Abenomics and Koizumi Duel Out In LDP's Leadership Race

Akira Ito
29 Sep, 2025
Tokyo

Japan's benchmark indexes turned lower on Monday amid an uncertain political and trade outlook. 

The Nikkei 225 Stock Average fell 0.7%, and the broader Topix dropped 1.4% as investors prepared for a flood of economic updates in the week ahead. 

Investors are looking forward to the release of Japan's confidence index among large businesses, retail sales, industrial production, construction orders, jobless rate, and housing starts.

As the LDP leadership race narrows to two candidates, investors are looking for details about the possible trade policy, defense partnerships, and government budgetary priorities. 

Ahead of the party's leadership election on October 4, and by default, the next prime minister, Sanae Takaichi, and Shijiro Koizumi are leading in early party votes, suggesting that the

On the earnings front, investors are awaiting interim results from Nishimatsuya Chain, Shimamura Co. Ltd., Takara Company, Nippon Filcon Co., Fast Retailing, Nitori Holding, and YASKAWA Electric Corp.

This week in Asia, South Korea, the Philippines, Indonesia, and Australia are scheduled to release their international trade data. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.7% to 45,052.82, and the broader Topix dropped 1.4% to 3,143.02. 

Financial stocks decreased for the second session in a row after July's BoJ meeting showed policymakers are open to continuing the rate-hike campaign if economic growth and consumer inflation evolve as expected. 

Sumitomo Mitsui Financial Group decreased 1.4% to ¥4,115.0, Mitsubishi UFJ Financial declined 1.2% to ¥2,331.50, and Mizuho Financial dropped 1.6% to ¥4,932.0.