Japan Economy Watch: Japan’s real GDP grew at a 1.1% annualized pace in April–June, but the quarter-on-quarter rise was just 0.3%, with private consumption flat and capital spending still weak—raising fresh questions for the BOJ’s next rate move amid Middle East-driven energy and supply-chain headwinds. War Memory & Diplomacy: Japanese media sharply criticized PM Sanae Takaichi for avoiding wartime responsibility language on the 81st anniversary of WWII’s end, while Defense Minister Shinjiro Koizumi and other officials visited Yasukuni Shrine—fueling renewed regional anger and warnings about a “return to the prewar era.” Security & Alliances: US President Donald Trump ordered the Pentagon to “substantially reduce” joint exercises with South Korea (Ulchi Freedom Shield), citing cost and Seoul’s refusal to join US denuclearization efforts tied to Iran—while South Korea said drills would proceed as scheduled, leaving uncertainty over what changes. Regional Outreach: Japan signed a grant deal with Kyrgyzstan for about 533 million yen (roughly $4 million) to buy road machinery, alongside talks on healthcare, energy, SMEs, and digitalization. Disaster & Local Impact: Kyodo reported Chiba’s rain disaster toll rising to 10 dead, with flooding damage expanding and one person still missing.