Shinto and Buddhism have been intertwined in Japanese society for centuries, and a majority of the population identify themselves as members of one or both of these religions. Indeed, most Japanese blend the two, preferring attendance at Shinto shrines for some events?such as New Year?s Day, wedding ceremonies, and the official start of adulthood at age 20?and Buddhist ceremonies for other events, most notably Bon (a midsummer celebration honoring ancestral spirits) and funerals. Confucianism and Daoism, which came to Japan from China by way of Korea, have also profoundly influenced Japanese religious life.
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There are countless local festivals (Matsuri) in Japan because almost every shrine celebrates its own one. Most festivals are held annually and celebrate the shrine's deity or a seasonal or historical event. Some festival are held over several days. An important element of Japanese festivals are processions, in which the local shrine's Kami (Shinto deity) is carried through the town in mawkish (palanquins). It is the only time of the year when the Kami leaves the shrine to be carried around town.
Here's a list of some the major festivals in Japan