Markets & FX: Japan’s yen jumped as speculation grew that the BOJ and the government may step back into currency markets, while Tokyo stocks slid sharply on rising oil prices and a jump in long-term yields. Rates & Fiscal Pressure: Japan’s 10-year bond yield hit a 30-year high near 3%, driven by record budget requests and worries about fiscal discipline, feeding into broader bond-market stress. Corporate Cost Cuts: Honda told suppliers to slash prices as it targets about $9.4B in savings by 2030, focusing on key parts tied to software-defined vehicles and electrical components. Banking & Mortgages: Higher rates are pushing Japanese banks to rethink mortgage lending as funding costs and risk profiles change. Defense & Tech Spending: Japan is seeking 17 U.S.-made MQ-9B drones in a major FY2027 procurement to expand persistent surveillance in the Indo-Pacific, while Mitsubishi Heavy Industries and NEC plan AI-enabled homegrown defense drones and command systems. Energy Security & Geopolitics: Trump again cited Japan and South Korea in Alaska LNG plans as China’s naval footprint and regional tensions keep energy and shipping in focus. AI & Startups: SoftBank completed Japan trials of a stratospheric communications base station aimed at commercialization in 2027, and Intellisia raised 3.4B won to scale AI synthetic consumer tech.