Japan's government on Thursday maintained a cautious outlook for the economy in part as policymakers kept a wary eye on U.S. President Donald Trump's policies and their potential impact on global growth.

By Sam Nussey and Anton Bridge TOKYO (Reuters) -SoftBank CEO Masayoshi Son's plan to invest billions in AI in the United States shows one way to handle the new Trump administration: go big and deal with the details later.

Japan will continue to strengthen its defence capabilities given the security situation in East Asia, Japan's foreign minister told his U.S. counterpart in a meeting on Tuesday, his spokesperson said.

Japan might take a leadership role in global free trade if the United States piles on tariffs and rejects multilateral institutions, some analysts and business leaders argue. It could find opportunity in the turmoil while avoiding direct confrontation with its ally.

TOKYO (AP) — Japan saw record-high exports last year, as its annual trade deficit declined 44% from the previous year, the Finance Ministry reported Thursday.

As Trump's second administration comes to a start, experts speculate on what it could mean for U.S. relations with Japan and China.

Japanese Prime Minister Shigeru Ishiba on Tuesday congratulated Donald Trump on his return to the White House and said he wanted to build a "relationship of trust".

Beneath the polite diplomacy lies a current of apprehension about what Donald Trump’s return means for Japan’s place in an upended world.

Investment trusts that cater to Japanese individuals bought a net ¥10.4 trillion of overseas equities and funds last year.

More than a dozen countries across the world refuse to grant travel visas to people with a felony on their records, a category that now includes President-elect Trump.

The dollar steadied against major peers on Thursday, continuing its near paralysis of the past two days before more concrete announcements on tariffs from U.S. President Donald Trump.

He has worked at the U.S. Department of State, on the National Security Council, and as a foreign policy adviser to U.S. Senator John McCain. Today, U.S. President Donald Trump will sweep back into power promising a new American approach to the world.