During his stay in Japan, Macron signed a cooperation roadmap covering critical minerals and defense, and held talks with Prime Minister Sanae Takaichi, alongside a meeting with the imperial couple.

He also praised Europe’s “predictability,” in comments widely interpreted as a contrast with recent U.S. policy decisions.The remarks followed criticism from Trump, who described France as “very unhelpful” in the Iran conflict and made personal jibes at Macron.

The exchange highlights growing transatlantic friction as the war continues to reshape global alliances.Macron’s visit to South Korea comes amid heightened geopolitical and economic uncertainty, particularly linked to disruptions in the Strait of Hormuz, a vital route for global energy supplies.

The waterway’s effective closure has driven up oil prices and strained import-dependent economies across Asia.South Korean President Lee Jae Myung called for deeper cooperation with France in an opinion article, emphasizing collaboration in artificial intelligence, nuclear energy, hydrogen technologies and space.

“In an increasingly fragmented and uncertain international environment, partnerships between democratic nations are becoming strategically essential,” Lee wrote.

Seoul has already introduced a fuel price cap to cushion the economic impact of rising energy costs, marking its first such intervention since 1997.Macron’s itinerary in South Korea includes a bilateral summit with Lee, participation in an economic forum, and a visit to a Korean War memorial honoring French troops.

The trip also features cultural engagements, including a dinner with figures from the country’s film and music industries.

The visit underscores France’s effort to deepen ties in the Indo-Pacific while navigating diplomatic strains with Washington over the direction and handling of the Iran conflict.

An individual claiming to be an active-duty officer of the Japan Self-Defense Forces scaled a wall and entered the Chinese Embassy in Tokyo earlier in the day, Chinese foreign ministry spokesperson Lin Jian said at a regular press briefing.

Lin said the individual admitted the act was illegal and threatened to kill Chinese diplomatic personnel “in the name of God,” prompting what Beijing described as shock and concern over the safety of its staff.

China called on Japan to conduct a thorough investigation, hold those responsible accountable and ensure the security of Chinese embassies and consulates.

JJapan’s defence ministry did not immediately respond to requests for comment regarding the incident or the alleged affiliation of the individual involved.

The incident comes against a backdrop of deteriorating relations between China and Japan. Tensions have risen since Japanese Prime Minister Sanae Takaichi suggested that a potential Chinese attack on Taiwan could prompt a military response from Tokyo.

Japan is also expected to downgrade its description of bilateral ties in an upcoming diplomatic report, citing a series of confrontations over the past year, while Beijing has reiterated calls for Tokyo to withdraw what it views as provocative remarks.

Speaking on a Fuji TV programme, Motegi said such a move would be contingent on a “complete ceasefire” and the presence of naval mines obstructing navigation. He described the scenario as hypothetical, adding that minesweeping could be considered if maritime protection conditions required it.

Japan’s ability to deploy forces overseas is restricted by its postwar pacifist constitution, though security legislation enacted in 2015 allows the use of the Self-Defense Forces if an attack on a close partner threatens Japan’s survival and no alternative measures are available.

Motegi said Tokyo has no immediate plans to negotiate specific arrangements for stranded Japanese vessels to transit the waterway, stressing instead the importance of restoring conditions that allow safe passage for all ships.

Japan relies on the Strait of Hormuz for roughly 90% of its oil imports, underscoring the strategic importance of the route. The strait has been largely closed by Iran during the ongoing conflict, now in its fourth week, contributing to a surge in global oil prices.

The disruption has prompted Japan and other countries to release oil from strategic reserves to stabilise supply.

Iranian Foreign Minister Abbas Araqchi said on Friday he had discussed with Motegi the possibility of allowing Japanese-linked vessels to pass through the strait, according to Japan’s Kyodo news agency.

Meanwhile, U.S. President Donald Trump met Japanese Prime Minister Sanae Takaichi in Washington on Thursday and urged Japan to increase its role in efforts to reopen the waterway. Takaichi said she briefed Trump on the scope of support Japan could provide under its legal framework.

Speaking on a Fuji TV programme, Motegi said minesweeping could be an option if naval mines obstruct shipping lanes following a “complete ceasefire,” stressing that any such step would depend on conditions stabilising in the waterway, a conduit for roughly a fifth of global oil shipments.

Japan’s potential involvement would be constrained by its postwar pacifist constitution, which restricts military activity abroad. However, security legislation enacted in 2015 allows overseas deployment of the Self-Defense Forces if a crisis threatens Japan’s survival and no alternative measures are available.

Motegi said Tokyo had no immediate plans to pursue arrangements to secure passage specifically for Japanese vessels, but emphasised the importance of restoring safe navigation through the strait. Japan relies on the route for around 90% of its oil imports, leaving it highly exposed to disruptions.

The near-closure of the Strait of Hormuz amid the ongoing conflict has contributed to a surge in global oil prices, prompting Japan and other countries to release crude from strategic reserves.

Iranian Foreign Minister Abbas Araghchi told Japan’s Kyodo news agency he had discussed with Motegi the possibility of allowing Japan-linked vessels to transit the strait.U.S. President Donald Trump has urged allies, including Japan, to increase their role in securing the waterway, though Tokyo has so far signalled limits based on its legal framework.

Prime Minister Sanae Takaichi said she had briefed Trump on the scope of support Japan could provide under domestic law.

Separately, Motegi said one of two Japanese nationals detained in Iran had been released on Wednesday and would return to Japan. He said the release followed repeated diplomatic representations to Tehran, while confirming that a second Japanese citizen remains in custody.

The exchange was seen as an important step in reassuring Tokyo of continued U.S. support during a moment of heightened regional tension.

Takaichi had earlier remarked in parliament that a potential Chinese attack on Taiwan could prompt Japanese military action.

Her comment triggered a strong reaction from Beijing, including a suspension of group travel to Japan and sharp diplomatic criticism.

Taiwan sits just over 100 kilometres from Japanese territory, and its security situation directly influences Japan’s strategic environment.

China continues to claim Taiwan as its own, while the island’s government rejects this position and insists its future must be determined only by its own people.

Trump has not publicly addressed the diplomatic dispute, leading some analysts in Japan to express concern about Washington’s position.

However, following the call, Takaichi stressed that the U.S. president assured her of a close working relationship and encouraged her to reach him anytime.

She said Trump initiated the call and briefed her on the status of U.S.-China relations, including his recent discussion with Chinese President Xi Jinping.

According to Takaichi, Trump highlighted ongoing dialogue with Beijing and reaffirmed strong bilateral ties between Washington and Tokyo.

Meanwhile, Xi conveyed to Trump that Taiwan’s “return” is central to China’s long-term vision, according to official reports from Beijing.

Trump later noted progress in trade discussions with China but did not publicly mention any Taiwan-related issues.

Japanese officials were relieved that Trump contacted Takaichi shortly after his call with Xi.

Government sources described the timing as significant, reflecting Japan’s continued priority in U.S. foreign policy considerations.

Taiwan’s Premier Cho Jung-tai reiterated that returning to China is not an option for the island’s 23 million residents.

Japan’s Chief Cabinet Secretary Minoru Kihara also emphasised that stable U.S.-China relations are vital for the wider international community, including Japan.

Japan continues to strengthen its defence capabilities as regional competition intensifies.

Encouraged by the U.S., Tokyo has expanded military spending and positioned new defence units closer to Taiwan.

China criticised Japan’s plans to deploy a medium-range missile unit to Yonaguni, the island nearest Taiwan.

Beijing described the move as an attempt to escalate tension and provoke confrontation in the region.

Japan recently scrambled a fighter jet after detecting a Chinese drone flying near its southwestern islands.

These incidents underline the increasingly complex security dynamics Tokyo is navigating.

While Takaichi has refused to retract her remarks on Taiwan, Japan insists it is open to dialogue with China at all levels.

Diplomatic meetings have continued, including talks between Japan’s vice foreign minister and China’s ambassador in Tokyo.

However, China declined the possibility of a meeting between Takaichi and Premier Li Qiang during the recent G20 summit.

Analysts believe this signals a difficult period ahead for Japan-China relations under Takaichi’s leadership.

Some Japanese officials also remain cautious about Trump’s long-term stance on Taiwan.

Analysts note that the U.S. administration could prioritise trade negotiations with China in ways that may affect regional security calculations.

A senior professor of U.S. politics in Japan wrote that understanding these risks is essential for shaping Japan’s approach to China.

Tokyo’s foreign minister stated that the government is not worried about Trump’s silence, noting the U.S. does not comment on every issue publicly.

Japan continues to balance diplomacy, defence, and regional partnerships as it faces one of the most sensitive geopolitical challenges in East Asia.

The recent call between Takaichi and Trump aims to reassure Japanese policymakers as tensions with Beijing remain unresolved.

With energy prices driving inflation and burdening households, Takaichi’s policies aim to balance economic stability, environmental responsibility, and national resilience.

A Pro-Nuclear Vision for a Sustainable Future

Takaichi, known for her pragmatic and forward-looking approach, has long been an advocate of nuclear energy and next-generation fusion technology.

Her leadership signals a major push toward reviving Japan’s nuclear fleet, which she views as essential for cutting fuel import costs, reducing carbon emissions, and achieving long-term energy independence.

Following the Fukushima disaster in 2011, Japan’s nuclear sector saw years of hesitation and slow restarts. Of the 54 reactors previously in operation, only 33 remain technically operable, and just 14 have been restarted so far.

Takaichi’s government plans to accelerate the approval process for safe reactors, ensuring compliance with strict safety standards and community engagement.

“We aim to proceed with nuclear restarts while taking concrete steps to gain the necessary understanding of local communities and stakeholders,” said Ryosei Akazawa, Japan’s newly appointed Minister for Economy, Trade, and Industry.

Strengthening Ties with the U.S.

Takaichi’s appointment of Akazawa, a fluent English speaker and experienced negotiator of Japan-U.S. trade agreements, highlights her commitment to strong international cooperation, especially with Washington. Analysts see this as a sign that Japan will continue deepening energy and trade relations with the U.S.

Her government is preparing an energy package to present during U.S. President Donald Trump’s visit to Tokyo next week. The package includes additional liquefied natural gas (LNG) purchases from American suppliers, demonstrating Japan’s willingness to diversify energy sources while maintaining economic diplomacy.

However, Tokyo remains cautious about committing to the $44-billion Alaska LNG project, preferring a balanced approach that avoids overreliance on any single source.

Tackling Inflation Through Energy Reform

Japan spent an estimated 10.7 trillion yen ($71 billion) last year on imported LNG and coal — around 10% of the country’s total import costs. With 60% to 70% of Japan’s electricity generated from imported fossil fuels, energy prices have been a key driver of inflation and public frustration.

By restarting nuclear reactors and investing in domestic technologies, the Takaichi administration hopes to stabilize energy prices, cut emissions, and boost industrial productivity.

Lower electricity costs could ease pressure on both households and small businesses while supporting the competitiveness of Japanese manufacturing and data-driven industries.

Embracing Innovation and Energy Diversification

While nuclear power remains central to her strategy, Takaichi also emphasizes technological innovation and energy diversification.

She supports the development of perovskite solar cells, an emerging Japanese innovation that could redefine solar energy efficiency and become a valuable export technology.

However, she has expressed skepticism toward massive solar and wind projects, especially those dependent on imported Chinese components.

Instead, she aims to promote smaller-scale, domestically developed renewable technologies that align with Japan’s economic and environmental goals.

Industry analysts note that her approach could shift investment focus toward homegrown innovations, such as advanced nuclear and fusion technologies, which could make Japan a leader in clean, reliable energy.

A Balanced and Future-Oriented Energy Policy

Takaichi’s energy agenda reflects a balanced vision—one that acknowledges the importance of renewables but prioritizes energy reliability and national security.

Her stance on nuclear restarts is supported by many experts who argue that Japan cannot meet its decarbonization and affordability goals without restoring its nuclear capacity.

“Prime Minister Takaichi will almost certainly push for a more ambitious nuclear reactor relaunch,” said Henning Gloystein, managing director at Eurasia Group. “This will help bring down power prices while reducing dependence on imported fuels.”

As Japan faces growing energy demands from data centers, industry expansion, and climate goals, the Takaichi administration’s policies mark a turning point.

By combining nuclear innovation, international cooperation, and domestic research, Japan is positioning itself for a sustainable, secure, and economically vibrant energy future.

In the years ahead, Takaichi’s leadership may restore public confidence in nuclear technology and reaffirm Japan’s global role as a clean-energy pioneer—proving that a nation once scarred by disaster can emerge stronger, safer, and more self-reliant through bold, science-driven reform.

Sanae Takaichi poised to become Japan’s next prime minister, investors are celebrating record highs in the Nikkei, while confidence grows in Japan’s economic momentum and future growth.

Japanese financial markets are entering an optimistic phase following the election of Sanae Takaichi as leader of the ruling Liberal Democratic Party (LDP), setting the stage for her to become Japan’s next prime minister.

Investors welcomed Takaichi’s victory as a vote of confidence in expansionary fiscal and monetary policies, sparking a wave of positivity in equities and reinforcing Japan’s reputation as a resilient, growth-oriented economy

The benchmark Nikkei 225 index has already begun reflecting this sentiment, reaching an all-time closing high of 45,769.50 last Friday, surpassing the previous record set just a week earlier.

Market analysts attribute this rally to both renewed investor confidence in Takaichi’s pro-growth agenda and the unwinding of short positions, which has added momentum to the stock market.

Resona Holdings strategist Hiroki Takei called the market response a “positive surprise” for stocks, noting that continued optimism could propel the Nikkei even higher, potentially approaching the 47,000 level in the coming months.

Takaichi, 64, has consistently advocated policies inspired by “Abenomics,” the highly regarded economic program of former Prime Minister Shinzo Abe, emphasizing fiscal stimulus, strategic government investment, and incentives for private-sector growth. Her platform prioritizes demand-driven inflation supported by rising wages and strong corporate profits—an approach welcomed by investors seeking sustainable economic expansion.

While some segments of the market, particularly longer-term Japanese government bonds (JGBs), have experienced short-term volatility, this is largely a reflection of the market’s adjustment to new opportunities rather than a cause for concern. Shorter-dated JGBs have shown trends consistent with healthy economic activity, and analysts suggest that any temporary increases in yields signal confidence in Japan’s ability to manage debt while pursuing growth-oriented policies.

James Athey, fixed income manager at British investment group Marlborough, emphasized that Takaichi’s measured communication on fiscal and monetary policy reassures markets while maintaining flexibility to respond to evolving economic conditions.

The Japanese yen also experienced fluctuations in the wake of Takaichi’s victory, closing at 147.44 per U.S. dollar last Friday with a weekly gain of 1.4%.

Rather than signaling instability, these movements reflect the dynamic adjustment of currency markets to stronger economic prospects, with investors responding to Japan’s anticipated acceleration in demand-driven growth.

Takaichi herself underscored the importance of coordinated efforts between the government and the Bank of Japan (BOJ) to support sustainable economic expansion. In a press conference following her election, she highlighted the need for policies that promote wage growth, strengthen corporate performance, and enhance consumer confidence.

By fostering an environment conducive to innovation and investment, Takaichi’s leadership is expected to create new opportunities across sectors, boosting both domestic and international investor confidence.

The so-called “Takaichi trade,” which emerged prior to the LDP leadership contest, reflected widespread optimism among investors, with a focus on equities and strategic positioning in anticipation of pro-growth policies.

This sentiment, coupled with Japan’s strong fundamentals, has reinforced the view that the country’s economy is well-positioned to sustain long-term growth, offering opportunities for both domestic and international investors.

Analysts are particularly encouraged by Japan’s ability to balance growth-oriented fiscal policies with prudent economic management. Takaichi’s pragmatic approach—emphasizing targeted stimulus while maintaining long-term stability—has been positively received across global markets.

The combination of strong corporate performance, rising wages, and supportive monetary policy creates an environment in which both businesses and consumers can thrive, driving confidence in the nation’s economic trajectory.

In summary, Sanae Takaichi’s election as LDP leader has energized Japanese markets, with the Nikkei reaching record highs and investor sentiment buoyed by the promise of sustainable growth.

As the nation looks ahead to her premiership, confidence in Japan’s economy continues to strengthen, highlighting the country’s resilience, adaptability, and enduring appeal as a global investment hub.

For the first time in modern history, Japan could see either its first female leader or its youngest prime minister in well over a century.

The front-runners in the race are Sanae Takaichi, 64, a conservative lawmaker and former internal affairs minister, and Shinjiro Koizumi, 44, a rising political star and son of former Prime Minister Junichiro Koizumi. Cabinet Secretary Yoshimasa Hayashi, also 64, remains a significant contender, though polling suggests the real contest lies between Takaichi and Koizumi.

The leadership vote comes after Prime Minister Shigeru Ishiba announced his resignation following a series of electoral setbacks. While the LDP has long dominated Japanese politics, recent defeats have weakened its majorities in parliament, creating an urgent need for renewal and public confidence.

Despite the party’s internal challenges, the leadership race is being hailed as a rare opportunity for fresh energy at the top of Japanese politics. “Koizumi and Takaichi offer two very different but equally transformative approaches,” said Tina Burrett, professor of political science at Sophia University. “Koizumi represents generational change and the possibility of consensus-building, while Takaichi represents historic change through breaking the gender barrier in Japan’s highest office.”

If elected, Takaichi would make history as Japan’s first female prime minister. A close ally of former Prime Minister Shinzo Abe, she has pledged bold economic reforms, including major government investment in technology, food security, and infrastructure. Her platform seeks to double the size of Japan’s economy within a decade through a proactive state-led approach.

Koizumi, meanwhile, could become the youngest Japanese leader in modern times, just a few months older than Hirobumi Ito was when he took office in 1885 under Japan’s prewar constitution. Known for his charisma and reformist appeal, Koizumi has gained strong support among the LDP’s 295 lawmakers. He emphasizes moderate reforms, tax relief to ease living costs, and policies aimed at connecting more effectively with younger voters.

Grassroots LDP members, however, are leaning toward Takaichi, according to recent surveys, highlighting the balance of power that could decide Saturday’s outcome. If no candidate wins outright in the first round, a run-off will determine the final result.

For Japan, the leadership transition comes at a time of both challenges and opportunities. The economy has slowed, and younger voters have shown growing dissatisfaction with traditional politics, opening the door for alternative parties. Yet, the prospect of a woman or a youthful leader at the helm of the ruling party is seen as a revitalizing force.

Internationally, the leadership race has also drawn attention. The new prime minister is expected to host U.S. President Donald Trump in Tokyo at the end of October, a high-profile diplomatic engagement that will test the incoming leader’s global standing from the outset. Trade and economic security will be central themes, with Takaichi signaling openness to renegotiating aspects of Japan’s existing investment agreement with Washington if necessary.

Regardless of who wins, analysts agree that the next leader will inherit both the responsibility of rejuvenating the LDP and the opportunity to reintroduce Japan as a dynamic force on the world stage. James Brown, professor at Temple University in Tokyo, observed: “This leadership election is not only about Japan’s immediate political direction, but about signaling to the world that the country is ready to embrace renewal.”

With voters seeking change, and the possibility of groundbreaking leadership on the horizon, Saturday’s LDP election could mark a turning point in Japan’s modern political history. Whether through the symbolism of electing the first woman to lead the nation or the energy of its youngest prime minister in generations, the result promises to shape both Japan’s domestic future and its role on the global stage.