Japan's Machinery Orders Soared In March, Business Activities Growth Remained Subdued In April

Akira Ito
22 May, 2025
Tokyo

Japan's stock market indexes fell in choppy trading and extended two-week losses, tracking the market decline on Wall Street. 

The Nikkei 225 Stock Average decreased 1%, and the broader Topix index declined 0.9%, and manufacturing activities remained in contraction for the twelfth month in a row in April. 

The au Jibun Bank Japan Manufacturing PMI edged higher to 49.0 from 48.7 in March, according to the latest data published by S&P Global. 

The decline in activities was the softest since February amid a milder pace of declines in exports and new orders. 

Japan's service sector expanded for the second consecutive month in April, but the pace of increase slowed, according to a separate report published by S&P Global. 

The au Jibun Bank Japan Services PMI edged down to 50.8 in April from 52.4 in March amid weakening client demand and uncertainty over the future trade environment.  

Japan's core machinery orders, which excludes orders for ships and electric power companies, unexpectedly soared in March amid strong demand across both manufacturing and non-manufacturing sectors. 

Core machinery orders jumped 13% from the previous month and advanced 8.4% from a year ago to 1.01 trillion yen, reaching a two-decade high. 

Core machinery orders are volatile but are a key forward-looking indicator for capital spending over the next two to three quarters. 

Manufacturing orders advanced 8% to ¥459.3 billion, while non-manufacturing orders jumped 9.6% to ¥534 billion, according to a report released by the Cabinet Office. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1% to 36,890.83, and the broader Topix index declined 0.9% to 2,709.44. 

Advantest Corp. declined 3.2% to ¥6,784.0, Tokyo Electron dropped 2.4% to ¥22,680.0, and Disco Corp. fell 0.7% to ¥33,400.0. 

Marubeni Corp. fell 1.6% to ¥2,761.0, Itochu Corp. declined 2.1% to ¥7,444.0, and Sumitomo Corp. decreased 1.6% to ¥3,681.0.