Takaichi's Large Stimulus Proposal Stokes Debt Worries, 10-Year Bond Yield at New 17-Year High

Akira Ito
19 Nov, 2025
Tokyo

Japan's stock market indexes struggled to stay above the flatline for the fourth session in a row amid elevated market anxieties. 

The Nikkei 225 Stock Average edged down 0.1%, and the Topix inched higher 0.1% as investors reviewed the latest government bond auctions. 

The Japanese yen hovered at a ten-month low of 155.40 against the U.S. dollar as Prime Minister Sanae Takaichi's administration prepares for an additional spending budget of 25 trillion yen. 

The plan was sharply higher than last year's 13.9 trillion extra budget, stoking debt worries. 

Bank of Japan Governor Kazuo Ueda stated that Prime Minister Takaichi made no special requests regarding monetary policy. Ueda reaffirmed the central bank's commitment to gradually raise interest rates toward its 2% target.

On the economic front, Japan's machinery orders increased sharply in September, according to the Cabinet Office. 

Overall machinery orders accelerated to an annual increase of 11.6% in September from 1.6% in August. 

Core machinery orders are considered a key yet volatile signal for the capital expenditure in the coming six to nine months.  

Core machinery orders, which exclude volatile ship and electric power equipment, advanced 4.2% from the previous month to 927.8 billion yen. 

The increase in core machinery orders was led by a 23.3% surge in manufacturing orders to 515.2 billion yen, while non-manufacturing orders fell 8.7% to 428.3 billion yen.  

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.1% to 48,674.89, and the broader Topix added 0.1% to 3,255.16. 

AI supply chain-linked stocks faced another day of volatility in Tokyo's trading. 

Softbank Group inched up 0.3% to ¥18,870.0, Advantest Corp. declined 1.8% to ¥18,925.0, and Tokyo Electron fell 1.5% to ¥30,980.0. 

Toyota Motor Corp. increased 0.7% to ¥3,049.00, Honda Motor Co. Ltd. gained 1.8% to ¥1,518.0, and Nissan Motor Co. Ltd. added 1.1% to ¥355.10. 

Fast Retailing Co. Ltd. added 1% to ¥54,070.0, Seven & I Holding added 2.2% to ¥2,074.50, and Takashimaya Co. Ltd. inched up 0.4% to ¥1,617.50.