Japans

Currently nominated for multiple Oscars, Chloé Zhao’s “Hamnet” traces how the immeasurable sorrow of losing a child fueled William Shakespeare to write “Hamlet” as a literary effigy to loss. That revered text, which has inspired countless adaptations (“The Lion King” among them), takes on a new form in the hands of Japanese animation master Mamoru Hosoda for his latest fantastical epic, “Scarlet.”

In a career of animated features with thematic heft and deep emotional impact, “Scarlet” may be the director’s most sobering and intense effort to date, not only given the severity of the violence on display, but because it advocates for the sometimes-impossible task of forgiving one’s foes, even when they show no remorse. Here, what’s at stake is one’s very soul. What remains is Hosoda’s investment in parent-child relationships, a recurring subject for him, always explored with compassion for both parties: the child in need of guidance and the parent struggling to be a beacon.

Gender-swapping the play, Hosoda once again centers a heroine (he seems to prefer female protagonists). The 16th century eponymous Danish princess (voiced by Mana Ashida) loses her father, King Amleth (Masachika Ichimura), to a gruesome betrayal. Her unscrupulous, power-hungry uncle Claudius (Kôji Yakusho) murders his own brother to become king. But in his final moments, as Scarlet watches, Amleth pleads a request she cannot hear. Avenging her fallen father — and finding out what he asked for before dying — becomes the young woman’s sole purpose going forward. Rage consumes her.

Hosoda’s body of work consists almost exclusively of movies that take place on two distinct planes, whether those be reality and a digital world (“Summer Wars,” “Belle”) or reality and a magical realm (“Mirai,” “The Boy and the Beast”). “Scarlet” is no different in that regard.

This time, however, he explores an afterlife with its own set of rules. Sensing Scarlet’s resolve to destroy him, Claudius poisons her. Scarlet wakes up in the Otherworld, an endless, arid landscape with an ocean for sky where a dragon roams. The deceased from the past and the present convene here. That’s how Scarlet and Hijiri (Masaki Okada), a paramedic from our present who refuses to believe he’s died, can exist in the same timeline. This purgatory essentially mirrors life: There’s conflict and suffering and if you die again here, you vanish into darkness forever. The goal is to ascend to the Infinite Land, a stand-in for heaven. But Scarlet cares not for eternal peace. She learns that Claudius is here and embarks on a trek to find him and kill him for good.

Hosoda doesn’t dwell on the differences between Scarlet and Hijiri’s realities back in the land of living. Instead, he zeroes in on their clashing worldviews. While Scarlet doesn’t think twice about slaughtering anyone who gets in her way, Hijiri protects life at all costs, so much that one can understand Scarlet’s frustration with him. After a brutal fight, for example, Hijiri bandages her enemies’ wounds with as much care as he does hers.

Multiple battles with Claudius’ henchmen pepper Scarlet and Hijiri’s journey, as does an encounter with the United Nations of this place: a group of wandering nomads from around the world who’ve come together for companionship. Even after death, Hosoda suggests, all people truly hope for is a shoulder to cry on and someone to share their burdens with.

For “Scarlet,” Hosoda ventures into uncharted aesthetic territory. When the narrative is in the Otherworld, fans will immediately notice the look differs from his previous creations. And that’s because Hosoda has opted for photorealistic, computer-generated animation in those sections. The early scenes in Scarlet’s time period are conceived using the more traditional hand-drawn technique.

Still, the characters in the Otherworld, created in CGI, retain qualities of hand-drawn animation, making one hyperaware of the relationship between the figure’s movement and the environment. The mix of visual approaches shocks the eye at first, though it comes to seem fitting.

If probed too closely, Hosoda’s high-concept interpretation of life after death may raise more questions than it can answer (have all of history’s villains been killed in the Otherworld?). But despite any narrative quibbles, the movie deserves praise for its genuine call for compassion. Scarlet’s final encounter with Claudius radiates with the complicated poignancy expected of real, difficult catharsis.

Admittedly, the film’s resolution feels naïve. Scarlet’s good intentions to end wars by way of sheer determination to do what’s right might prove insubstantial in practice. In that regard, “Scarlet” is the prayer of a director who fervently wants to believe in kindness (even for those who don’t deserve it) as the one true road to healing. That’s a tall order these days, especially in this country, but it’s hard to fault Hosoda for the sincere reminder of what could be.

Japanese Prime Minister Sanae Takaichi’s tax and spending pledges in advance of snap elections next month have sent jitters through global markets.

Japanese government bonds and the yen have been on a rollercoaster since Takaichi unveiled plans to pause the country’s consumption tax if her Liberal Democratic Party wins the February 8 vote.

The market turmoil reflects concerns about the long-term sustainability of Japan’s debt levels, which are the highest among advanced economies.

The volatility has extended beyond Japan, highlighting broader fiscal sustainability worries in an era in which the United States and other major economies are running huge deficits.

What has Takaichi promised on the economy?

Takaichi said last week that she would suspend the country’s 8 percent consumption tax on food and non-alcoholic beverages for two years if her government is returned to power, following her dissolution of the House of Representatives.

Based on Japanese government data, Takaichi’s plan would result in an estimated revenue shortfall of 5 trillion yen ($31.71bn) each year.

Takaichi, a proponent of predecessor Shinzo Abe’s agenda of high public spending and ultra-loose monetary policy, said the shortfall could be made up by reviewing existing expenditures and tax breaks, but did not provide specific details.

Takaichi’s tax pledge comes after her Cabinet in November approved Japan’s largest stimulus since the COVID-19 pandemic.

The package, worth 21.3 trillion yen ($137bn), included one-time cash handouts of 20,000 yen per child for families, subsidies for utility bills amounting to about 7,000 yen per household over a three-month period, and food coupons worth 3,000 yen per person.

Why have Takaichi’s pledges unnerved markets?

Japan’s long-term government bond yields soared following Takaichi’s announcement.

Yields on 40-year bonds rose above 4 percent on Tuesday, the highest on record, as investors exited from Japanese government debt en masse.

Bond markets, through which governments borrow money from investors in exchange for paying out a fixed rate of interest, are closely watched as a gauge of the health of countries’ balance sheets.

While typically offering lower returns than stocks, government bonds are seen as low-risk investments as they have the backing of the state, making them attractive to investors seeking safe places to park their money.

As confidence in a government’s ability to repay its debts declines, bond yields rise as investors seek higher interest payments for holding riskier debt.

“When Prime Minister Takaichi announced a planned reduction in consumption taxes, this made existing bond-holders of Japan’s debt uneasy, requiring a higher compensation for the risk they bear,” Anastassia Fedyk, an assistant professor of finance at the Haas School of Business of the University of California, Berkeley, told Al Jazeera.

“As a result, bond prices dropped and yields rose. And yes, this is a general pattern that applies to other countries, too, though Japan has an especially high level of debt, making its position more vulnerable.”

Japan’s debt-to-GDP ratio already exceeds 230 percent, following decades of deficit spending by governments aiming to reverse the country’s long-term economic stagnation.

The East Asian country’s debt burden stands far above that of peers such as the US, UK and France, whose debt-to-GDP ratios are about 125 percent, 115 percent and 101 percent, respectively.

At the same time, the Bank of Japan (BOJ) has been scaling back bond purchases as part of its move away from decades of ultra-low interest rates, limiting its options for interventions to bring yields down.

“Bond investors reacted because her headline package looks like large, near-term fiscal loosening at exactly the moment the BOJ is trying to normalise policy,” Sayuri Shirai, a professor of economics at Keio University in Tokyo, told Al Jazeera.

How does all this affect the rest of the world?

The sell-off in Japanese bonds reverberated through markets overseas, with yields on 30-year US Treasuries rising to their highest level since September.

As Japanese bond yields rise, local investors are able to earn higher interest payments at home.

That can incentivise investors to offload other bonds, such as US Treasuries.

As of November, Japanese investors held $1.2 trillion in US Treasuries, more than any other foreign group of buyers.

In an interview with Fox News last week, US Treasury Secretary Scott Bessent expressed concern about the impact of Japan’s bond market on US Treasury prices and said he anticipated that his Japanese counterparts would “begin saying the things that will calm the market down.”

Japan’s long-term bond yields fell on Monday amid the expectations that Japanese and US authorities would step in to prop up the yen.

On Friday, The New York Times and The Wall Street Journal reported that the Federal Reserve Bank of New York had inquired about the cost of exchanging the Japanese currency for US dollars.

“Japan matters globally through flows. If Japanese government bond yields rise, Japanese investors can earn more at home, potentially reducing demand for foreign bonds; that can nudge global yields and risk pricing,” Shirai said.

“This is why global-market pieces have framed Japan’s bond move as a wider rates story.”

Higher bond yields in Japan, the US and elsewhere raise the cost of borrowing and servicing the national debt.

In a worst-case scenario, a sharp escalation in interest rates can lead to a country defaulting on its debts.

Masahiko Loo, a fixed income strategist at State Street Investment Management in Tokyo, said that the reaction of international investors to Takaichi’s plans reflects growing sensitivity to fiscal credibility in highly indebted economies.

“Yes, Japan may be the spark, but the warning applies equally to the US and others with large structural deficits,” Loo told Al Jazeera.

Is Japan on the verge of a financial crisis?

Probably not.

While Japan is more indebted than its peers, its fiscal position is more sustainable than it might appear due to factors specific to the country – at least in the short to medium term – according to economists.

The vast majority of Japan’s debt is held by local institutions and denominated in yen, reducing the likelihood of a panic induced by foreign investors, while interest rates are far lower than in other economies.

“The debt situation is more manageable than a lot of people think,” Thomas Mathews, head of markets for Asia Pacific at Capital Economics, told Al Jazeera.

“Net debt-to-GDP is on a downward trajectory, and Japan’s budget deficit isn’t all that big by global standards.”

Loo of State Street Investment Management said that the turmoil surrounding Japan had more to do with a “communication gap around fiscal sustainability and policy coordination” than the country’s solvency.

“That said, markets are likely to continue testing the feasibility of the agenda, as even fiscally sanguine countries have, at times, been disciplined by market forces,” Loo said.

Japan’s roster for the World Baseball Classic features familiar names, but one question lingers.

The Dodgers’ Shohei Ohtani and Yoshinobu Yamamoto were among those named to Team Japan by manager Hirokazu Ibata on Monday at a news conference in Tokyo. Ohtani previously announced his intention to participate in the WBC in November, and Yamamoto was expected to take part despite a heavy workload in the Dodgers’ run to a second straight World Series championship.

Dodgers right-hander Roki Sasaki, who will be returning to the starting rotation after missing most of last year’s regular season because of a shoulder injury, was not selected. Sasaki was on Team Japan in 2023, starting two games — including a dramatic semifinal win over Mexico.

In his earlier announcement, Ohtani did not indicate whether he would pitch in the WBC and on Monday Ibata told reporters that the team will get a better sense once Ohtani reports to spring training next month.

In the 2023 WBC, Ohtani won tournament MVP with a .435 batting average and 1.86 pitching ERA, helping Japan to the title. He punctuated the event with his memorable strikeout of Mike Trout for the final out in the championship game.

Eight major leaguers were named to Team Japan’s WBC roster, including the Angels left-hander Yusei Kukuchi, Padres left-hander Yuki Matsui, Blue Jays infielder Kazuma Okamoto, White Sox infielder Munetaka Murakami, Cubs outfielder Seiya Suzuki and right-hander Tomoyuki Sugano, currently a free agent who pitched for the Baltimore Orioles last year.

MLB players are expected to join Team Japan for exhibition games on March 2. Japan will open WBC play on March 6 against Taiwan.