Japan's Mixed Economic Updates Highlighted Uneven Recovery

Akira Ito
26 Dec, 2025
Tokyo

Japan's market indexes attempted to rebound on Friday after lackluster trading in three previous sessions. 

The Nikkei 225 Stock Average advanced 0.7%, and the broader Topix inched slightly higher amid receding worries about an artificial intelligence bubble. 

Stock market indexes extended weekly gains as investors reviewed the latest updates on industrial production, retail sales, jobless rate, and Tokyo-area inflation. 

 

Industrial Output Weakened In November

Japan's industrial output decreased 2.1% from a year ago in November, the Ministry of Economy, Trade and Investment said in its monthly report on Friday. 

Industrial production fell 2.6% from the previous month, weakened by a decline in production of personal computers and lithium-ion batteries.  

The government agency retained its cautious outlook, confirming that production "fluctuates indecisively."  

 

Jobless Rate Held Steady Amid Labor Shortage

Japan's jobless rate held steady at 2.6% in November, amid stable hiring conditions, according to the latest update from the Ministry of Internal Affairs. 

The number of people without jobs fell 2.2% to 1.81 million, and those with jobs increased 0.1% to 68.51 million after adjusting for seasonal factors.  

The job seekers increased 4.0% to 520,000, and the agency said that many people may have acquired a job amid a labor shortage in manufacturing and related industries. 

New job offers declined 17.2% in retail and wholesale and fell 14.2% in accommodation and restaurant services as businesses adopt labor-saving technologies. 

The job availability ratio was unchanged from October at 1.18 in November, meaning 118 jobs were available for every 100 job seekers. 

 

Rising Wages Extend Retail Sales Gains 

Japan's retail sales increased for the third consecutive month, according to a separate report released by the Ministry of Economy, Trade and Industry. 

Retail sales growth slowed to an annual rate of 1% in November from a 1.7% increase in the previous month. 

Steady wage gains supported a rise in consumer spending ahead of the fast-approaching holiday period, and a rebound in inbound tourism contributed to the advance. 

Sales increased for automobiles by 3.9%, pharmaceuticals by 5.6%, and machinery and equipment by 7.1%; however, sales for apparel and personal goods decreased by 7.5%, fuel by 5.6%, and non-store retailers by 5.5%.  

 

Japan Indexes and Stocks

The Nikkei 225 Stock Average increased 0.7% to 50,770.10, and the broader Topix edged up a fraction to 3,419.52. 

Stocks advanced, and the Japanese yen traded at 156.02 amid speculation that the Bank of Japan is likely to increase interest rates at a slower-than-expected pace in 2026.

Tokyo Electron increased 1% to ¥34,130.0, Advantest Corp. gained 2.2% to ¥20,230.0, Softbank Group jumped 2.2% to ¥17,895.0, and Fujitsu edged up 0.4% to ¥4,243.0. 

Fujitsu advanced on a report that the company has agreed to join a group led by Softbank to develop a next-generation memory for artificial intelligence and supercomputers.