<h1>New Japanese coalition backs market-friendly fiscal and monetary policies as China policy shifts and global trade, bank risks rise</h1> A newly formed governing coalition in Japan is set to back a leader promising market-supportive fiscal and monetary policies, potentially affecting regulatory and financial oversight. China's leadership is conducting closed-door deliberations on five-year policy goals and personnel changes that will be formalized at the national legislature, raising uncertainty for regulatory and trade policy. Ongoing US-China trade tensions and tariff rhetoric remain a transactional risk to cross-border commerce. Financial sector developments include charge-offs and litigation by regional banks, and a Chapter 11 filing by an auto-parts supplier, prompting increased scrutiny of loan quality and potential contagion, with attendant litigation and regulatory risk for lenders.