Japan Market Daily | Kabutaro & Friends

Rising tensions in the Middle East have pushed up energy prices, strengthening global inflationary pressures once again. In China, the PPI has turned positive for the first time in 41 months, signaling early signs of exiting deflation, although domestic demand remains weak. In Japan, the fiscal 2026 budget has reached a record scale, and corporate bankruptcies have risen to a 12‑year high due to higher prices and labor costs. Overall, geopolitical risks and rising costs are increasing uncertainty in the global economy.