News & Insights

The second supplementary budget for FY2020 including an additional economic stimulus measure against COVID-19 has passed the Diet. The total size of the budget including the first supplementary budget is JPY 234 trillion (approx. USDk9y54; 2.2 trillion), which equates to 42% of GDP. In this commentary, we introduce the contents of the supplementary budget and its impact on the labor and stock markets.

This month's report looks at how Japan is tackling the pandemic and what the world my look like once it is over.

In recent years in Japan, consumption behavior has changed “from owning to using", and this is thought to be due to two factors. Below, we discuss these two factors in depth

“Regional revitalization”, or the so-called Regional Abenomics, that began in FY 2015, is about to enter its second term. At the time of its introduction, a trial calculation of “cities at risk of disappearing” was conducted, creating a sensation. The result prompted a sharp rise in the awareness of population decline, the falling birth rate and aging population in rural areas.

Comprehensive Economic Measures to Create a Future of Security and Growth On December 5th, 2019, the Abe Cabinet announced the launch of a large-scale economic stimulus package (“Comprehensive Economic Measures to Create a Future of Security and Growth”). This month, we take a look at the economic measures in detail and consider what the impact may be for the Japanese economy and the financial markets.

1. Japanese Economy 2. Japanese Monetary Policy 3. Foreign Exchange Market 4. Japanese Equity Market 5. Stocks of the month