June 29, 2026, proved to be a remarkably eventful day for Japan, with major stories breaking across transport, politics, the economy, and national security.
Train Derailment at Kyoto Station
A local train derailed at Kyoto Station early Monday morning, disrupting travel for tens of thousands of passengers. The four-car Kintetsu Kyoto Line train, which was the day’s first service bound for Kashiharajingu-mae Station in Nara Prefecture, came off the tracks at approximately 5:13 a.m.. An NHK camera installed near the station captured the train’s second and third cars leaving the rails shortly after departure.
Kintetsu Railway reported that the train was carrying about 10 to 30 passengers. No injuries were reported among passengers or crew. Service between Kyoto and Kamitobaguchi stations was suspended, and as of the afternoon, no resumption time had been announced. The accident was estimated to affect approximately 85,000 passengers.
Takaichi Cabinet Approval Rating Hits Record High
According to a nationwide poll conducted by Nikkei Inc. and TV Tokyo from June 26 to 28, Prime Minister Sanae Takaichi’s cabinet approval rating reached 68%, up 2 percentage points from May. This marks the ninth consecutive month the approval rating has remained in the high 60s, setting a record for the longest such streak since the current survey method was adopted in 2002. The disapproval rate stood at 27%.
Among ruling Liberal Democratic Party supporters, 94% backed the cabinet, while support among independent voters rose 7 points to 52%. By age group, the highest support — 78% — came from respondents under 39. The survey sampled 939 eligible voters nationwide via random-digit dialing, with a response rate of 41.3%.
Yen Hits Four-Decade Low
The Japanese yen slid to its weakest level against the U.S. dollar since 1986, breaching the 161.95 mark touched in July 2024. The currency weakened to approximately 161.96 per dollar, a historic slide that has rattled markets and put traders on alert for possible government intervention. The Bank of Japan had raised its benchmark interest rate to 1% on June 16 — the highest since 1995 — but the impact on the yen’s decline remained minimal.
China Expands Export Controls on Japanese Entities
In a significant escalation of bilateral tensions, China’s Ministry of Commerce announced new export controls on 40 Japanese entities on Monday. According to the ministry, 20 Japanese entities were added to an export control list, while another 20 were placed on a monitoring list. The measures target dual-use items and were justified by Beijing as opposition to what it called Japan’s “remilitarization”.
Japan’s Chief Cabinet Secretary Minoru Kihara lodged a formal protest with China, demanding the measures be withdrawn. The list includes major defense-related organizations such as the National Institute for Defense Studies.
Japan Launches J-CFIUS Foreign Investment Screening Committee
The Japanese government formally established and began operating the Japan Committee for Foreign Investment (J-CFIUS) on Monday — a Japanese version of the U.S. CFIUS designed to screen foreign investments through a national security lens. The committee is co-chaired by the Ministry of Finance and the National Security Secretariat, with participation from the Ministry of Economy, Trade and Industry and the Ministry of Defense.
The launch follows amendments to the Foreign Exchange and Foreign Trade Act passed during the current Diet session. Under the new framework, Japan expanded pre-screening to include indirect equity holdings and can now scrutinize transactions involving high-risk investors such as foreign governments or state-controlled enterprises. Prime Minister Takaichi stated that the committee would “enhance predictability for foreign investors, thereby contributing to both promoting sound investment and ensuring economic security”.
Missile Deployment on Easternmost Island
Japan’s Ground Self-Defense Force deployed a Type-12 surface-to-ship missile launcher and related equipment on Minamitorishima — the nation’s easternmost island — for the first time. The GSDF announced the deployment in a social media post, stating the equipment was transported to the remote island as part of preparations for constructing a live-fire training range. No missile bodies were transported during this deployment.
The GSDF hopes to begin firing drills as early as the next fiscal year, starting in April 2027. The move has drawn concerns that it could further heighten regional tensions.
Rare Earth Mining Development Accelerated
At a Comprehensive Ocean Policy Headquarters meeting on Monday, Prime Minister Takaichi instructed relevant ministers to accelerate industrial-scale development verification for rare earth deposits on the seabed near Minamitorishima Island. In February, the deep-sea research vessel Chikyu successfully collected rare earth-containing mud from a depth of approximately 5,600 meters in the area. Takaichi stated that the development system should be established from the perspective of economic security, aiming to reduce dependence on China.
Political Reform Bill Advances Amid Opposition Boycott
The ruling Liberal Democratic Party and Nippon Ishin forced deliberation on a bill to reduce the number of Lower House seats through the Lower House Political Reform Special Committee on Monday. Five opposition parties — including the Centrist Reform Alliance and the Democratic Party for the People — boycotted the proceedings. The opposition has declared it will refuse all deliberations in both chambers. The ruling camp is reportedly aiming for a vote on the bill on June 30.
Economic News: Retail Sales Rise, Nikkei Recovers
Japan’s retail sales rose for a third consecutive month in May, increasing 1.9% year-on-year, powered by strong wage gains and government subsidies to ease living costs.
On the Tokyo Stock Exchange, the Nikkei share average reversed early losses to close 0.15% higher at 69,468.11, as chip-related stocks cut losses after South Korea announced sweeping semiconductor and AI mega-projects.
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