Tag: Japan

Japan’s economy contracts after consumers, companies cut spending

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan’s economy contracted in the first quarter as consumers and companies reduced spending, underscoring the fragile nature of the recovery.

Gross domestic product shrank at an annualized pace of 2% in the three months through March, the Cabinet Office said Thursday. Economists had forecast a contraction of 1.2%. Private consumption and capital spending both retreated, while net exports also exerted a drag on growth.

The data reflected the negative impact of a New Year’s Day earthquake northwest of Tokyo and disruptions to auto production and sales after a certification scandal blew up at Daihatsu Motor Co., a subsidiary of Toyota Motor Corp. Other factors dragging on growth included a steady decline in household spending, as workers contending with persistent declines in real wages tightened their budgets.

There were positive developments as well. The first quarter also saw companies emerge from annual negotiations with unions pledging the largest wage hikes in three decades. The prospect of higher pay eventually boosting consumption was a factor behind the Bank of Japan’s decision to raise interest rates for the first time in 17 years in March.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan’s PM Kishida refuses to step down despite party’s defeat in special elections

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japanese Prime Minister Fumio Kishida said Tuesday his governing party’s major defeat in last weekend’s by-elections was largely due to a political fundraising scandal and that he would not step down or replace party executives to take responsibility.

Instead, Kishida said he will push anti-corruption measures and political reforms.

“As I take the results seriously, I believe as president of the governing party we must tackle the challenges we face one by one and achieve results, and this is the way I will take responsibility,” Kishida said. “By doing so, I will regain the people’s trust.”

Kishida said the scandal dealt “a big and heavy hinderance” to the party. The scandal centers on dozens of lawmakers in Kishida’s Liberal Democratic Party who allegedly pocketed profits from ticket sales to political events by falsifying accounting reports.

Asked if he would take responsibility for the election loss, Kishida denied he would step down or replace top LDP posts, and pledged to pursue party and political reforms, including a revision to the political funds laws. He also vowed to tackle economic issues.

The conservative Liberal Democratic Party lost all three seats in Sunday’s parliamentary by-elections in Nagasaki, Shimane and Tokyo. Kishida’s party only fielded its own candidate in Shimane, a conservative stronghold, while the liberal-leaning main opposition Constitutional Democratic Party of Japan clinched all three seats previously held by LDP.

The loss is seen as a punishment by voters for the governing party’s scandal, which erupted last year and has undermined Kishida’s leadership.

The party is unlikely to lose power because the opposition is fractured. But Sunday’s defeat marks a further setback for Kishida, who will seek reelection as his party’s leader in the fall.

Political analysts say Kishida was hoping to call a snap election possibly after the current parliamentary session ends in late June, seeking to receive a public mandate, and then win another term in the party presidential vote in September.

Kishida’s state visit to the U.S. earlier this month was perceived as a success, but Sunday’s losses could erode his clout and LDP lawmakers may try to bring him down in favor of a fresh face ahead of the next general election.

Such a move would make it difficult for Kishida to run for another three-year term in the party’s presidential race in September. As prime minister, he can call a snap election anytime before the current term for the lower house expires in October 2025.

Kishida on Tuesday denied he has plans to call for a snap election.

He has fought plummeting approval ratings since the corruption scandal broke. He has removed a number of Cabinet ministers and others from party executive posts, conducted internal hearings and drafted reform measures, but support for his government has dwindled to around 20%.

The scandal centers on unreported political funds raised through tickets sold for party events and involved more than 80 LDP lawmakers, mostly belonging to a major party faction previously led by assassinated former Prime Minister Shinzo Abe. Ten people — lawmakers and their aides — were indicted in January.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan’s oldest VC firm eyes 200% gain as unicorns proliferate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan’s oldest venture capital firm is closing in on a target to triple the value of its investment, a sign of resurgence in the country’s startup ecosystem.

Jafco Group Co. expects its newest SV7 fund’s total value to surpass paid-in capital by 2.5 times, as more portfolio companies go abroad, fetching higher valuations. The early-stage investor, which also backs unicorn-in-waiting Astroscale Holdings Inc., is pushing to lift the fund’s performance to a 200% return or more, which the 51-year firm sees as a prerequisite to compete for attention with big-league VCs abroad, Chief Executive Officer Keisuke Miyoshi said.

Jafco, which has backed more than 4,100 startups including SoftBank Group Corp.’s earlier iteration, is considering launching a Japan fund of at least ¥100 billion ($640 million), with fundraising to begin as early as next year. Jafco now oversees about ¥466 billion in assets.

The Tokyo-based investor is getting a lift from a growing pipeline of potential unicorns in the country. New pools of younger entrepreneurs and highly-talented workers from big-name firms are joining the ecosystem, bringing with them mindsets that have been lacking in Japanese startups, Miyoshi said in an interview.

“There’s a surge in the number of startups that are targeting market caps from several tens of billions of yen to more than 100 billion yen when they go public,” he said. “Japan is changing rapidly, with transformation occurring everywhere.”

Escalating geopolitical tensions, a cheap yen and low-cost financing are fueling that shift, directing overseas money away from China. At home, Prime Minister Fumio Kishida’s push to funnel more of the country’s savings into investments is beginning to bear fruit. That push includes a goal to encourage billions of dollars of investment into young companies and create 100,000 new startups and 100 unicorns by 2027.

At the same time, more entrepreneurs in Japan are recruiting foreign workers with a goal to expand globally. That’s helping them better assess overseas competition, prompting them to seek bigger growth and loftier valuations and avoid premature IPOs at home, Miyoshi said.

For years, most Japanese startups targeted their home market and struggled to attract global investors. The country’s risk money also was slow to flow into unproven companies, prompting most young companies to go public while still in early stages of growth. Japan’s securities laws make it easy for such companies to hold initial public offerings, contributing to the paucity of private companies that reach unicorn status and limiting VC returns.

A net multiple of 2.5 times at Jafco’s SV7 fund is modest by global standards, but would be among the highest returns at VC funds of comparable size incepted since 2010, according to data as of May last year compiled by private market research firm Preqin. The fund’s life ends in 2032.

“Japanese funds tend to be small in size, with a lot of the investments concentrated in early, seed-stage funding rounds,” said Shinichiro Shiraki, director at Japan Venture Capital Association.

As of October, Japan had seven privately-held companies valued at $1 billion or more, compared with 653 in the US, according to data compiled by CB Insights. China had 172, while India had 71.

Fund performance depends heavily on equity markets at the time of exit. Besides space debris collector Astroscale, Jafco’s also invested in jobs search platform Timee Inc., cooking recipe provider Dely Inc. and recycling tech developer Jeplan Inc.

Founded in 1973, Jafco typically seeks a 10% to 20% stake in companies. It’s now taking a more hands-on approach than in the past to boost returns and has helped companies it backs expand business and hire talent, according to Miyoshi.

“We’ll be using 50 years of Jafco’s networking and know-how to their fullest,” he said. “We want to demonstrate that the startup space is a compelling place to invest.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan’s Bonin Islands struck by 6.5 magnitude earthquake: USGS

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan’s Bonin Islands, on Saturday April 27, was struck by an earthquake of magnitude 6.5 , according to the United States Geological Survey (USGS).

The quake was at a depth of 503.2 km (312.7 miles), USGS said.

The US National Tsunami Warning Center said there was no tsunami warning from the quake, based on available data.

Earlier on April 17, the country was struck by a 6.3 magnitude earthquake near Kyushu and Shikoku islands.

With its reputation for high seismic activity, Japan is no stranger to earthquakes, contributing to around one-fifth of all earthquakes globally with a magnitude of 6 or above.

March 11, 2011, marked a significant disaster for Japan as the northeast coast was struck by a magnitude 9 earthquake, the strongest ever recorded in the country. This seismic event was followed by a colossal tsunami, resulting in the worst nuclear crisis since the Chernobyl incident twenty-five years prior.

(With inputs from Reuters)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This spicy, slurpy, steaming Japanese dish is more than just a tourist attraction

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In Tokyo, queuing for hours for a bowl of this savoury dish is a common sight. Despite its humble origins, a piping hot serving of ramen seldom disappoints, offering a comforting respite to its eager patrons.

Typically prepared before patrons’ eyes in modest eateries, ramen prices start at around 1,000 yen (₹450), boasting a variety of flavours and regional adaptations. From the classic salty “shoyu” or “miso” variations to fiery renditions infused with chili, ramen caters to diverse palates. Some variants even eschew soup entirely, opting for noodles dipped in a flavourful sauce.

Compared to the denser buckwheat noodles like “soba” or “udon,” ramen’s curly strands offer a lighter texture, further enhancing its appeal.

Beyond Japan, ramen’s popularity has soared, with the United States witnessing a 72% increase in retail sales since 2000, totaling over $1.6 billion in sales for the year ending April 13. The dish has found its way into diverse culinary landscapes, with restaurants offering innovative interpretations like Del Taco’s Shredded Beef Birria Ramen.

Also read: Most expensive food items in the world 2024 list — Check how much these rare eatables cost

While instant noodles provide a convenient alternative for home consumption, they pale in comparison to the authentic ramen experience found in restaurants. Momofuku Ando’s invention of instant ramen in 1958, amid post-war food scarcity, remains legendary in Japan, laying the foundation for Nissin Foods’ global success.

For enthusiasts like Frank Striegl, ramen isn’t just a meal—it’s an immersive cultural experience. Guiding tourists through Tokyo’s labyrinthine streets, Striegl introduces them to an array of ramen styles, encouraging exploration and education.

Reflecting on ramen’s enduring appeal, Striegl underscores its universal resonance, likening it to “people’s food” transcending cultural boundaries.

As tourists savour their miniature ramen servings, Striegl delves into the dish’s storied history, tracing its origins to ancient Japan and its evolution into a culinary phenomenon.

Also read: Why is Japan home to the world’s longest-living people? The secret’s in their food habits

For tour participant Katie Sell, ramen embodies comfort, particularly during winter months, fostering camaraderie and enjoyment among friends.

Despite its popularity, ramen establishments in Japan have faced challenges amid the pandemic, currency fluctuations, and rising costs. However, innovative solutions like home delivery services and packaged ramen kits offer a lifeline to struggling businesses.

Kenichi Nomaguchi, co-founder of Gourmet Innovation, highlights ramen’s global allure, positioning it alongside animation as Japan’s most successful exports. Nomaguchi attributes ramen’s complexity and depth of flavour to its intricate preparation, involving hours of simmering stock and a myriad of ingredients.

From traditional toppings like bean sprouts and barbecued pork to unconventional variations like coffee-infused ramen, the possibilities are endless. Jiro-style ramen, characterised by towering vegetable heaps and generous pork servings, exemplifies ramen’s fusion of taste and spectacle.

For Kota Kobayashi, proprietor of “Ore No Ikiru Michi,” ramen represents a way of life—an ethos that extends beyond culinary excellence. Kobayashi emphasizes the importance of ambiance and hospitality, ensuring patrons leave not just satisfied but entertained.

As customers return to his restaurant, Kobayashi’s warm greeting fosters a sense of belonging, epitomizing the spirit of ramen—a dish that transcends mere sustenance to become a cultural phenomenon cherished by all who partake.

(With inputs from AP)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan erects 8-foot wall to ward off tourists trying to take perfect image of Mount Fuji

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A charming town in Japan is taking drastic action to address the issue of overtourism as travellers flock a bustling convenience store to get the perfect photo spot of the iconic Mount Fuji.

Fujikawaguchiko, nestled at the base of the Yoshida Trail leading to Mount Fuji, has been overwhelmed by the influx of foreign visitors vying for snapshots of Japan’s iconic peak. Particularly popular is a viewpoint outside Lawson’s, a convenience store, offering a striking contrast between its neon-lit facade and the serene backdrop of the scenic mountain.

Faced with mounting issues of littering and disregard for traffic regulations despite repeated warnings and the presence of security personnel, local authorities have decided to install a large mesh barrier to obstruct the view, a CNN report reveals.

Also read: Misbehaving tourists force authorities in Japan to shut alleys of renowned geisha district

The decision to resort to such measures reflects the town’s frustration with the situation. An unnamed official lamented the necessity of the action, citing ongoing challenges with tourist behavior.

The mesh barrier, towering eight feet high and stretching 66 feet across, is scheduled for installation early next week, marking a symbolic effort to reclaim control over the town’s environment.

Located in Yamanashi prefecture, Fujikawaguchiko lies to the north of Mount Fuji, approximately 62 miles (100 kilometers) west of Tokyo. The town’s plight is emblematic of broader overtourism issues plaguing Japan since its reopening post-pandemic in late 2022.

Also read: As tourists flock to Japan, Tokyo to get a new immersive shopping and dining hotspot

March 2024 witnessed record-breaking tourism figures, with over three million foreign visitors entering the country, exacerbating the strain on Mount Fuji’s fragile ecosystem. The influx of tourists, drawn to the UNESCO World Heritage site, has led to environmental degradation and littering, prompting concerns among local authorities.

Masatake Izumi, a Yamanashi prefectural government official, highlighted overtourism as a pressing issue, describing it as the primary challenge confronting Mount Fuji. The mountain, revered as a national symbol, has sadly earned the moniker “trash mountain” due to the accumulation of waste left behind by careless visitors.

In response, Yamanashi’s prefectural government has implemented measures to mitigate overcrowding, including a daily hiker limit of 4,000 individuals and the enforcement of a mandatory fee of 2,000 yen ($13) per person, previously optional.

The decision to erect a barrier echoes similar actions taken elsewhere, such as in the Austrian town of Hallstatt, which faced a surge in tourism attributed to its resemblance to the animated film “Frozen”. In May 2023, Hallstatt installed a wooden fence to deter selfie-takers amidst concerns over unsustainable tourism practices.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan’s moon lander survives 3 months despite lack of preparation for lunar night

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan’s first moon lander has survived a third freezing lunar night, Japan’s space agency said Wednesday after receiving an image from the device three months after it landed on the moon.

The Japan Aerospace Exploration Agency (JAXA) said the lunar probe responded to a signal from the earth Tuesday night, confirming it has survived another weekslong lunar night.

Temperatures can fall to minus 170 degrees Celsius (minus 274 degrees Fahrenheit) during a lunar night, and rise to around 100 Celsius (212 Fahrenheit) during a lunar day.

The probe, Smart Lander for Investing Moon, or SLIM, reached the lunar surface on January 20, making Japan the fifth country to successfully place a probe on the moon. SLIM on January 20 landed the wrong way up with its solar panels initially unable to see the sun, and had to be turned off within hours, but powered on when the sun rose eight days later.

SLIM, which was tasked with testing Japan’s pinpoint landing technology and collecting geological data and images, was not designed to survive lunar nights.

JAXA said on the social media platform X that SLIM’s key functions are still working despite repeated harsh cycles of temperature changes. The agency said it plans to closely monitor the lander’s deterioration.

昨晩(4/23 夜)、再び起動した #SLIM と通信することに成功し、SLIMが３回目の越夜を達成したことを確認しました。早速航法カメラにて撮影した昨晩の月面の様子がこちらです。越夜後としてはこれまでで最も早い月齢での撮影のため、全体的に明るく影が非常に短くなっています。 #JAXA #たのしむーん pic.twitter.com/U0f88xNK9S

— 小型月着陸実証機SLIM (@SLIM_JAXA) April 24, 2024

Scientists are hoping to find clues about the origin of the moon by comparing the mineral compositions of moon rocks and those of Earth.

The message from SLIM came days after NASA restored contact with Voyager 1, the farthest space probe from Earth, which had been sending garbled data back to Earth for months.

A US lunar probe developed by a private space company announced termination of its operation a month after its February landing, while an Indian moon lander failed to establish communication after touchdown in 2023.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan ‘very close’ to currency intervention, former forex chief says

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan is on the brink of currency intervention if the yen weakens any further, according to one of the country’s former top currency officials.

“Amid no change in US and Japan interest rates, the yen has depreciated against the dollar quite rapidly,” said Mitsuhiro Furusawa, former vice minister of finance for international affairs, in an interview with Bloomberg on Tuesday.

“Should this trend continue, intervention will come,” Furusawa said, adding that “we are very close.” He cited market reaction to US data as a factor that may nudge Japanese authorities to act and pointed to last week’s joint statement between Japan, the US and South Korea as an indication that Tokyo’s allies won’t stop it entering the market.

The comments from the former finance ministry official come with Japan’s currency close to Tuesday’s fresh 34-year low of 154.88 against the dollar. Finance Minister Shunichi Suzuki reiterated Tuesday that authorities are prepared for action to address the situation.

The yen continues to look vulnerable with a Bank of Japan meeting this week and the Federal Reserve’s preferred gauge of inflation due out later on Friday.

Furusawa sees the possibility of the BOJ raising interest rates again as early as July, but, like almost all economists surveyed by Bloomberg, he expects no rate change on Friday.

Market participants and policymakers are wary that the widely expected stand-pat decision on Friday after last month’s historic rate hike may trigger another slide in the currency.

Allowing market players to push the exchange rate can’t be tolerated, Furusawa said. “No one thinks it’s a good idea to leave speculators unchecked,” he said.

Furusawa expects Japan’s authorities to step into the market before the currency reaches 160 yen to the dollar. Some market participants, such as Bank of America Corp., foresee the yen sliding further to 160.

Japan spent around $60 billion intervening in currency markets in September and October of 2022 when the yen approached the 146 and 152 levels.

Last week, Suzuki issued a rare joint statement with US Treasury Secretary Janet Yellen and South Korean Finance Minister Choi Sang-mok in Washington, stating that they would continue to consult closely on foreign exchange developments. The three nations also acknowledged the serious concerns felt by Japan and Korea over the recent sharp depreciation of their currencies.

“With the statement, it’s hard to imagine the US will stop Japan if it actually takes action,”said Furusawa, while noting that the statement does not give Japan a complete go-ahead to intervene.

The main factor behind the recent weak yen is the rate differential between Japan and US, according to Furusawa, who now heads the Institute for Global Financial Affairs at Sumitomo Mitsui Banking Corp. Furusawa previously served as the finance ministry’s top currency official from 2013 to 2014 before joining the International Monetary Fund as deputy managing director.

The difference in policy rates between the two countries looks set to remain unchanged until the summer at least, with surveyed economists flagging October as the most likely month for the BOJ to move again.

Governor Kazuo Ueda reiterated in parliament on Tuesday that it’s appropriate to maintain an accommodative environment for a spell, while in the US, Fed Chair Jerome Powell and other officials have signaled that it’ll take longer to cut rates.

“A July hike is a possibility if the bank is convinced it can raise rates after the effects of the income tax rebate and wage hikes are seen,” said Furusawa, referring to a one-off tax break for households dealing with elevated levels of inflation. Unions have secured their biggest annual pay raises in decades this year starting from April.

At its upcoming meeting, the BOJ is expected to project 2% price growth in the fiscal year beginning in April 2026, partly reflecting the optimism surrounding wages and prices. If the bank does so, that may support the case for a July move, Furusawa said. The BOJ could then hike again later in the year, he added.

Weakness in the yen could also be a motive for the bank to move if that starts to affect inflation, but changing monetary to correct currency trends would be difficult, he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Magnitude 6.3 earthquake strikes Japan, no tsunami warning

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan on Wednesday, April 17 was jolted by a magnitude 6.3 earthquake. The epicentre of the quake was situated in a channel flanked by Kyushu and Shikoku islands, about 18 kilometers west of Uwajima, with a depth of roughly 25 kilometers, according to the US Geological Survey.

The Japan Times reported that despite the quake, which struck at 11:14 pm, there were no tsunami warnings. Initial reports indicated only minor injuries and damage.

“In areas the jolt was strong, please don’t approach any dangerous areas. There is no risk of tsunami caused by this earthquake,” the Japan Meteorological Agency (JMA) said on social media platform X.

According to reports from NHK, the company managing the Ikata nuclear plant in Ehime prefecture, where one reactor is operational, confirmed that there were no abnormalities detected.

Speaking at news conference, Chief Cabinet Secretary Yoshimasa Hayashi stated that there were several light injuries reported. NHK also mentioned minor damages in certain areas, such as broken water pipes, fallen streetlights, and a landslide affecting a national roadway.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow