Japan Releases Stockpiled Rice Ahead of Summer Election

Akira Ito
03 Jun, 2025
Tokyo

Japan's stock market indexes rebounded after easing in the previous two sessions despite rising global trade tensions. 

The Nikkei 225 Stock Average edged up a fraction, and the Topix index decreased 0.2% amid worries about the lack of progress in the U.S.-Japan trade talks. 

Steel stocks traded down after the U.S. president announced he would impose a 50% import tax on steel imports from the European Union, raising the prospects of potential ripple effects on Japan's steel industry. 

Japan's government finally released 201,000 tons of rice to stem the surge in price over the last year.

The government expedited the sale of 5 kg rice bags for 2,000 yen to a network of stores across the nation after the bag's price shot up to 4,285 yen, or about $30, in mid-May. 

The move is likely to ease financial stress on families, but the government may have to release at least an additional 150,000 tons of rice over the next three months. 

Rice prices shot up in 2024 after a record heat wave damaged rice crops, and record tourism and the fear of a megaquake contributed to a demand surge over the last nine months. 

The average price eased to 4,260 yen for a 5 kg bag in the week through May 25, down 25 yen from the previous week. 

In the absence of major economic news, investors focused on global developments, and rising trade tensions between the U.S. and China dampened the prospect of a trade agreement in the immediate future. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.1% to 37,491.06, and the broader Topix index decreased 0.2% to 37,491.06. 

Seven & I Holdings increased 1.5% to ¥2,226.50, and the company's subsidiary Ito-Yokado secured about 5,000 tons of rice from the government to distribute over the next two months. 

AEON Co. Ltd. declined 0.4% to ¥4,396.0, and Pan Pacific International Holdings Corp. decreased 0.8% to ¥4,693.0.