My answer to the WWTD 2023 : Japan Market Outlook quiz is B - Financial.

Japan has been embracing rising prices and pursuing the yield curve control to keep interest rates low. As a result, the Yen has depreciated sharply. Financial sector will be the least likely benefit from this expectation.

The depreciation of the yen leads to an increased financial burden on households and businesses.” The shift also sinks Japanese wages relative to the dollar, meaning that more Japanese go abroad to work and fewer foreign workers come to Japan.

The depreciation of the yen will be reflected in higher import prices in yen-terms and lower sales of imported goods. It will be a burden on the importing industries which already faces difficulty in passing the increase in input prices on to retail prices because of the weak domestic demand and a negative output gap.

The weak yen has provided a boost to the country’s sprawling export sector by making Japanese goods cheaper for foreign buyers.

The depreciation of Japanese yen has encouraged more travelers to visit the country, therefore it benefits tourism.