—Nikkei Stock Average · edged down for a 5th straight day on the 14th (Nikkei, Reuters). The closing level could not be confirmed by 2 outlets

DailyDrop.

—Dollar-yen · the yen was slightly weaker in Tokyo trading on the 14th as of 5 p.m. (NHK). The close could not be confirmed by 2 outlets
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Domestic PoliticsPress ✓ 7 outlets · whether the Public Offices Election Act was violated and who the successor will be are unconfirmed

Agriculture Minister Yana Submits Resignation, Prime Minister Accepts It; Less Than 1 Month After Taking Office, First Minister to Quit Over a Scandal in the Takaichi Cabinet

The government plans to decide on a successor on the 15th. Eight opposition groups in the House of Councillors had said they would file a censure motion if he did not resign. The prime minister said, “I take responsibility for the appointment very seriously,” and the opposition is preparing to hold the prime minister to account.

On the 14th, Agriculture, Forestry and Fisheries Minister Kazuo Yana submitted his resignation to Prime Minister Sanae Takaichi, and the prime minister accepted it (NHK, Mainichi Shimbun, Jiji Press, Nikkei). It is the first time a cabinet minister has resigned over a scandal since the Takaichi government took office last October, and it came less than 1 month after the launch of the 2nd reshuffled cabinet (Nikkei, Yomiuri Shimbun). According to the Nikkei, Mr. Yana met the prime minister at the Prime Minister's Office and gave his reason for resigning: “I cannot cause any more trouble for Diet deliberations.” The problems were his “budget cut” remark about road budgets in his home prefecture of Tochigi, and the matter of shuttling supporters free of charge by shuttle bus in a past House of Representatives election. The latter is suspected of violating the Public Offices Election Act (Nikkei, Yomiuri Shimbun). The Asahi Shimbun carried testimony from several former staff members that they had made phone calls asking for votes in exchange for payment in Mr. Yana's elections. On that same 14th, asked about his future at the House of Representatives Budget Committee, Mr. Yana had just said, “I want to carry out my duties with all my might” (Mainichi Shimbun, Jiji Press).

After accepting the resignation, the prime minister said, “I take responsibility for the appointment very seriously,” and indicated he would announce a successor on the 15th (NHK). The Mainichi Shimbun reports that the successor is still being arranged. Before the resignation, eight opposition groups in the House of Councillors had told the Liberal Democratic Party they would file a censure motion if he did not resign (Asahi Shimbun, Mainichi Shimbun, Jiji Press). The city council of Nasukarasuyama, Mr. Yana's home city, has passed a resolution protesting the budget-cut remark (Jiji Press, Mainichi Shimbun, Asahi Shimbun). The opposition parties criticized the prime minister's responsibility in unison after the resignation, and Jiji Press reported that they are also taking aim at Education Minister Seki. The Asahi Shimbun analyzed that the ill effects of “Takaichi's one-party dominance” have appeared and will affect how the Diet is run from here. Whether the conduct amounts to a violation of the Public Offices Election Act has gone unanswered, since the prime minister said “the relevant authorities will decide,” and no conclusion has been reached (NHK, Mainichi Shimbun). The choice of a successor and the Diet debate over responsibility for the appointment will be the focus.

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By the numbers
FirstThe first time a cabinet minister has resigned over a scandal in the Takaichi cabinet (NHK, Nikkei)
8 groupsOpposition groups in the House of Councillors that planned to file a censure motion if he did not resign (Asahi Shimbun, Mainichi Shimbun)
The 15thThe day the prime minister plans to decide on a successor (NHK). The Mainichi Shimbun says “being arranged”
International · DiplomacyPress ✓ 6 outlets · basis for the charge unconfirmed

Russia Detains Hokkaido Shimbun Reporter on Espionage Charges; Pretrial Detention Is 2 Months, Japan Protests to Ambassador

Russia's state-run TASS news agency reported on the 13th that Russia's security service, the Federal Security Service (FSB), had detained a Japanese reporter at the Yuzhno-Sakhalinsk bureau of the Hokkaido Shimbun on suspicion of espionage (NHK, Jiji Press, Mainichi Shimbun, Asahi Shimbun). The FSB claimed he had tried to provide information to Japanese intelligence agencies for the purpose of threatening Russia's security (reported by the Hokkaido Shimbun). It also claims he had been gathering information on mobilized soldiers drafted for the invasion of Ukraine (Jiji Press). The Yomiuri Shimbun and Mainichi Shimbun reported that a court approved a 2-month pretrial detention. The Japanese government protested to the Russian ambassador on the 14th and called for the provision of information and an early release, but neither a meeting nor information has materialized (Mainichi Shimbun, Jiji Press, Asahi Shimbun). According to NHK, as of the morning of the 15th the government is still hurrying to confirm the circumstances that led to the detention. The specific basis for the charge has not yet been confirmed.

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Word of the day
Pretrial detentionKORYU

Holding a suspect or defendant in a detention facility so that they do not flee or destroy evidence. In this case, a Russian court was reported to have approved a period of 2 months.


International · Middle EastPress ✓ 8 outlets · extent of damage and oil prices partly unconfirmed

Houthis Attack Saudi Aramco Headquarters, Saudi Side Also Bombs Near Capital Sanaa; Foreign Ministry Raises Travel Advisory for All of Saudi Arabia

The exchange of attacks between Saudi Arabia and the Houthis, an armed group in neighboring Yemen, has reached the core of an oil-producing country. In the early hours of the 14th Japan time, explosions were heard near the headquarters of the state oil company Saudi Aramco in Dhahran in the east (Reuters, Mainichi Shimbun), and Saudi Arabia's Energy Ministry said an administration building had been hit and a fire had broken out (NHK). Reuters, citing sources, reported that the headquarters suffered extensive damage, but The Japan Times reported that the fire was limited, so accounts of the extent of the damage differ. The Houthis claimed it was retaliation for the attack on the capital Sanaa (Jiji Press) and warned of further attacks on Saudi airports and oil facilities (Reuters). The Saudi-led coalition had bombed oil-related facilities near Sanaa (BBC, The Guardian, Asahi Shimbun). According to NHK, on the 13th both sides had notified civilians and others at the other side's oil facilities to evacuate.

Oil rose. New York crude (WTI) for November delivery closed at $95.09 a barrel on the 14th, up 1.01%, FinancialJuice reported. Brent crude futures were $106.06 (same source). U.S. President Trump said the Houthis are trying to push up oil prices ahead of the U.S. midterm elections (Reuters, Asahi Shimbun). Near the Strait of Hormuz, a container ship was hit by a projectile and sank, Reuters reported, citing sources. On the 14th the Foreign Ministry raised its travel advisory for all of Saudi Arabia and asked people to cancel nonessential, non-urgent travel (Mainichi Shimbun, Jiji Press). The official identification of who carried out the attacks, and the amount of damage, have not yet been confirmed.

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International · EconomyPress ✓ 7 outlets · the 14th close of U.S. stocks unconfirmed

U.S. September CPI Up 3.7% From a Year Earlier, Above Forecasts; Rate-Hike Bets Strengthen and U.S. Stocks Fall, Nikkei Stock Average Falls for 5th Straight Day on Chip Stock Declines

The U.S. consumer price index (CPI) for September, released on the 14th, rose 3.7% from a year earlier. The market forecast was 3.6% and the previous month was 3.4%, so the pace accelerated (NHK, Jiji Press, Fisco, Reuters). The month-on-month change was 0.6%. The core index, which excludes food and energy, was up 2.6% from a year earlier, above the forecast of 2.5% (FinancialJuice). Bloomberg reported it was the biggest rise in 5 months, reflecting higher fuel prices. After the release, both stocks and bonds were sold (Bloomberg), and Jiji Press reported market participants' view that expectations of an additional rate hike in October had strengthened. New York Fed President Williams had said on the 13th that one more rate hike this year would be appropriate (Bloomberg, FinancialJuice).

The yen was slightly weaker, by ¥0.13 from the 13th, at 5 p.m. in Tokyo (NHK). Fisco reported that dollar-yen rose to ¥158.80 right after the CPI release. U.S. stocks fell; according to Jiji Press, the Dow was down $278 as of 2 p.m. local time, and the Nasdaq was also lower. The closing levels have not been confirmed. The Financial Times reported that U.S. chip stocks fell on worries about inflation and AI-related debt. In Tokyo, the Nikkei Stock Average edged down for a 5th straight day (Nikkei, Reuters). The same day, ASML reported earnings, and its revenue outlook for the October–December quarter beat market forecasts (Reuters, FinancialJuice). The Nikkei reported that selling swelled after that.

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Domestic · SocietyPress ✓ 6 outlets · total number leaked and the full picture of causes unconfirmed

Personal Data Leaks Keep Coming: Bookoff 6.38 Million People, Up to 3.13 Million Items From Disaster-Alert Emails, Hiroshima Prefectural Police Staff Data Too

Leaks of personal information through unauthorized access have spread from companies to local governments and the police. Bookoff announced that it had confirmed more than 6.42 million member records were sent outside, and that after removing duplicates by email address the total is 6,383,279 people, of whom 212,371 had left the membership (ITmedia, Den Fami Nico Gamer, Yahoo! News). “Aena” disclosed the risk of a leak affecting up to 817,000 people (Asahi Shimbun, ITmedia), and Izumi, which operates “Yume Town,” said member information on up to about 400,000 records may have leaked (NHK). ITmedia reported that unauthorized access to a disaster-information delivery system used by about 700 municipalities nationwide may have leaked up to 3.13 million email addresses. The Mainichi Shimbun reported that unauthorized access to the operator “Arcadia” may have leaked about 24,000 email addresses in Tsu City, and that risks of leaks have also been announced in Mie Prefecture's Matsusaka and Suzuka and in several municipalities in Nagasaki Prefecture. At the Hiroshima Prefectural Police, it came to light that personal information of police officers and staff may have leaked (NHK).

The cause cannot be narrowed down to one. IDC Frontier explained in its 5th report dated the 14th that its cloud service had been hit by unauthorized access by a third party from around 3:40 a.m. on the 7th and that the outage is continuing. The company said there was “no data leak” (47NEWS), but client companies including JR Central have announced they cannot rule out the possibility that data was viewed (ITmedia). The Asahi Shimbun reported that one cause of the string of leaks has been identified as a technique of analyzing apps and attacking servers. At the cloud of a SoftBank subsidiary, it turned out that some customer data that had been thought difficult to restore can be retrieved (NHK). The Asahi Shimbun reported that a SoftBank-affiliated service said there was “no data leak,” but it cannot be confirmed from the article whether the two are the same case. The National Police Agency, together with Microsoft of the U.S., took down a site selling phishing-scam tools (Jiji Press, Asahi Shimbun). In an NHK poll, 77% said they “feel” anxious about their own personal information leaking.

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In brief
  • U.S. stocks fell back on the 13th for the first time in 4 days, with the Dow down $180. On the 14th it was down $278 as of 2 p.m. local time, and the close could not be confirmed by 2 outlets before this paper went to press47NEWS · Nikkei · Jiji Press
  • The Nikkei Stock Average edged down for a 5th straight day on the 14th. The Nikkei reported the close as ¥33 lower (1 outlet only)Nikkei · Reuters
  • WTI crude for November delivery closed at $95.09 (+1.01%) and Brent crude at $106.06 on the 14th (both from 1 outlet's feed)FinancialJuice
  • China's aircraft carrier “Liaoning” is training in the western Pacific. Carrier-based aircraft also took off and landedNHK · The Japan Times
  • Kumamoto Prefecture appeals a ruling that ordered certification of Minamata disease. The plaintiffs say “there is no reason to contest it”Asahi Shimbun · Mainichi Shimbun
  • Oral arguments held at the Supreme Court's Grand Bench over limits on prisoners' voting rights. A ruling is expected as early as this yearNHK · Asahi Shimbun
  • In the case of sexual assault on a subordinate by a former chief prosecutor, the trial resumes at the Osaka District Court on the 27th. The defendant is expected to plead not guiltyAsahi Shimbun · Mainichi Shimbun · Jiji Press
  • Vissel Kobe wins its 2nd straight in the ACL Elite, beating Jeonbuk 2–0The Japan Times · The Straits Times
Seven minutes every morning, one front page

Unverified — what we could not confirm

“FBI Director Patel is in Russia.” The FBI explained that the director is in the state of Virginia and not in Russia (Reuters). The post it originated from could not be found, and only 1 outlet, Reuters, reported it.
“Israel will resume attacks on Iran before the election.” Prime Minister Netanyahu said on the 14th that he does not favor a preemptive strike before the general election on the 27th (Reuters). The Mainichi Shimbun reported that Trump and Netanyahu discussed the possibility of resuming, so whether talks took place and whether there is an intent to attack need to be viewed separately.
“The Hokkaido Shimbun reporter was working for Japanese intelligence.” This is the Russian FSB's claim, reported by TASS and others. The Japanese government is checking the facts, and no evidence to back it up has been presented.
Glossary · dotted words — politics, markets, law and international affairs terms explained in the context of the story. The list builds up every day.
INSIDEAgriculture Minister Yana Submits Resignation, Prime Minister Accepts It; Less Than 1 Month After Taking Office, First Minister to Quit Over a Scandal in the Takaichi CabinetDomestic PoliticsRussia Detains Hokkaido Shimbun Reporter on Espionage Charges; Pretrial Detention Is 2 Months, Japan Protests to AmbassadorInternational · DiplomacyHouthis Attack Saudi Aramco Headquarters, Saudi Side Also Bombs Near Capital Sanaa; Foreign Ministry Raises Travel Advisory for All of Saudi ArabiaInternational · Middle EastU.S. September CPI Up 3.7% From a Year Earlier, Above Forecasts; Rate-Hike Bets Strengthen and U.S. Stocks Fall, Nikkei Stock Average Falls for 5th Straight Day on Chip Stock DeclinesInternational · EconomyPersonal Data Leaks Keep Coming: Bookoff 6.38 Million People, Up to 3.13 Million Items From Disaster-Alert Emails, Hiroshima Prefectural Police Staff Data TooDomestic · Society