Japan's Real Wages Declined 4th Consecutive Month In November, Nikkei 225 Dropped 1%

Akira Ito
09 Jan, 2025
Tokyo

Stock market indexes in Tokyo edged lower in a choppy session, and investors reviewed the latest update on wages. 

The Nikkei 225 stock average fell 1%, and the broader TOPIX fell 1.2% amid rate path uncertainties.

Japan's real wages, adjusted for inflation, declined 0.3% from a year ago, the Ministry of Health, Labour, and Welfare reported Thursday. 

Nominal cash earnings rose 3% from a year ago in November, but the real wages declined for the fourth month in a row, a key indicator of consumers' purchasing power. 

The average total cash earnings, or nominal wages including base and overtime pay, increased 3.0% to 305,832 yen, or $1,900, and rose for the 35th month in a row. 

Meanwhile, consumer prices used to calculate wages rose at a faster pace of 3.4% in November, compared to 2.6% in the previous month. 

Excluding bonuses and nonscheduled payments, average wages advanced 2.7% to 265,082 yen, the largest increase in 32 years, the report showed.

The latest household earnings data supports the case for the Bank of Japan to wait a little longer before increasing its benchmark interest rate. 

The Japanese yen weakened to 158.10 against the U.S. dollar, as the Bank of Japan is less likely to raise rates at its next two-day policy meeting ending on January 24. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1% to 39,605.09, and the broader TOPIX index fell 1.2% to 2,735.92. 

Technology and automobile makers led decliners in active trading in Tokyo. 

Advantest Corp. decreased 3.7% to €59.70, and Tokyo Electron declined 1.8% to ¥27,035.0; Lasertec Corp. fell 5.3% to ¥15,505.0. 

Nissan Motor Co. Ltd. dropped 3.6% to ¥450.40, Honda Motor Co. Ltd. fell 2.6% to ¥1,553.50, and Toyota Motor Co. Ltd. declined 2.2% to ¥3,005.0. 

Seven & I Holdings Co. Ltd. eased 1% to ¥2,374.50, Isetan Mitsukoshi Ltd. decreased 1.8% to ¥2,539.50, Takashimaya Co. Ltd. rose 0.7% to ¥1,236.50, and Fast Retailing Co. Ltd. advanced 0.6% to ¥52,100.0.