Japan's Indexes Faced Headwinds Amid Rising US-China Trade Tensions

Akira Ito
23 Oct, 2025
Tokyo

Japan's markets plunged on Thursday, and investors booked profits and awaited the release of fiscal measures from the newly elected prime minister. 

Sanae Takaichi's government is expected to release a fiscal stimulus package as early as next week, larger than last year's 13.9 trillion yen. 

The government's measures are likely to focus on providing additional fuel and utilities assistance and subsidies for household appliances and equipment.  

Stocks in Japan declined, tracking overnight losses in New York, amid rising trade tensions between Japan and the U.S. 

The leaders of two nations are expected to meet on the sidelines of the APEC meeting in South Korea, and the U.S. president announced possible restrictions on the sale of software to China effective November 1. 

Japan's stocks faced headwinds as investors worried about the sustainability of the coalition between the LDP and the Japan Innovation Party.

The yen weakened 0.3% to 152.35 against the U.S. dollar amid rising expectations that the Bank of Japan may prolong its ultra-loose monetary policy. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1.7%, and the broader Topix fell 0.6% to 3,246.56. 

Toyota Motor Corp. decreased 0.4% to ¥3,092.0, Honda Motor Co. Ltd. decreased 1.1% to ¥1,601.50, and Nissan Motor Co. Ltd. fell 0.3% to ¥376.60. 

Sony Group declined 0.2% to ¥4,392.0, Canon Inc. decreased 0.8% to ¥4,529.0, and Fujitsu Ltd. decreased 0.2% to ¥3,845.0. 

Tokyo Electron fell 0.4% to ¥29,630.0, Advantest Corp. fell 3.7% to ¥16,465.0, and Lasertec Corp. dropped 2.8% to ¥20,815.0. 

Nippon Yusen KK added 0.9% to ¥5,172.0, Mitsui O.S.K. Lines Ltd. added 0.5% to ¥4,450.0, and Kawasaki Kisen Kaisha Ltd. advanced 1% to ¥2,144.50.