FX.co ★ Japanese Shares End Mixed on Weak Data

On Tuesday, the Nikkei 225 experienced a decline of 0.25%, settling at 44,933, whereas the Topix index registered a modest gain of 0.19%, closing at 3,138. This divergence in Japanese equities was largely attributed to the impact of unfavorable economic data. Retail sales witnessed a decrease of 1.1% in August, defying expectations of a 1% increase and signaling the first downturn since February 2022. Additionally, industrial production fell more sharply than anticipated, underscoring continued economic challenges. The Bank of Japan’s September Summary of Opinions indicated a division among policymakers, with some advocating for further interest rate hikes should growth and inflation forecasts be achieved, while others preferred maintaining low rates to mitigate the economy against US tariff influences. The technology sector notably underperformed, with significant declines from companies such as Advantest (-3.3%), SoftBank Group (-1.9%), and Tokyo Electron (-0.6%).