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Japan Shares Close Higher as Investors Eye US Jobs Data, Tax Bill
Thursday, 3 July 2025 13:56 WIB | NIKKEI |Nikkei 225Saham Jepang

Japanese shares ended higher on Thursday as investors awaited a key US jobs report and the outcome of a major tax and spending bill in Congress, both seen as potential triggers for Fed rate cuts.

The Nikkei 225 rose 0.06%, or 23.42 points, to end at 39,785.90.

Investors awaited a House vote in the US on Trump's $3.3 trillion tax and spending bill, which would cut taxes, reduce social programs, and raise the national debt.

The focus also remained on US payrolls data due later in the day, with forecasts calling for a 110,000 job gain and unemployment rising to 4.3%.

A surprise drop in private sector jobs has heightened market sensitivity to the report. Still, Fed officials cite labor market strength as a reason to delay rate cuts, with futures pricing in just a 25% chance of a July move.

In economic data, Japan's services sector grew for a third month in June, with the PMI rising to 51.7 from 51.0, supported by stronger demand and hiring, S&P Global said Thursday.

Business confidence hit a four-month high, while input cost inflation eased slightly. Output prices rose at the fastest pace in 14 months.

The Composite PMI rose to 51.5, the highest since February, as services and factory output improved.

Source: MTN newswires

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