Japan's weak growth rattles Takaichi's economic promises

Japan's economy expanded just 0.1 percent in Q4 2025, falling short of forecasts and challenging Prime Minister Sanae Takaichi's pledge to boost growth after her February election win. The sluggish performance suggests the recent supplementary budget failed to stimulate spending, increasing pressure on Takaichi to consider a new budget and potentially suspend sales tax on food. Tokyo's Nikkei 225 fell 0.2 percent as markets reacted to the disappointing figures. Hong Kong's Hang Seng rose 0.5 percent during its early Lunar New Year close. Asian markets remained subdued ahead of the extended holiday, with Shanghai, Seoul and Taipei closed. Global investors will watch AI developments at the New Delhi summit while monitoring US inflation data for potential rate cuts.

SOURCE: https://www.channelstv.com/2026/02/16/asian-markets-sluggish-as-lunar-new-year-holiday-looms/