Japanese PM Sanae Takaichi pushes economic‑security diplomacy as Nikkei hits record

Prime Minister Sanae Takaichi emphasized economic security as the core of Japan’s diplomacy during a G7 summit in France, proposing joint stockpiles of rare‑metal supplies and coordinated releases through the International Energy Agency. She warned that “the G7 expressed a united and serious concern about export restrictions on critical metals and economic coercion.”

Following the United States and Iran’s signing of a protocol to end their conflict, Japan’s Nikkei 225 surged 1,150.05 points to 71,052.30, marking a second consecutive day above the 70,000 threshold. Gains were driven by high‑technology shares and positive U.S. semiconductor news, including Intel’s launch of a new advanced‑etch production phase.

Takaichi also addressed a proposed consumption‑tax cut, suggesting a temporary 1 % VAT rate on food products for two years starting April 2027, with cash‑transfer compensation to offset the loss. While the plan aims to bolster household purchasing power amid rising living costs, opposition parties question its fiscal impact and market repercussions.