Japan's Nikkei 225 Turned Lower, GDP Contracted In Third Quarter Amid Weak Exports

Akira Ito
17 Nov, 2025
Tokyo

Japan's benchmark indexes extended losses from the previous session, as investors reacted to the fast-developing global market gloom. 

The Nikkei 225 Stock Average decreased 0.3%, and the broader Topix fell 0.5% as the yen hovered at a one-year low. 

High-priced AI stocks faced additional selling pressure on Monday following volatile trading on Wall Street on Friday. 

 

Japan's GDP Contracted In the third quarter Amid U.S. Tariff Headwinds

Closer to home, the economy contracted at a slower than expected pace in the third quarter, according to the latest data released by the Cabinet Office. 

GDP contracted at an annual pace of 1.8% from a year ago, slower than the 2.5%, after exports of goods and services turned negative 1.2% compared to a growth of 2.3% in the second quarter. 

The net contribution of the exports eased to a negative 0.2% from a negative 0.3% in the period a year ago.  

Japan's goods exports contracted for four consecutive months since May before rebounding in September after the Trump administration lowered U.S. tariffs to 15% from 25% on August 7.  

The rising government spending supported a 2.2% increase in public demand, offset by a 1.8% decrease in private demand, driven by a 32.5% plunge in private residential investment. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.3% to 50,216.63, and the broader Topix declined 0.5% to 3,343.20. 

The AI supply chain-driven semiconductor equipment makers led the decliners in Tokyo's trading on Monday.

Tokyo Electron increased 3% to ¥32,820.0, Advantest Corp. gained 1.3% to ¥19,780.0, and Disco Corp. added 0.9% to ¥47,710.0. 

Softbank Group advanced 2.7% to ¥20,300.0, Sanrio Co. Ltd. plunged 7.9% to ¥5,354.0, Fast Retailing decreased 5.3% to ¥53,530.0, and Nidec declined 8.2% to ¥2,062.0.