Japan has maintained a defensive military posture for years, but a recent comment by its newly elected leader angered China. Both countries are far from the US, but the rising tension was felt on Wall Street. Nasdaq's travel stocks closed in the red at the start of the week of 17 November 2025.
Japanese Prime Minister Sanae Takaichi said last week that a military attack by Beijing on Taiwan is a 'survival-threatening situation' for Japan. The comment implies she might deploy Self-Defence Forces. China has issued a travel ban on Japan in protest.
