Japan's Q3 GDP contraction worsens on weak capex; unlikely to sway BOJ on rate hike

The yield on Japan's 10-year government bonds declined following disappointing gross domestic product (GDP) data, which indicated a contraction in the economy. This decline reflects investor concerns about economic stability as Japan's GDP contracted by 1.8% in the third quarter of 2025, exacerbated by weak capital expenditure.

Japan's economy contracted by 2.3% on an annualized basis in the third quarter, a deeper decline than the previously estimated 1.8%. This revision highlights ongoing economic challenges, particularly in capital expenditure, which has raised concerns about the country's economic stability.

Japan's economy has been revised to show a deeper contraction of 1.8% in the third quarter of 2025, primarily due to weak capital spending. This downturn raises concerns about the overall economic stability of the country, as capital expenditure is a critical component of economic growth.

Japan continues to struggle with the underrepresentation of women in leadership roles, highlighting a significant gap in gender equality within the business sector. Despite various initiatives aimed at increasing female participation in corporate leadership, progress remains slow and insufficient to meet targets set by the government.

Japan's real wages fell for the tenth consecutive month in October, despite an increase in nominal pay, indicating a troubling trend for workers as inflation continues to outpace wage growth.