According to @godbole17, Japan’s rising defense spending amid potential involvement in the Taiwan issue increases the risk that Japanese investors repatriate capital from U.S. Treasuries and tech stocks, which could pressure global risk assets; source: X post by @godbole17, Dec 29, 2025. Japan is a major net international creditor, making any repatriation flow sizeable for global markets; source: Japan Ministry of Finance, International Investment Position report. A repatriation shock would arrive while China has been contending with factory-gate deflation and weak consumer sentiment, amplifying downside risks to global demand; source: National Bureau of Statistics of China, Producer Price Index releases 2023–2024. For trading, watch USDJPY closely: sustained yen strength typically aligns with carry-trade unwinds and higher cross-asset volatility that can weigh on U.S. Treasuries and mega-cap tech and spill over to crypto liquidity, impacting BTC and ETH; source: BIS Quarterly Review on currency carry trades and risk reversals; IMF research on rising crypto–equity correlations.