Kyodo poll shows Japanese public split over Taiwan response

Sunday, November 16, 2025 at 12:33 UTC+01:00 (+0100), Japan, Tokyo

News category : Health and Social Events

Kyodo News released a poll on November 16 indicating that the Japanese public is split on taking military action if China attacks Taiwan, with roughly half in favour and half opposed. The poll amplified political tensions triggered by high-profile remarks from Japanese officials in recent weeks. Financial markets interpreted the outcome as increasing policy uncertainty: a domestic tilt toward higher defence spending supports certain industrial and defence contractors long-term, while near-term diplomatic friction—compounded by travel advisories and consumer reaction—hits tourism and retail sectors. Investors also flagged that shifting public sentiment complicates the political calculus for Tokyo, possibly affecting fiscal and security-related announcements that can have second-order effects on sovereign issuance and sectoral fiscal support plans.

Overall market impact

Light bearish market impact - strength score : 50/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

Japanese defence and industrial stocks

Tourism and retail equities

JPY FX pairs

Regional government bond spreads

Insurance and travel insurers

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