Japan's Real Wages Declined for Eleventh Consecutive Month In November

Akira Ito
08 Jan, 2026
Tokyo

Japan's stock market indexes declined for the second week in a row as investors booked profit in high-flying technology and financial stocks. 

The Nikkei 225 Stock Average decreased 1.1%, and the broader Topix Index fell 0.5% amid rising macroeconomic and geopolitical uncertainties. 

Benchmark indexes erased gains recorded earlier in the week, as the investor enthusiasm began to fade after China imposed tighter restrictions on military-use goods and technology shipments to Japan.  

 

Japan's Real Wages Extended 11-Month Decline to November

Japan's real wages dropped in November, marking the fall for the 11th month in a row, according to the latest report released by the Ministry of Health, Labour and Welfare. 

Nominal wages rose 0.5% from a year ago to 310,202 yen, or $1,980, slower than an increase of 2.5% in the previous month, driven by a sharp decrease of 17% in special bonus payments. 

Salaried employees receive bonuses in June, July, November, and December when winter and summer bonuses are paid.  

The ministry stated that the preliminary November data often understates wages, as many winter bonuses are still not accounted for. 

Meanwhile, inflation-adjusted wages decreased 2.8% from a year ago, the largest contraction since January 2025, after consumer prices rose 3.3% in November. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1.1% to 51,311.22, and the broader Topix Index declined 0.5% to 3,492.96. 

Defense stocks were in focus amid rising trade tensions between Japan and China, and the world's second-largest economy is likely to place additional tighter export controls, including shipments of rare earth materials.

IHI Corp. jumped 1.4% to ¥3,163.0, Kawasaki Heavy Industries gained 3.3% to ¥12,005.0, and Mitsubishi Heavy Industries advanced 2.6% to ¥4,269.0.  

Semiconductor equipment makers traded down for the second consecutive session after investors avoided taking additional exposure to the sector. 

Tokyo Electron decreased 3.3% to ¥36,900.0, Advantest Corp. declined 1.8% to ¥20,245.0, and Softbank Group dropped 6.7% to ¥4,337.0.