• Will likely take some time to gauge broader impact on Japan's economy via various channels
  • Hit to European economy may indirectly weigh on Japan's economy

Well, the likely hit will come via surging commodity prices. A jump in energy prices especially may help to spur some inflation but it will also come at a cost for Japanese businesses and consumers, since they are a big importer of oil. The positive thing is that most of the oil that Japan imports are from the Middle East but it won't help that prices are soaring like it is now.