Japan's Exports Jumped to Record High In December, Labor Unions Begin Spring Wage Talks

Akira Ito
23 Jan, 2025
Tokyo

Stock market indexes in Tokyo advanced to two-week highs ahead of the Bank of Japan's rate decisions tomorrow. 

The Nikkei 225 Stock Average increased 0.8% and the TOPIX advanced 0.5%, and both indexes extended gains for the fourth session in a row. 

The Bank of Japan officials in recent days have signaled a possible increase in rates on Friday and an upward revision in the inflation outlook. 

However, investors are divided, and many are anticipating the central bank to delay its rate increase after the ending of spring wage negotiations at large companies. 

After the historic wage increase of 5.1% in 2024, labor unions are hoping to negotiate a similar increase this year as wage talks kicked off this week.

However, smaller firms approved a far smaller wage increase, and most workers settled for a wage increase of between 1% and 2%. 

Japan's wages have been stagnant since 2000, as large Japanese companies expanded overseas and transferred manufacturing operations to China, Mexico, and the ASEAN region. 

On the economic front, Japan's exports increased 2.8% to 9.9 trillion yen, and imports advanced 1.8% to 9.7 trillion yen. 

Exports advanced for the third month in a row and reached a record high, and imports rose at the fastest pace in five months amid rising demand for energy and petroleum products.

Exports to China declined 3.0%, to the U.S. fell 2.1%, but rose to South Korea by 10.9% and to India by 5.5%. 

Imports from India soared 56.6%, from China gained 5.7%, and from the U.S. by 1.4%. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 0.8% to 39,958.87, and the broader TOPIX gained 0.5% to 2,751.74. 

Tokyo Electron declined 0.6% to¥27,430.0, Advantest Corp. gained 2.4% to¥10,050.0, and Disco Corp.¥50,860.0. 

SoftBank Group Corp. advanced 5.1% to ¥10,755.0 and extended two-day gains to more than 15% after the company was named in a group that claims to invest over $100 billion in building artificial intelligence infrastructure in the U.S. 

Seven &I Holdings declined 0.9% to ¥2,422.0, Fast Retailing added 1% to ¥49,570.0, Takashimaya increased 1% to ¥1,238.0, J Front Retailing advanced 3.2% to ¥2,074.0, and Aeon Co. Ltd. decreased 0.5% to ¥3,584.0. 

Isetan Mitsukoshi added 0.8% to ¥2,520.0.