Market Updates

Nikkei 225 Stock Average Extended Weekly Losses to 5%, Household Spending Edged Higher In October

Akira Ito
07 Nov, 2025
Tokyo

    Japan's benchmark indexes extended weekly losses driven by another down day in semiconductor equipment stocks.

    The Nikkei 225 Stock Average decreased 1.7%, and the broader Topix declined 0.9% as investors reacted to a sharp sell-off in AI stocks in overnight trading in New York.

    The mega-cap tech stocks dropped between 2% and 5% in New York amid worries of stretched valuation, circular AI spending, and growing skepticism about capital spending outlays. 

     

    Japan's Household Spending Advanced Fifth Consecutive Month

    Japan's real household spending advanced for the fifth consecutive month in September, and income stayed flat, according to the latest data released by the Ministry of Internal Affairs and Communication. 

    Real spending among households of two or more increased 1.8% from a year ago to 303,214 yen, or $2,000, driven by an 11.5% increase in transportation and communication and a 6.4% rise in culture and recreation spending. 

    Medical and healthcare spending jumped 11.1% from a year ago, driven by a higher expenditure in dental care.

    Household income was flat, at 510,935 yen, compared to the previous month, according to data released by the ministry. 

     

    Japan Indexes and Stocks 

    The Nikkei 225 Stock Average decreased 1.7% to 50,037.73, and the broader Topix index fell 0.9% to 3,285.11.  

    For the week, the Nikkei 225 plunged 4%, and the Topix declined 1.5% amid persistent weakness in the AI supply chain companies.  

    Softbank Group decreased 7% to ¥21,700.0, Tokyo Electron dropped 1.3% to ¥32,800.0, Advantest Corp. fell 5.5% to ¥19,960.0, and Disco Corp. declined 3.9% to ¥48,520.0. 

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