Japanese Prime Minister Fumio Kishida pledged on Monday that Japan would take the lead in carbon removal efforts in Asia. Speaking at a multinational forum in Tokyo, which focused on discussing carbon removal measures, he addressed representatives from nine Southeast Asian nations, excluding Myanmar, and Australia. Kishida emphasized Japan’s aim to establish a large carbon removal market in Asia to attract global investments.
Kishida mentioned that an estimated $28 trillion is required for carbon removal in Asia. He committed to launching a new organization to support member states of the “Asian Zero Emissions Association” in implementing policies necessary to achieve carbon neutrality.
Financially, the head of Japan’s business lobbying group, Keidanren Masakazu Tokura, stated on Monday that the Bank of Japan should normalize its monetary policy as soon as possible. During the first day of the Bank of Japan’s policy-setting meeting, Tokura highlighted that the central bank’s negative interest rate policy should be phased out in the near future.
In the stock market, Japan’s Nikkei index closed lower on Monday, as investors cautiously awaited hints from Bank of Japan Governor Kazuo Ueda regarding a potential shift in its ultra-low interest rate policy.
The Nikkei index dropped 0.64% to 32,758.98 points, while the broader Topix index fell 0.66% to 2,316.86 points. The Bank of Japan is holding a two-day monetary policy meeting, concluding on Tuesday. Market participants are waiting for any comments from Ueda on the timing of policy changes, even though there is a consensus that the Bank of Japan will maintain its policy unchanged in this meeting.
Meanwhile, shares of Japan Post surged 5.3%, marking their biggest rise since May 2022, following the government’s proposal to increase the maximum postal fee for standard-size letters. According to Bloomberg, the Ministry of Internal Affairs and Communications proposed raising the maximum fee for standard letters weighing up to 25 grams from 84 yen to 110 yen per letter, along with increasing fees for mail shipments under 50 grams and postcards.
An analyst from Citigroup, Koichi Niwa, commented that this proposal is positive and would help improve the company’s profitability in the future.
