Japan pushes record defence budget as regional tensions rise, amid currency dip and diplomatic protests

Japan’s defence ministry plans to ask the finance ministry for a record 8.9 trillion-yen (about $56 billion) budget for fiscal 2027, citing growing regional threats and new forms of warfare; many line items remain unpriced, so the final allocation may increase during year-end talks. The request will be filed before the end of August. In parallel, the U.S. dollar slipped past the 157-yen mark after a surprisingly weak jobs report showed non-farm payrolls falling by 23,000 in July and unemployment improving to 4.1 percent.

Tokyo’s foreign ministry formally protested South Korea after confirming a Korean survey ship lowered a wire in Japan’s exclusive economic zone near contested islets. The government also unveiled guidelines extending publicity rights to protect celebrities’ voices from AI-generated deepfakes. A Japan-China student conference was held in Hong Kong despite Beijing’s pressure, while Kashima Antlers won a 4-3 comeback in the J1 season opener thanks to Aleksandar Cavric’s late goals. Taiwan demonstrated fighter-jet scramble capabilities at Hsinchu Air Base during its Han Kuang drill, and five caskets bearing anti-China slogans were discovered in Manila, prompting a protest from Beijing.