Japan's Jobless Rate Eased In February, Business Sentiment Index Dropped to One-Year Low

Akira Ito
01 Apr, 2025
Tokyo

Benchmark indexes in Tokyo lacked direction in Tuesday's trading, and investors reviewed the latest update on the job market and business sentiment. 

The Nikkei 225 Stock Average closed nearly unchanged, and the broader TOPIX edged higher after the jobless rate declined to 2.4% in February from 2.5% in the previous month. 

The relatively tight labor market conditions supported the case for the Bank of Japan to raise rates at the next meeting.

The number of employed persons increased by 400,000 from a year ago to 67.7 million, extending labor market expansion to the 31st consecutive month.

In addition, the jobless rate eased to 1.65%, and the total number of unemployed decreased by 120,000 to 1.74 million, the Ministry of Internal Affairs and Communications reported Tuesday.

Among those not employed, voluntary separations declined by 1.3% to 760,000, but those seeking jobs soared 11.6% to 480,000.

Investors also reviewed the decline in the business sentiment index in the first quarter among the large businesses released by the Bank of Japan. 

The Bank of Japan Tankan index of sentiment among large manufacturers fell to 12 in the first quarter from 14 in the previous quarter and dropped to the lowest level in a year. 

The U.S. trade policy uncertainty dampened the sentiment index, and the 25% import tax on Japanese vehicles also negatively impacted the mood among business executives. 

 

Japan Indexes and Socks 

The Nikkei 225 Stock Average edged up 0.01% to 35,624.48, and the broader TOPIX index added 0.1% to 2,661.73.  

Toyota Motor Corp advanced 0.8% to ¥2,630.50, Honda Motor gained 0.2% to ¥1,345.0, and Nissan Motor decreased 1.2% to ¥374.30. 

Tokyo Electron added 0.7% to ¥20,250.0, Disco Corp. jumped 0.8% to ¥30,120.0, and Advantest Corp. dropped 2.9% to ¥6,283.0.

Marubeni Corp. jumped 0.7% to ¥2,396.0, Itochu Corp. added 1.4% to ¥6,995.0, Sumitomo Corp. gained 1.3% to ¥3,414.0, and Mitsui & Company inched higher by 0.9% to ¥2,825.0.

Seven & I Holdings Co., Ltd. added 0.4% to ¥2,171.0, Takashimaya Co., Ltd. declined 0.8% to ¥1,200.0, Fast Retailing jumped 0.9% to ¥44,440.0, and Isetan Mitsukoshi fell 1.3% to ¥2,111.50.