Reports: Japan is considering imposing new taxes on companies.

Some reports cited through Japanese media on Wednesday morning indicated that the Japanese government is considering imposing an additional 4% tax on companies to direct more resources towards defense spending.

In addition to this, local media confirmed that Japanese companies are looking into:

• The trends of the weak yen which raises the costs of imported raw materials and energy.
• The overall increase in the Producer Price Index in Japan.
• Wage requirements.
• Weak consumer demand within Japan.
• Potential increases in interest rates by the Bank of Japan.

Data released by the Ministry of Health, Labor and Welfare at the end of the week showed that basic wages in Japan grew at the highest rate in 32 years during the month of October, which bolstered real wage growth after two months of declines.

The ministry's data indicated that basic wages increased by 2.7% during October, marking the highest rate of increase since November 1992, as more companies set higher wage growth rates after major companies agreed to an average increase of 5.1% during annual wage negotiations.