🚨 BREAKING — JAPAN MACRO UPDATE (Dec 26, 2025) 🇯🇵
Japan just dropped a high-stakes budget signal, and global markets are paying attention.
💼 ¥122.3T ($785.4B) Draft Budget
Prime Minister Sanae Takaichi moved to steady investor nerves, balancing growth support with fiscal credibility.
This comes on top of last November’s ¥21.3T stimulus aimed at easing household cost pressures.
📊 Key Metrics Markets Are Watching • 📉 New JGB issuance capped at ¥29.6T
• 📉 Debt reliance ratio at 24.2% — lowest since 1998
• 🎯 Shift toward targeted, long-term strategic spending
🧠 What’s the Signal? ❌ Not aggressive easing
❌ Not austerity
✅ A calculated, disciplined middle path
Takaichi emphasized fiscal control while supporting growth, aiming to preserve confidence in Japan’s reflationary roadmap.
⚠️ Why Caution Remains Private-sector economists — including former BOJ Deputy Governor Masazumi Wakatabe — want: • Clear timelines
• Credible plans to gradually reduce debt-to-GDP
📌 Bottom Line Japan is walking a tightrope: Growth support 🧩 vs. long-term credibility ⚖️
Markets remain on edge.
📉 Market Reaction 🔻 $0G — 0.983 (-7.35%)
🔻 $IR (IRUSDT Perp) — 0.13907 (-14.42%)
👀 $ZBT — volatility watch
