Japan is to permit its companies to export lethal weaponry for the first time, in a landmark break with its pacifist stance, according to FT

Japan's decision to allow companies to export lethal weaponry marks a significant shift in its long-standing pacifist policy. This development may elevate regional tensions and could lead to increased defense spending, which typically benefits defense contractors and has broader implications for regional security dynamics. Investors might want to consider how this change impacts associated markets such as defense stocks, yen volatility, and neighboring countries' military postures.