S&P 5007,785.76▼0.2% Nasdaq26,729.16▼0.3% Dow53,732.41▼0.2% Russell 2K3,068.42▲0.5% 10-Yr4.70%+6bp VIX14.25−0.38 WTI$82.40▲1.4% Gold$4,432.00▲1.6% EUR/USD1.157▲0.4% BTC$77,299▲5.8% Nikkei68,309▲1.2%
At close · Fri, Aug 14, 2026
Daily Market Updates.

Global Markets

HomeGlobal MarketsAsiaJapan plans record defense budget as US security confi…

Japan plans record defense budget as US security confidence fades

Japan’s defense ministry is preparing to seek 8.9 trillion yen for fiscal 2027, citing needs for drones, AI-enabled command systems, and long-range missiles.

Japan is preparing a request for a record defense budget of 8.9 trillion yen, or US$56.1 billion, for the 2027 financial year, with major outlays planned for drones, AI-enabled command systems, long-range missiles and support for Japan’s domestic defence industry, according to SCMP Economy.

The request is tied to ongoing reviews of three key national security documents, with updated position papers due before the end of the year, which is expected to keep pressure on spending levels.

SCMP Economy said analysts view the rising defense push as a response to multiple converging factors, including a deteriorating security environment in the Indo-Pacific, lessons drawn from the war in Ukraine, and fading confidence in the United States as a reliable security partner.

The outlet also cited William Yang, a Taiwan-based analyst at the International Crisis Group, who said the US has been urging allies in both Europe and Asia-Pacific to significantly increase defense spending.

More like this

Sources

Get the close, explained.

One email every trading day: what moved, why it moved, and what's on deck tomorrow. Read in 3 minutes.

Free. Unsubscribe anytime.