Market Update
Technology Stock Rally Lifted Japan's Indexes Near Record Highs
Akira Ito
10 Sep, 2025
Tokyo
Technology stocks in Tokyo led gainers on Wednesday, driving broader benchmark indexes higher.
The Nikkei 225 Stocks Average gained 0.8%, and the broader Topix increased 0.6% as domestic manufacturers' sentiment hit a three-year high.
The Reuters Tankan Index for Japanese manufacturers rose to +13 in September, as trade uncertainties eased following a trade deal with the U.S.
The index reached its highest level since August 2022, as sentiment improved in six of the nine manufacturing industries, led by automobile and transportation machinery.
However, the index is expected to ease to +11 by December amid persistent worries about a fragile domestic economy.
Investor sentiment in Tokyo improved following the downward revision of U.S. payroll gains over the 12-month period to March 2025, indicating that the labor market is weaker than previously estimated.
The Bureau of Labor Statistics said that the U.S. economy added 911,000 fewer jobs over a year ending in March 2025, which accounts for a much wider set of data covering nearly 95% of the labor force.
The agency previously estimated that the U.S. economy added about 1.79 million jobs in a year ending in March 2025.
The sharp annual downward revision to the payroll gains follows an 818,000 downward revision for the year ending in March 2024, supporting the case for the Federal Reserve to consider a larger rate cut of 50 basis points during the policy meeting next week.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.8% to 43,809.31, and the broader Topix added 0.6% to 3,140.79.
Tokyo Electron increased 0.6% to ¥21,150.0, Advantest Corp. gained 3.2% to ¥13,125.0, and Disco Corp. jumped 3.3% to ¥39,000.0.
Toyota Motor Corp. decreased 1.2% to ¥2,913.50, Honda Motor declined 1.8% to ¥1,666.0, and Nissan Motor fell 0.6% to ¥354.90.
Technology Stock Rally Lifted Japan's Indexes Near Record Highs
Akira Ito
10 Sep, 2025
Tokyo
Technology stocks in Tokyo led gainers on Wednesday, driving broader benchmark indexes higher.
The Nikkei 225 Stocks Average gained 0.8%, and the broader Topix increased 0.6% as domestic manufacturers' sentiment hit a three-year high.
The Reuters Tankan Index for Japanese manufacturers rose to +13 in September, as trade uncertainties eased following a trade deal with the U.S.
The index reached its highest level since August 2022, as sentiment improved in six of the nine manufacturing industries, led by automobile and transportation machinery.
However, the index is expected to ease to +11 by December amid persistent worries about a fragile domestic economy.
Investor sentiment in Tokyo improved following the downward revision of U.S. payroll gains over the 12-month period to March 2025, indicating that the labor market is weaker than previously estimated.
The Bureau of Labor Statistics said that the U.S. economy added 911,000 fewer jobs over a year ending in March 2025, which accounts for a much wider set of data covering nearly 95% of the labor force.
The agency previously estimated that the U.S. economy added about 1.79 million jobs in a year ending in March 2025.
The sharp annual downward revision to the payroll gains follows an 818,000 downward revision for the year ending in March 2024, supporting the case for the Federal Reserve to consider a larger rate cut of 50 basis points during the policy meeting next week.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.8% to 43,809.31, and the broader Topix added 0.6% to 3,140.79.
Tokyo Electron increased 0.6% to ¥21,150.0, Advantest Corp. gained 3.2% to ¥13,125.0, and Disco Corp. jumped 3.3% to ¥39,000.0.
Toyota Motor Corp. decreased 1.2% to ¥2,913.50, Honda Motor declined 1.8% to ¥1,666.0, and Nissan Motor fell 0.6% to ¥354.90.
Japan WED
Akira Ito
10 Sep, 2025
Tokyo
Technology stocks in Tokyo led gainers on Wednesday, driving broader benchmark indexes higher.
The Nikkei 225 Stocks Average gained 0.8%, and the broader Topix increased 0.6% as domestic manufacturers' sentiment hit a three-year high.
The Reuters Tankan Index for Japanese manufacturers rose to +13 in September, as trade uncertainties eased following a trade deal with the U.S.
The index reached its highest level since August 2022, as sentiment improved in six of the nine manufacturing industries, led by automobile and transportation machinery.
However, the index is expected to ease to +11 by December amid persistent worries about a fragile domestic economy.
Investor sentiment in Tokyo improved following the downward revision of U.S. payroll gains over the 12-month period to March 2025, indicating that the labor market is weaker than previously estimated.
The Bureau of Labor Statistics said that the U.S. economy added 911,000 fewer jobs over a year ending in March 2025, which accounts for a much wider set of data covering nearly 95% of the labor force.
The agency previously estimated that the U.S. economy added about 1.79 million jobs in a year ending in March 2025.
The sharp annual downward revision to the payroll gains follows an 818,000 downward revision for the year ending in March 2024, supporting the case for the Federal Reserve to consider a larger rate cut of 50 basis points during the policy meeting next week.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.8% to 43,809.31, and the broader Topix added 0.6% to 3,140.79.
Tokyo Electron increased 0.6% to ¥21,150.0, Advantest Corp. gained 3.2% to ¥13,125.0, and Disco Corp. jumped 3.3% to ¥39,000.0.
Toyota Motor Corp. decreased 1.2% to ¥2,913.50, Honda Motor declined 1.8% to ¥1,666.0, and Nissan Motor fell 0.6% to ¥354.90.
China's Industrial Overcapacity and Weak Demand Keep Deflation Alive
Li Chen
10 Sep, 2025
Hong Kong
China's benchmark indexes advanced on Wednesday as investors raised expectations for interest rate cuts following a steeper-than-expected decline in inflation.
The Hang Seng Index increased 1%, and the mainland-focused CSI 300 index edged up 0.2%, and the consumer price index fell more than expected in August.
China is struggling with an entrenched deflationary trend, as industrial oversupply and weak consumer demand keep prices in check. In addition, muted growth in exports limits businesses from clearing unsold inventories.
The Consumer Price Index in August declined 0.4% from a year ago, according to the latest data released by the National Bureau of Statistics on Wednesday.
The decline in inflation was the steepest in six months following a flat reading in July, driven by the largest fall in food prices in nearly four years.
The decline in food prices accelerated to 4.3% from 1.6% in July, with broad-based decreases across several categories.
Core inflation in August, which excludes volatile food and energy prices, increased 0.9% from a year ago.
In addition, the producer price index decreased 2.9% from a year ago in August, easing from July's 3.6% decline, according to a separate report released by the NBS.
Factory-gate prices in August declined for the 35th consecutive month of contraction, confirming that price pressures are likely to persist for several months with weak demand and persistent overcapacity.
China Indexes and Stocks
The Hang Seng Index increased 0.9% to 26,181.41, and the mainland-focused CSI 300 index rose 0.2% to 4,445.81.
Alibaba Group Holding increased 2.2% to HK$144.80, Meituan advanced 3.3% to HK$103.0, and Tencent Holdings gained 1.6% to HK$637.0.
Li Auto added 0.9% to HK$95.90, BYD edged up 0.4% to HK$97.0, and Xpeng Inc. advanced 0.9% to HK$81.55.