The impact of some big news events, including the earthquake on New Year's Day, are on the minds of the chiefs of Japanese securities firms as we enter 2024. They gave their thoughts on what might be ahead for the economy.

President and CEO of Daiwa Securities Group, Nakata Seiji, says the latest quake reminded the world that Japan is prone to earthquakes. He adds that the collision of a JAL jet with a Japan Coast Guard aircraft on Tuesday also raised concern about safety amid growing demand for tourism, especially inbound travel.

President and Group CEO of Nomura Holdings, Okuda Kentaro says he is worried what impact the earthquake will have on the Japanese supply chain. He also pointed out that many in the market have speculated the Bank of Japan will move to raise interest rates in January, but he doesn't expect this to take place so soon.

A lot of attention is also being paid to spring wage negotiations. Many are watching whether the momentum for pay increases seen in 2023 can be sustained as prices continue to climb.

The Japanese Trade Union Confederation, known as Rengo, has decided to seek greater hikes this year.

President of the union, Yoshino Tomoko, says one key will be to achieve wage increases far above the pace of price hikes. It will be a crucial stage for society to turn to stable economic growth amid a background of steady increases in wages and prices.

Yoshino says another key factor will be whether smaller businesses can raise wages...and if so, by how much. She says wage hikes will be difficult for companies that don't have sufficient funds. So, they may need to pass on price increases, including labor costs. The president hopes smaller businesses will hold frank negotiations with their business partners.

The annual wage negotiations will start in late January and go into full swing through March.