Japan's Indexes Closed In September, First Decline In Six Months

Akira Ito
01 Oct, 2025
Tokyo

Japan's market indexes turned lower amid mixed economic signals and worries of a prolonged U.S. government shutdown. 

The Nikkei 225 Stock Average dropped 1%, and the broader Topix index declined 1.5% as investors assessed the future rate path and outlook for international trade. 

The Tankan survey of 8,900 companies showed an improvement in business sentiment in the September quarter, according to a monthly report released by the Bank of Japan.

The sentiment index among manufacturing firms slightly increased from the second quarter, but the expectations for business conditions were stable among smaller businesses. 

The sentiment index for manufacturing businesses improved to 14 from 13, and for non-manufacturing businesses, it remained stable at 34 in the third quarter, respectively.

Meanwhile, economic data released earlier showed weaknesses in retail sales and industrial production. 

August's retail sales declined 1.1%, and industrial production fell 1.2% from a year ago, respectively. 

The Bank of Japan's Summary of Opinions highlighted a divide among policymakers, as some policymakers preferred to hike rates if economic growth and inflation are met, while others advocated holding to stem off the negative impact of the U.S. tariffs. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 1% to 44,464.33, and the broader Topix dropped 1.5% to 3,091.56. 

IHI Corp. decreased 6.3% to ¥2,585.50, Fujikura Ltd. dropped 1.2% to ¥14,280.0, and Mitsubishi Heavy Industries fell 3.3% to ¥3,753.0. 

Tokyo Electron declined 1.5% to ¥25,955.0, Advantest Corp. increased 0.9% to ¥14,775.0, and Disco Corp. decreased 0.6% to ¥46,250.0. 

Nippon Yusen Corp. fell 0.5% to ¥5,028.0, Mitsui O.S.K. Lines Ltd. decreased 1.4% to ¥4,430.0, and Kawasaki Kisen Kaisha Ltd. declined 1.3% to ¥2,080.0.