Nikkei Closed Down Second Consecutive Week, Household Spending Eased In November

Akira Ito
10 Jan, 2025
Tokyo

Stock market indexes in Tokyo closed down for the third session in a row and extended weekly losses to the second consecutive week. 

The Nikkei 225 stock average fell 1%, and the broader TOPIX declined 0.8%. 

For the week, the Nikkei 225 declined 1.3%, and the broader TOPIX fell 2.2%.

Market sentiment was cautious in Tokyo amid rate path uncertainties and potential slowdown in exports to China amid rising trade tensions with the U.S. 

 

Japan's Real Household Spending Shrank In November 

On the economic front, Japan's household spending and income, adjusted for inflation, decline in November as consumers closely watched spending amid rising costs of food and energy. 

The average household spending, for a family of two or more, declined 0.4% in real terms to 295,518 yen, or $1,900, according to a report released by the Ministry of Internal Affairs and Communications on Friday. 

In nominal terms, household spending rose 3% from a year ago. 

Consumers restricted spending to basic items and avoided discretionary spending for the third consecutive month. 

Spending on apparel and footwear declined 13.7%, furniture and electric appliances dropped 13.8%, food items decreased 0.6%, and spending for recreation and leisure activities eased 2.9%. 

However, housing-related spending, including kitchen renovation, soared 18.7%, an increase for the first time in four months. 

Meanwhile, the real average household income, adjusted for inflation, increased 0.7% from a year ago to 514,409 yen. 

The nominal income advanced 4.1% from a year ago, partly because of winter bonuses. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1.1% to 39,190.40, and the broader TOPIX dropped 0.8% to 2,714.12. 

Stock market indexes declined following the losses in the shipbuilding, power, and insurance sectors. 

Tech stocks advanced in choppy trading amid growing worries of rising interest rates in the U.S., dampening appetite for riskier investments. 

Advantest Corp. gained 5% to ¥10,380.0, Tokyo Electron decreased 0.1% to ¥27,025.0, and Disco Corp. fell 1.4% to ¥48,000.0. 

Mitsui Mining & Smelting Co. Ltd. dropped 6.8% to ¥4,524.0, Tokyo Electric Power Company Holding decreased 1.7% to ¥434.80, and Furukawa Electric rose 3.4% to ¥7,259.0. 

Fast Retailing declined 6.5% to ¥48,700.0 after the apparel retailer reported better-than-expected revenue and profit in the December quarter, but results were weaker than expected in China.