Japan’s Nikkei Stock Average Gains, Led by Department Stores on Sales Reports (UPDATE 1)

Reuters

12:20 JST, September 2, 2025 (updated at 16:30JST)

TOKYO, Sept 2 (Reuters) – Japan’s Nikkei share gauge edged higher on Tuesday, snapping a two-day skid, as anticipation of rate cuts from the Federal Reserve and positive sales reports by department stores buoyed sentiment.

The Nikkei 225 Index .N225 struggled for direction, losing as much as 0.25% at one point, but ended the day up 0.3% to 42,310.49. The broader Topix .TOPX added 0.6%.

Trading was subdued after a market holiday in the United States for Labour Day diminished trading cues. Ahead of key U.S. jobs data on Friday, markets are showing an 89% chance the Fed will reduce rates by 25 basis points (bp) at its next meeting.

‏”Japanese equities are finding some modest support, partially because the market is pricing in a 25 bp Fed rate cut in September, which is broadly positive for risk assets,” said Dilin Wu, a research strategist at Pepperstone. “However, elevated Japanese government bond yields and spillover pressure from U.S. tech stock sell-offs are keeping buyers cautious.”

Takashimaya 8233.T and a unit of J.Front Retailing 3086.T posted preliminary same-store sales figures for August on Monday that showed the first year-on-year rise since February.

Takashimaya shares gained 3.3%, while J.Front advanced 4.3%. Isetan Mitsukoshi 3099.T, which narrowed its monthly sales decline, surged 5.9%.

There were 166 advancers on the Nikkei index against 58 decliners.

After Isetan Mitsukoshi, the biggest gainer on the Nikkei was beermaker Kirin Holdings 2503.T, which rose 5.4%.

The largest losers on the index were online retailer Mercari 4385.T, which lost 4.8%, followed by Furukawa Electric 5801.T, which slid 3.4%.