Japan's Indexes Advanced In January Ahead of Elections and Yen Uncertainty

Akira Ito
30 Jan, 2026
Tokyo

Stock market indexes in Japan advanced for the fourth consecutive session on Friday as investor confidence held steady in the middle of earnings season. 

The Nikkei 225 Stock Average decreased 0.2%, and the broader Topix index fell 0.3%. 

In January, the Nikkei 225 advanced 6%, and the Topix gained about 5% as investors shifted their focus to corporate results. 

Japan's retail sales unexpectedly dropped 0.9% from a year ago in December. 

Retail sales reversed from an upwardly revised 1.1% in the previous month, according to the latest update from the Ministry of Economy, Trade & Industry. 

Sales decreased for apparel and personal goods by 11.6%, fuel by 10.8%, non-store retailers by 5.8%, and department stores by 0.5%. 

However, sales advanced for automobiles by 5.9%, machinery and equipment by 5.9%, and cosmetics by 0.1%. 

Japan's unemployment rate held steady for the fifth month in a row in December, indicating tight labor market conditions. 

The jobless rate was unchanged at 2.6% as more female and elderly workers sought jobs in the expanding labor force, according to the Ministry of Internal Affairs & Communications. 

Japan's 2025 jobless rate was unchanged at 2.5% from the previous year, as higher inflation drove more people to look for jobs as the number of people with jobs increased.

Increasingly, Japan's businesses are restraining hiring due to minimum wage increase and rising materials costs. 

The number of employed people increased by 470,000 to 68.3 million, and the labor force expanded by the same amount to 70 million. 

The labor force includes those employed and those seeking jobs over the age of 15 years. 

Flexible working hours and rising wages are also drawing more elderly and young workers to the labor market, but rising living costs are also increasing job seekers. 

A separate report from the agency showed that the job availability ratio edged up 0.01 to 1.19, according to the labor ministry. 

The ratio declined 0.03 point from a year ago to 1.22 in 2025, weakening for the second consecutive year, according to the Ministry of Health, Labor, and Welfare. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.2%, and the broader Topix Index added 0.3% to 3,555.10.

Hitachi Ltd. jumped 3.8% to ¥5,271.0, and Fujikura Ltd. added 0.2% after the release of their financial results. 

Sumitomo Metal Mining declined 3.9% to ¥9,469.0 amid a weakness in the metals market, and the company is scheduled to release its financial results next week. 

Kioxia Holdings Corp. soared 10.5% to a new record high of ¥21,310.0 ahead of the digital storage company's quarterly results on February 12.