Japan Indexes Extend Losses to Third Consecutive Session, Manufacturing Index Extends Contraction to Ninth Month

Akira Ito
24 Mar, 2025
Tokyo

Stock market indexes in Tokyo edged lower for the third session in a row amid looming U.S. tariffs, and geopolitical uncertainties weighed. 

The Nikkei 225 Stock Average decreased 0.2%, and the broader TOPIX declined 0.5%, as investors reviewed the latest update on manufacturing activities. 

The au Jibun Bank Japan Manufacturing PMI index declined to 48.3 in March, falling from 49.0 in the previous month. 

The index showed contraction in private sector manufacturing activities for the ninth consecutive month and fell at the sharpest pace since March 2024. 

Despite the rise in export orders, overall sales and new orders declined at a sharper pace, and input and output price inflation eased.  

The composite index of private sector activities contracted for the first time in five months, a separate report released by the S&P Global on Monday showed. 

In Friday's trading, Wall Street indexes trimmed losses for the fifth week in a row as more evidence of tariff turmoil and government cuts emerged.

Nike and Accenture joined a long list of other companies last week and warned of a sharp slowdown this year.

Tariff uncertainties are forcing U.S. businesses to pause additional investments, and consumers are faced with higher bills because of the ever-growing list of items facing import taxes.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.2% to 37,608.49, and the broader TOPIX dropped 0.5% to 2,790.88. 

Defense stocks led the most actively traded stocks in Monday's trading. 

IHI Corp. decreased 1.1% to ¥11,045.0, Mitsubishi Heavy Industries declined 2.2% to ¥2,811.50, and Kawasaki Heavy Industries jumped 0.4% to ¥9,569.0.

Marubeni Corp. declined 0.6% to ¥2,530.0, Itochu Corp. fell 1.3% to ¥7,155.0, Mitsubishi Corp. dropped 1% to ¥2,760.0, and Mitsui Corp. eased 1% to ¥2,760.0.