Japan's Indexes Scaled New Highs, Producer Price Inflation Edged Higher

Akira Ito
11 Sep, 2025
Tokyo

Japan's indexes advanced for the second consecutive day this week, and investors reviewed the latest update on business sentiment. 

The Nikkei 225 Stock Average increased 0.8%, but the broader Topix decreased 0.2% in cautious trading amid worries about the constantly changing U.S. trade policy. 

The U.S. president is looking to impose outsized tariffs on drugs imported from China, and the White House may target pharma shipments from Japan, India, and the European Union.

The worries about the never-ending changes to the U.S. policy were compounded by the legal status of sweeping import taxes after two U.S. court rulings.

 

Japan's Business Sentiment Index Rebounded In Third Quarter

Closer to home, Japan's Business Survey Index for large manufacturing firms rebounded to 3.8% in the third quarter, said the Cabinet Office on Thursday. 

The index, which acts as a key measure of economic health, rebounded from -4.8% in the previous quarter and returned to positive territory in three quarters. 

The sentiment improved after U.S. businesses front-loaded ahead of the newly imposed 15% blanket tariffs. 

Large manufacturers held out for the continued improvement in the business environment, and the index for the fourth quarter improved to 3.9%, but edged lower to 3.3% for the first quarter of 2026.

 

Japan's Producer Price Inflation Accelerated In August

Japan's producer price inflation edged higher in August amid accelerating prices in transportation equipment, general-purpose machinery, and food products.

The annual increase in the producer price index accelerated to 2.7% from the marginally revised 2.5% in the previous month, the Cabinet Office reported Thursday. 

The price inflation for foods and beverages accelerated to 5.0% from 4.7%, general-purpose machinery rose to 4.0% from 3.7%, and transportation equipment edged up to 2.0% from 1.8%. 

However, on a monthly basis prices decreased 0.2%, following an upwardly revised 0.3% increase in July.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average added 0.8% to 44,175.51, and the broader Topix fell 0.2% to 3,136.53. 

Toyota Motor decreased 1.3% to ¥2,876.50, Honda Motor declined 0.9% to ¥1,651.0, and Nissan Motor edged 0.4% to ¥356.20. 

Nippon Yusen KK decreased 0.1% to ¥5,590.0, Mitsui O.S.K. Lines Ltd. fell 0.8% to ¥4,840.0, and Kawasaki Kisen Kaisha Ltd. fell 0.2% to ¥2,327.50.