Japan News Update
Japan News Update — December 29, 2025
As the year winds down, Japan is at a pivotal moment in defence, economics, culture, and society. Here's your detailed, up-to-date Japan news roundup for December 29, 2025 — written for bloggers, journalists, and readers looking for insight, context, and shareable content.
1. Japan's Defense Spending Reaches New Heights
Japan's government has approved its largest defense budget in history as tensions increase regionally and globally. The new defense budget for fiscal 2026 stands at approximately 9.04 trillion yen (~$58 billion) — a 9.4% increase from the previous year. The allocation signals a sustained shift away from Japan's post-WWII pacifist posture toward a more assertive strategic stance in the Asia-Pacific.
Key elements of the boost investments in:
- Advanced coastal defense and counterstrike capabilities
- Unmanned drone systems for air, surface, and underwater missions
- Enhanced surveillance and reconnaissance tools to monitor regional threats
This defense buildup — aligned with a multi-year strategy to raise military spending close to 2% of GDP — responds to escalating Chinese military activities, concerns around Taiwan, and regional security challenges. Critics warn that increasing military budgets could reignite debates about Japan's pacifist Constitution, while supporters argue that deterrence is essential for national security.
2. Population Decline: Births Fall Far Below Projections
Japan's demographic challenges have deepened — the country's birth rate in 2025 is set to fall below even the most pessimistic official forecasts .
Projections now estimate fewer than 670,000 births this year , the lowest records since began in 1899. That's well below government predictions and significantly contributes to concerns about Japan's aging workforce and future economic vitality.
Contributing factors include:
- Delay in marriage rates
- Economic uncertainty discouraging family expansion
- Social attitudes toward work-life balance
This demographic contraction pressures government policies on immigration, pension systems, and workforce sustainability — forcing policymakers to face structural reforms sooner than expected.
3. Record Government Budget: Balancing Growth and Debt
In parallel with defense spending, Japan's Cabinet has approved a record 122.3 trillion yen (~$785 billion) national budget for fiscal 2026. The budget aims to:
- Boost economic growth post-COVID-19
- Support social programs for the elderly
- Promote sustainable energy transition and digital infrastructure
Despite being the largest in Japan's history, the government is promising fiscal responsibility by limiting new debt issuance and reducing debt-to-GDP ratios.
However, the rising cost of debt servicing — which is forecast to climb sharply due to higher interest rates — remains a central concern for investors and analysts alike.
4. Energy Shift: Nuclear Restart Clears Major Hurdle
Japan is moving forward with efforts to restart reactors at the Kashiwazaki-Kariwa nuclear power plant — the world's largest facility of its type. Local authorities in Niigata Prefecture have formally approved plans to reactivate units 6 and 7, representing a key step in Japan's energy policy shift.
After years of nuclear caution following the 2011 Fukushima disaster, this move illustrates how energy security and decarbonization priorities are rebalancing public opinion and policy.
TEPCO — the operator — now plans to submit final inspection requests for safety certifications with hopes the first restarts could occur as soon as early 2026.
5. Markets & Economy: Horse Racing and Yen Exchange
Financial and sports markets alike are making headlines:
- Japan's JRA (Japan Racing Association) announced strong annual results , with total betting turnover and attendance rising for the 2025 season — a sign of sustained public interest in horse racing and entertainment.
- In currency markets, the Japanese yen remains weak versus the US dollar , trading around ¥156 to $1 , reflecting ongoing global financial pressures and monetary policy shifts.
Meanwhile, investment analysts are closely watching Nikkei 225 trading ranges over the year-end holiday period , anticipating moderate volatility but healthy investor appetite as 2026 approaches.
6. Entertainment: Year-End Programming & Sports Fans
Japan's cultural calendar is packed at year's end:
- Music fans are tuning in to “Johsai Ichiban Mikiita Uta 2025” (Most Played Songs of 2025) — a special broadcast that outlines Japan's top musical hits of the year, spotlighting artists and trends that dominated streaming and airplay.
- Sports enthusiasts will be watching Rui Hachimura's Lakers game against the Sacramento Kings, reflecting continued Japanese interest in the NBA and international athletics.
- The annual KEIRIN Grand Prix (Keirin GP) cycling event continues, drawing fans and betting interest nationwide.
- Tokyo's Stardom Dream Queendom 2025 professional wrestling event is taking place on December 29, featuring top stars and marking one of the year's biggest events in Japanese pop-culture sports.
All of these events contribute to robust public engagement as Japan heads into the New Year.
7.Social and Breaking Headlines
In live news reports from TBS and other outlets, a mix of local crime, accidents, and social issues are making headlines:
- A tragic discovery in Tochigi Prefecture : a mother and child were found deceased in a river — police are investigating the cause as of early Monday.
- Other regional crime reports include stabbing incidents and assaults in urban centers, highlighting ongoing public safety concerns.
These types of stories continue to shape public discourse and influence community sentiment as 2025 ends.
8. Upcoming Travel Policy: New Fees for International Visitors
Looking ahead, Japan is planning to introduce a new pre-travel screening fee for foreign visitors under a future electronic travel authorization program. Set for implementation by fiscal 2028, the fee — estimated around 2,000–3,000 yen — aims to modernize border control and streamline international arrivals as tourism rebounds post-pandemic.
Summary
From record defense and national budgets to demographic crises , energy policy shifts , and year-end cultural highlights , Japan remains one of the most dynamic stories in global news today.
This December 29, 2025 update underscores challenges and opportunities — from geopolitics and economics to everyday society and entertainment — offering a full picture for readers interested in Japan's future as the New Year approaches.
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