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As on : 01-Oct-2025

Market Commentary - Foreign Markets
01-Oct-2025 15:29

Japanese shares end sharply lower as yen gains

Asian stocks ended mixed in thin trade on Wednesday, with mainland Chinese and Hong Kong markets closed for the National Day holiday.

The United States has entered a federal government shutdown, the first in nearly seven years, after a stopgap funding bill failed.

The shutdown could delay crucial economic reports, including Friday's nonfarm payrolls data, which are vital for the Federal Reserve's interest-rate decisions.

Japanese markets ended sharply lower as the yen extended gains for a fourth straight session, pressured by the U.S. government shutdown and anxiety ahead of the leadership election for the ruling Liberal Democratic Party.

Sentiment was also dented by a survey that showed Japan's manufacturing activity shrank at the fastest pace in six months in September.

On the contrary, a central bank survey revealed that sentiment among Japan's large manufacturers improved for a second straight quarter.

The Nikkei average fell 0.85 percent to 44,850.85 while the broader Topix index settled 1.37 percent lower at 3,094.74.

Financial stocks paced the declines, with Dai-ichi Life Holdings and Mizuho Financial Group both tumbling around 4 percent.

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