Japan's manufacturing activity expanded in January for the first time in seven months, buoyed by the biggest rise in new export orders in more than four years, a private-sector survey showed, Reuters reported. The S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) increased to 51.5 in January from December's final reading of 50.0, marking a return to expansionary territory for the first time since June 2025. Readings above 50.0 indicate growth in activity, while those below point to a contraction.
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Japan's exports rose for a fourth straight month in December, government data showed on Thursday, as slower shipments to the U.S. were offset by strong demand elsewhere as well as by a boost to sales from the yen's decline, Reuters reported. Total exports by value rose 5.1% year-on-year in, data showed, less than a median market forecast for a 6.1% increase and after a 6.1% rise in November. Exports to the U.S. fell 11.1% in December from a year earlier, while those to China were up 5.6%, the data showed.
The Bank of Japan (BoJ) is expected to leave its benchmark interest rate unchanged at 0.75% after concluding its two-day monetary policy meeting on Friday, FXStreet reported. The central bank raised rates to a three-decade high in December. A pause now would allow policymakers to assess the economic impact of that move before tightening further. BoJ Governor Kazuo Ueda is expected to reaffirm the bank’s commitment to gradual policy normalization. Investors will closely scrutinize his press conference for clues on the timing and pace of future rate hikes.
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The number of corporate bankruptcies in Japan surpassed 10,000 for the second year in a row in 2025 as smaller businesses were hard hit by soaring labor costs and surging prices, Tokyo Shoko Research, a credit research firm, said on Monday, the Japan Times reported. The survey showed that the number of business failures with liabilities of ¥10 million or more grew 2.9% from the previous year to 10,300 in 2025, rising for the fourth consecutive year. Total liabilities left by failed companies dropped 32% to ¥1,592.3 billion.
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Japan's plan to give authorities the power to order foreign investors to retroactively divest acquisitions is aimed at sheltering major firms and supply chains, though it is unlikely to curtail increased M&A interest, experts say, Reuters reported. Japan on Wednesday proposed amendments to its foreign investment screening law that would grant authorities an option to force foreigners to sell investments deemed to pose risks to national or economic security.
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Bankers expect another blockbuster year for sales of yen-denominated corporate debt from Japanese companies following the record tally of bonds issued in 2025.
Rising yields and lower volatility compared with government bonds saw investors snap up ¥16.5 trillion ($105 billion) of local-currency corporate debt in the 12 months through December, the most in records back to 1999, according to data compiled by Bloomberg.
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Bank of Japan Governor Kazuo Ueda said on Monday the central bank will continue to raise interest rates if economic and price developments move in line with its forecasts, Reuters reported. Japan's economy sustained a moderate recovery last year despite the hit to corporate profits from higher U.S. tariffs, Ueda said in a speech delivered to the country's banking sector lobby. "Wages and prices are highly likely to rise together moderately," Ueda said, adding that adjusting the degree of monetary support will help the economy achieve sustained growth.
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Japan's manufacturing activity stalled in December as demand declined at a slower pace from the previous month, a private-sector survey showed, ending a five-month streak of deterioration, Reuters reported. The S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) was flat at 50.0 in December, improving from 48.7 in November and hitting the break-even point separating expansion from contraction. The decline in new orders in December was the softest since May 2024, the survey showed.
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