US voices confidence in Japan fiscal discipline as Korea flags chip strength

· Finance · Japan · South Korea

A U.S. Treasury official said Washington has full confidence in Prime Minister Takaichi's fiscal discipline, offering reassurance to bond investors watching Japan's budget stance. Separately, South Korea's finance minister said semiconductor growth can last at least through 2027, with supply remaining tight despite a global chip sell-off. The two comments matter for markets because Japan's fiscal credibility underpins its large government bond market, while the chip outlook drives earnings and trade flows for two of Asia's largest exporting economies. Both remarks suggest policymakers see conditions holding up, even as investors weigh volatility in semiconductor shares and questions about Tokyo's spending plans.

Why it matters：Japan's fiscal credibility and Korea's chip cycle are two anchors of global bond and equity markets, so official confidence on both can steady cross-border capital flows.

Key points

  • A U.S. Treasury official said Washington has full confidence in Takaichi's fiscal discipline.
  • South Korea's finance minister said semiconductor growth can last at least through 2027.
  • Supply remains tight despite a global chip sell-off.

Sources (original reporting)

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