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Keen Sword Drills Begin With 57,000 Japan-US Troops
Why are Japan and the US holding the Keen Sword drills?
Japan and the US began the Keen Sword drills on Monday with about 45,000 Japanese and 12,000 US troops, as Japan deploys Type 25 long-range missiles outside their base for the first time.
Key numbers
| Japanese troops | 45,000near-maximum scale |
|---|---|
| US troops | 12,000alongside Japan's forces |
| Type 25 missile range | 1,000 kmfirst use off-base |
| Yonaguni to Taiwan | 110 kmUS anti-ship system sent |
| Kawasaki Heavy (7012.T), Oct 16 | ¥2,282.50+6.41% |
| Nikkei 225, early Monday | 63,984-2.05% |
What happened
Japan and the US began the Keen Sword drills on Monday with about 45,000 Japanese and 12,000 US troops, as Japan deploys Type 25 long-range missiles outside their base for the first time. The missile has a range of about 1,000 kilometers. U.S. Marines are also bringing an anti-ship missile system to Yonaguni, Japan's westernmost island, about 110 kilometers from Taiwan. The drills run through October 29. Japan's ties with China have worsened since Prime Minister Sanae Takaichi said last year that an attack on Taiwan could justify Japanese involvement.
Why it matters
The Keen Sword drills show Japan moving from planning to practicing with missiles that can hit targets far away, on islands close to Taiwan. That raises tension with China, which calls the deployment a provocation. For investors, Japanese defense makers such as Mitsubishi Heavy, Kawasaki Heavy and IHI each rose about 5% to 6% on Friday. Drills alone do not set prices, though. Japan's main stock index fell more than 2% early Monday mostly on US tech and oil worries.
Who this affects
- MarketmixedLow impact
- Defense stocks rose Friday; the wider Nikkei fell on other worries.
- CompanyneutralLow impact
- Japanese defense makers get attention; any earnings effect is unproven.
- CompetitorsneutralMedium impact
- China faces closer Japan-US coordination near Taiwan, and objects.
- IndustrybullishMedium impact
- Japan's missile makers get a high-profile showcase for their weapons.
Kawasaki Heavy vs Mitsubishi Heavy, IHI
| Kawasaki Heavy7012.T | 2,282.50 | +6.41% |
|---|---|---|
| Mitsubishi Heavy7011.T | — | +5.42% |
| IHI7013.T | — | +5.01% |
As of 2026-10-16
How we got here
Mitsubishi Heavy, Kawasaki Heavy and IHI shares rise about 5% to 6% in Tokyo.
Chinese state media call Japan's Type 25 deployment a "clear provocation".
Keen Sword begins with 45,000 Japanese and 12,000 US troops; Type 25 missiles leave base.
Nikkei falls more than 2% early on US tech selloff and higher oil prices.
What to watch
- Drills end October 29; watch for any Chinese military or diplomatic response.2026-10-29
- Okinawa protests over US bases, renewed after a US Marine's arrest, during the exercise.2026-10-29
- Kawasaki Heavy's next earnings report, a read on defense demand.2026-11-10
Educational content only. Not investment advice.
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