Japan business circles wary as rates rise, hope for weaker yen relief

Japan's business community is reacting with a mix of caution and hope as long-term interest rates have risen to the 3% level. The Japan Chamber of Commerce and Industry chairman noted that higher rates are painful for companies but emphasized the importance of improving productivity. Small and medium-sized enterprises are bearing significant currency risk due to high raw material costs, with hopes that the yen's weakness will be curbed. Mitsubishi Motors' president said auto loans will likely be affected, while planning to absorb higher financing costs elsewhere without changing major investment plans. Infronia Holdings sees the shift to a "world with interest rates" as a chance for differentiation, while Kirin and Unicharm stated they will maintain financial discipline and monitor market conditions for future funding needs.