The US is reportedly pressuring Japan to "increase" defense spending, and Tokyo is considering a target of 3.5% of GDP, with the bond market and the yen coming under pressure first.

Zhito Finance APP has learned that, under pressure from the United States, Japan is considering setting a new medium-term defense spending target, planning to raise defense spending to 3.5% of gross domestic product (GDP), in line with NATO and other U.S. allies. Once this idea is implemented, it may trigger turmoil in the financial markets, as investors are currently deeply worried about Sanae Takaichi's fiscal spending plan.