Japan Indexes Trimmed Weekly Losses, Real Household Spending Advanced In May

Akira Ito
04 Jul, 2025
Tokyo

Japan's stock indexes edged higher for the second consecutive day and trimmed weekly losses amid trade uncertainty. 

The Nikkei 225 Stock Average edged up 0.1%, and the broader Topix was nearly unchanged. 

Investor sentiment has wavered ahead of the looming deadline on July 9, and trade negotiators are signaling a lack of progress after eight weeks of negotiations.

The U.S. has threatened a 25% tariff on Japanese vehicles and parts and proposed to shift a greater share of defense spending to Japan. 

Moreover, the U.S. has also pushed Japan to import a higher share of rice, despite Japan importing nearly half of 770,000 tons of rice free of tariff from the U.S. 

On the economic front, Japan's real household spending increased in May at the fastest pace since August 2022, government data showed Friday. 

Real household spending increased 4.7% from a year ago to 316,085 ($2,200), the Ministry of Internal Affairs and Communication said. 

Food spending, which makes up about 30% of household expenditures, edged up 1%, amid stable fresh vegetable and fruit prices, and people dined out more frequently. 

The average monthly income of salaried households with at least two individuals increased 0.4% to 522,318 yen, advancing for the first time in five months. 

Monthly spending data are keenly awaited by investors, because private consumption makes up more than half of Japan's gross domestic product. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.1% to 39,834.08, and the broader Topix was nearly unchanged at 2,828.88. 

For the week, the Nikkei 225 Stock Average is down 2.2%, and the Topix fell 1.3%. 

 

Japan Stock Movers 

Tokyo Electric Power Company increased 2.7% to ¥541.0, and Keyence Corp. edged up 1.7% to ¥57,000.0. 

Mizuho Financial Group added 2.4% to ¥4,055.0, Sumitomo Mitsui Financial Group edged up 0.9% to ¥3,692.0, and Mitsubishi UFJ Financial Group increased 1.4% to ¥2,015.50.