An opening attempt to cool tensions between China and Japan appears to have fallen flat, signaling that the diplomatic spat is likely to drag on and stoking concerns about further strain in economic ties.

Japan has experienced record levels of tourism since the end of COVID-era lockdowns, with arrivals increasing by 48 percent last year. Neighboring China is one of the largest sources of visitors, accounting for 775,500 arrivals in September alone, or 23.7 percent of the total, according to Japan Tourism Agency data.

Also in today’s newsletter, Philippine corruption scandal escalates, and US House votes to release Epstein files

The first formal meeting between BOJ Governor Kazuo Ueda and new Prime Minister Sanae Takaichi could shape Japan's interest rate strategy. With market focus on potential rate hikes and currency volatility,

Japan’s economy contracted for the first time in six quarters, supporting Prime Minister Sanae Takaichi’s case to compile an ambitious economic stimulus package.

Japan has urged its citizens in China to heighten safety precautions as tensions with Beijing over Taiwan escalate. The Japanese embassy advised respecting local customs, being cautious in interactions,