Japan's economic revitalisation minister, Minoru Kiuchi, called on the central bank to closely communicate with the government in setting monetary policy on Friday, but did not voice opposition to a near-term interest rate hike, Reuters reported. Asked about growing prospects of an interest rate hike by the central bank in December, Kiuchi said that specific policy means was for the Bank of Japan to decide.

Japanese household spending unexpectedly slumped at the fastest pace in nearly two years in October, government data showed Friday, raising concerns about the economic outlook as the Bank of Japan gears up for a rate hike as early as this month, Reuters reported. Consumer spending fell 3.0% in October from a year earlier, internal affairs ministry data showed, the first decrease in six months and falling at the steepest pace since January 2024. It was worse than the median market forecast for a 1.0% rise.

Japan's financial regulator is moving to mandate that crypto exchanges in the country maintain liability reserves to protect customers from losses stemming from hacks and security breaches, Decrypt.com reported. The Financial Services Agency plans to submit legislation to parliament in 2026 that would require exchanges to set aside reserves for compensating customers in the event of losses from cyberattacks or other incidents, The Nikkei reported on Monday.

A massive ¥21.3 trillion ($136 billion) stimulus package was approved by the Cabinet of Prime Minister Sanae Takaichi on Friday, the Japan Times reported. It’s the largest stimulus package since the pandemic, although it’s smaller than it might have been, with some legislators earlier pushing for ¥25 trillion of support. The package includes ¥17.7 trillion of spending, ¥2.7 trillion in tax breaks and ¥900 billion in special account spending.

Japan's exports rose more than expected in October for a second straight monthly gain, government data showed on Friday, underpinned by a milder fall in U.S.-bound shipments, resilient demand in other key markets and a weaker yen, Reuters reported. "Although the outlook of exports to the U.S. remains uncertain, it can be interpreted that the impact of U.S. tariffs has been limited," said Takeshi Minami, chief economist at Norinchukin Research.

Bank of Japan board member Junko Koeda signaled that there could be a rate hike as soon as next month by pointing to the need for normalization, after the yen hit its lowest level in roughly 10 months, Bloomberg News reported. "Given that real interest rates are currently at significantly low levels, I believe that the bank needs to proceed with interest rate normalization,” Koeda said Thursday in a speech to local business leaders in Niigata Prefecture.

Japan’s economy contracted at a 1.8% annual pace in July-September as President Donald Trump’s tariffs hit exports and private residential investment plunged, the Associated Press reported. Data released by the government Monday showed that on a quarter-by-quarter basis, Japan’s gross domestic product, the sum value of its goods and services, slipped 0.4%, the first contraction in six quarters. The annualized rate shows what the economy would have done if the same rate were to continue for a year.

Japan's Financial Services Agency (FSA) ​is considering regulations that would define ‌cryptocurrency as financial products subject to insider trading rules and ‌reduce the tax rate on profits, the Asahi newspaper reported on Sunday, according to Reuters. The regulations will apply to 105 types of cryptocurrencies available in Japan ⁠such as bitcoin ‌and ethereum, and would require exchange service providers to disclose information ‍such as the risk of price fluctuations, the paper said.

Prime Minister Sanae Takaichi on Friday instructed her Cabinet to look into revising the Economic Security Promotion Act given the changing geopolitical situation and rising economic threats, the Japan Times reported. “It’s been three years since the enactment of the Economic Security Promotion Act. Global affairs have continued to change with unprecedented speed and complexity,” Takaichi told a panel on promoting economic security.