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The Diet passed the 115.1978 trillion yen budget on the final day of fiscal 2024 after extensive revisions by the ruling coalition and negotiations with opposition parties. The process included amendments by both the Lower and Upper Houses, addressing measures such as free high school tuition and halting proposed increases in monthly out-of-pocket medical costs, while also involving scrutiny over a slush fund scandal.

Foreign investors drove Japanese long-term bond purchases to a two-year high, with net buys totaling 3.4 trillion yen, while short-term bonds experienced significant outflows amid concerns about U.S. tariff policies and falling equity markets. At the same time, Japanese investors retreated from foreign equities and long-term debt securities, offset slightly by purchases of short-term bills.

U.S. President Trump’s announcement of unexpected, extensive tariffs has sent shockwaves through global markets, leading investors to retreat into bonds, gold, and safe-haven currencies. The tariffs, particularly targeting key Asian economies and tech manufacturing hubs, caused steep declines in major stock indices and prompted fears of a potential recession in the United States.

Asian stocks tumbled on Monday as investors grappled with the uncertainty surrounding imminent US tariffs, with the S&P 500 futures plunging 0.6% and the Nikkei tumbling 3.2%. The lack of clarity on the form and scope of the tariffs fueled anxiety and sent ripples through global markets, raising concerns about a potential trade war and its impact on the global economy.

Researchers at Keio University have taken an encouraging step by transplanting neural cells derived from human induced pluripotent stem cells into patients with recent spinal cord injuries. Early clinical trials showed motor function improvement in half of the patients, prompting plans for expanded studies to verify the treatment's safety and efficacy.