Japanese stocks closed lower on Thursday (January 8) after the latest data showed real wages fell in November 2025 at the fastest pace since January, mainly due to a drop in one-time bonus payments. Market sentiment was also depressed as the weakening wages emphasized household challenges amid persistently high price pressures.

The Nikkei 225 Index fell 1.6%, or 844.72 points, to 51,117.26. This wage data shows that inflation continues to outpace income growth, adding to the complexity for the Bank of Japan, which plans to continue policy normalization and open up room for interest rate hikes this year.

According to data from the Ministry of Labor, inflation-adjusted real wages fell 2.8% annually in November 2025—equivalent to the decline in January and the worst reading since September 2023. This decline confirms that purchasing power is still being eroded, even though nominal incomes have not completely collapsed.

Meanwhile, consumption indicators also weakened. The consumer confidence index fell to 37.2 in December from 37.5 in November, reflecting a more cautious outlook on livelihoods, employment, and durable goods purchasing plans, although expectations for income growth improved slightly.

In the corporate sector, Shin-Etsu Chemical closed down 4% after announcing plans to launch laser-based technology to simplify back-end chip manufacturing, with trial shipments targeted for 2027. Meanwhile, GNI Group rose 3.4% after its unit, Cullgen, announced that its non-opioid pain reliever candidate CG001419 is projected to enter Phase 2 clinical trials in the second quarter of 2026, while also advancing its new inflammatory disease program toward the study stage that supports an IND application. (Arl)

Source: Newsmaker.id