Japan defence minister denies militarism, criticises China's 'huge arsenal'

Japan's defence minister Shinjiro Koizumi defended Tokyo's expanding military posture at the Shangri‑la Dialogue, pushing back against Beijing's accusations of 'new militarism' and highlighting China’s rapid military build‑up. The article notes Japan has increased its defence budget for 12 straight years, with the latest cabinet-approved budget topping 9 trillion yen (~$57bn) as Tokyo moves toward a 2% of GDP target. Policy moves — including plans to buy new surface‑to‑ship missiles, land and underwater drones, relaxed rules allowing export of lethal weapons, and a revision of security documents by year‑end — could boost Japanese defence suppliers and related sectors, supporting segments of the Japan 225 index. However, domestic political division and large anti‑war protests add geopolitical and political risk that may increase market volatility around defense and broader Japanese equities.