Japanese Economic and Fiscal Policy Minister Kiuchi sees strong momentum in this year's wage negotiations and improvements in job conditions

• Effect of government steps slightly to underpin moderate economic recovery.
• Must be vigilant to the impacts on the economy from the Middle East conflict.
• Government will act nimbly while keeping a close eye out on economic fallout from the Middle East conflict and the effect of price rises on households and business activity.

Japanese Economic and Fiscal Policy Minister Kiuchi's comments highlight a positive outlook on wage negotiations and job conditions, which suggests potential upward pressure on domestic consumption. His caution regarding global geopolitical risks, particularly the Middle East conflict, indicates the government is prepared to respond to economic shocks, which could influence central bank policy if inflationary pressures rise from external price increases.