Japanese PM Takaichi says there is a dearth of domestic investment in Japan and will stop trend of austerity and lack of investment

• Pledges to drive a significant investment via multi-year budgets and long-term funding strategies.
• Affirms that essential expenditures will be maximised through the initial budget allocation.
• Affirms commitment to prudent fiscal policies to maintain market confidence.
• Aims for swift approval of crucial legislation, including tax reform, by the end of FY26/27.
• Government will unveil an investment roadmap for 17 strategic sectors beginning next month.
• Announced acceleration of nuclear reactor restarts.
• Cabinet's approach to fiscal policy will combine discipline with proactive measures.
• Japan to establish its own version of CFIUS to review and screen foreign investments.
• Will aim to compile an interim plan on sales tax cuts by early summer and promptly submit related tax reform bills for consideration.
• China seeks to change the status quo in maritime areas.

Japanese PM Takaichi's commitment to increasing domestic investment marks a shift away from austerity, which could fuel economic growth in Japan. Her plan to introduce multi-year budgets and enhance essential expenditures aims to bolster market confidence and address structural weaknesses, particularly significant for commodities and metals, as these sectors may benefit from increased fiscal activity and investment.