
South Korea’s chip-led expansion and upgraded GDP forecasts provide a template for Japan, according to ING's Chris Turner. With Japan supplying key manufacturing equipment and benefiting from loose fiscal policy, Turner sees scope for an upside growth surprise that could put pressure on USD/JPY.
"We’re also watching Japan for signs that it could follow South Korea’s lead and deliver stronger growth."
"There, chip exports have benefited the broader economy and the Bank of Korea revised up this year’s GDP forecast to 3.3%, from 1.8% at the start of 2026."

"Japan supplies the manufacturing equipment and materials for chip production."
"Broader benefits to the economy from loose fiscal policy could see upside surprises to Japanese growth, tighter Bank of Japan policy and a much weaker USD/JPY."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Find out more.)