Tokyo Stocks Struggled After Powell's Comments, Yen In Focus On 40th Anniversary of Plaza Accord

Akira Ito
24 Sep, 2025
Tokyo

Benchmark indexes in Tokyo turned lower following the weakness in overnight trading on Wall Street, as investors booked profit after the recent run-up. 

The Nikkei 225 Stock Average inched lower 0.01%, the broader Topix edged higher 0.1%, and the Japanese yen hovered near the 148 level against the U.S. dollar. 

Tokyo's market sentiment remained weak following cautious comments from Fed Chair Jerome Powell noting uncertainties around the rate path amid a confusing economic backdrop.

Powell also highlighted stretched market valuations and a marked slowing in supply and demand for workers, "an unusual development in the labor market."

"Tariff increases will likely take some time to work their way through supply chains. As a result, this one-time increase in the price level will likely be spread over several quarters and show up as somewhat higher inflation during that period," added Powell while delivering his comments at a gathering in Warwick, Rhode Island. 

Stocks on Wall Street turned lower following Powell's comments, and investors dialed down the expectations for a rate cut at the end of the next policy meeting on October 29.

The Japanese yen was in focus as Japan marked the 40th anniversary of the U.S.-led Plaza Accord. 

On September 22, 1985, the U.S. engineered the decline of the dollar in coordination with Japan, the UK, France, and West Germany. 

The U.S. dollar devaluation contributed to the bursting of the economic bubble in Japan and the start of what is known as the lost three decades.

The current U.S. tariff regime "does not align with the realities of the U.S. economy," said former Bank of Japan Governor Haruhiko Kuroda in an interview with Mainichi Shimbun. 

"Unlike 40 years ago when the U.S. economy was weak, the country maintains a high growth rate today. The tariff escalation does not match the economic reality," Kuroda clarified.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average slipped 0.01%, and the broader Topix edged higher 0.1% to 3,166.80. 

Toyota Motor Corp. decreased 1.2% to ¥2,925.0, Honda Motor fell 0.9% to ¥1,646.0, and Nissan Motor declined 0.6% to $4.98. 

Seven & I Holdings gained 0.9% to ¥2,011.50, Fast Retailing decreased 2.2% to ¥45,640.0, and Isetan Mitsukoshi declined 1.1% to ¥2,896.0.