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flag Japanese corporate bankruptcies hit a 13-year January high due to rising wages, labor shortages, and weak sales.

flag Corporate bankruptcies in Japan rose 5.6% in January to 887, the highest January level in 13 years, driven by rising labor costs, labor shortages, and weak sales, according to Tokyo Shoko Research. flag A sharp increase in failures linked to high wages and staffing issues marked the second consecutive monthly rise, with 19 firms citing wage pressures—triple last year’s figure. flag Despite a slight improvement in real wages, falling only 0.1% in December, inflation and a weak yen continue to strain businesses. flag Prime Minister Sanae Takaichi has pledged support for small firms, while analysts warn further yen depreciation could reignite inflation, potentially reversing recent wage gains by April. flag The Bank of Japan holds rates at a 30-year high of 0.75% and may delay further hikes unless inflation shows sustained progress toward its 2% target.

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