Japan's Retail Sales Growth Accelerated to 3-Month High, Unemployment Rate Held Steady, Industrial Output Shrank In November

Akira Ito
27 Dec, 2024
Tokyo

Stock market indexes extended weekly gains in a broad rally after retail sales rose at a faster than expected pace. 

The Nikkei 225 Stock Average jumped 1.8%, and the broader TOPIX advanced 1.2% amid gains in all sectors. 

For the week, the Nikkei 225 increased 3.5%, and the broader TOPIX gained 3.3%, and investors held out for the Bank of Japan to delay its rate cut after the spring wage negotiations. 

On the economic front, Japan's retail sales rose annually by 2.8% in November from a downwardly revised 1.3% rise in October, the Ministry of Economy, Trade & Industry reported Friday. 

Retail sales advanced for the 32nd consecutive month and the fastest increase since August, after rising wages continued to support consumption. 

However, industrial output declined at an annual pace of 2.8% in November, following a rise of 1.4% in October, a separate report by the industry showed. 

On a monthly basis, industrial output fell 2.3% following a rise of 2.8% in October, and it was the first decline in three months. 

Production of motor vehicles declined 4.3% compared to a rise of 6.4%; production machinery fell 9.1% compared to a rise of 21.6%, and fabricated metals decreased 5.7% compared to an increase of 7.8% in the previous month, respectively. 

Japan's jobless rate held steady for the second month in a row at 2.5% in November, according to a separate report by the ministry. 

The number of unemployed increased by 10,000 to 1.72 million, while those employed rose by 100,000 to a record 68.08 million. 

The labor force, which includes employed and unemployed, increased by 130,000 to 69.80 million, and those not attached to the labor force fell by 160,000 to 40.04 million. 

However, the jobs-to-applications ratio of 1.25 matched the rate in the previous month and held its highest level in six months. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 1.8% to 40,275.54, and the broader TOPIX advanced 1.2% to 2,800.25. 

Electronic component makers were among the leading gainers in Tokyo in Friday's trading. 

Nidec Corp. jumped 4.2% to ¥2,844.50, Murata Manufacturing advanced 3.2% to ¥2,565.50, and Renesas Electronics increased 4.1% to ¥2,079.0. 

Toyota Motor Corp. increased 1.1% to ¥3,175.0, Honda Motor advanced 1.5% to ¥1,522.0, Nissan Motor dropped 9.9% to ¥497.40, and Suzuki Motor added 2.1% to ¥1,795.0. 

Seven & I Holdings increased 1% to ¥2,475.50, Isetan Mitsukoshi gained 1.7% to ¥2,757.0, J. Front Retailing decreased 0.1% to ¥2,156.50, and Fast Retailing Co. Ltd advanced 1.3% to ¥54,850.0.