• [New] Asia Pacific is the fastest-growing region with a 29% CAGR, driven by rapid digitalization, cloud adoption, expanding cyber threat activity, and evolving regulatory frameworks across China, India, and Japan. Persistence Market Research
• [New] Japan, South Korea and Taiwan have increased coal procurement as a hedge against LNG disruptions, while additional support stems from reduced Indonesian domestic supply and a forecast super El Nino event lifting cooling demand in the Northern Hemisphere. Westpac IQ
• [New] Given infrastructure damage and limited alternative export capacity, LNG markets are expected to remain tight, with prices unlikely to return to pre conflict levels until 2028. / Japan Westpac IQ
• [New] The Bank of Japan has raised interest rates to their highest level in 31 years in a widely expected move, and announced adjustments to its government bond-buying programme from 2027. Central Banking
• [New] The Bank of Japan is expected next week to hike its interest rate by 0.25%. DailyForex
• [New] Japan faces a delicate balancing act, as it battles a weak yen and inflation imported from abroad while supporting a fragile economy expected to grow just 0.4%. Yahoo! Finance
• [New] SoftBank Corp. will progressively begin outreach to selected eligible companies supporting Japan's critical infrastructure to accept applications for vulnerability assessments. SoftBank Group Corp.
• [New] East Asia is facing a looming demographic crisis with significant population reductions expected in countries like China and Japan. PubMed Central (PMC)
• [New] Britain will join forces with Japan to build mini nuclear reactors capable of powering factories, data centers and military bases. Electricity Info
• [New] Japan, India, South Korea, and Australia lead with active cyber defence laws and compulsory threat intelligence reporting for critical infrastructure. Research Nester
• [New] Japan will be able to export defence equipment and technologies to Canada, providing the Canadian military with an additional source of supply. Militarnyi
• [New] ING sees more downside potential for EUR / USD than upside for USD / JPY, as Japanese authorities will probably attempt another intervention in the 161/162 range. IndexBox Inc.
• [New] Potentially, if policy starts to favour national champions or politically important industries at the expense of returns on capital, it could pull against the reforms that have made Japan more attractive to overseas investors. TrustNet

Last updated: 27 June 2026