Japan grapples with ageing, corporate retreat from China and market milestones

2026-10-06 · Economy · Japan

New data shows the elderly outnumber children in nearly all Japanese prefectures, underscoring the country's demographic squeeze. Japanese companies are leaving China at a record pace as a diplomatic freeze and slowing economy force reassessments, while century-old businesses are disappearing at record rates amid rising costs, labour shortages and succession challenges. The Nikkei 225 touched 70,000 for the first time in three months, and the Bank of Japan is set to declare underlying inflation has reached 2% as early as Oct. 30. Japanese chipmaker Rapidus is set to tie up with 17 firms.

Why it matters：Japan's demographic and corporate shifts affect global supply chains, investment and monetary policy.

Key points

• The elderly outnumber children in nearly all Japan prefectures.
• Japanese firms are exiting China at a record pace.
• The Nikkei 225 touched 70,000 for the first time in three months.

Sources (original reporting)

• Nikkei Asia
• The Straits Times
• CNBC
• NHK
• The Japan Times
• Bloomberg

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