Japan’s Economy Shrinks at Faster Pace Than Initially Estimated

Japan's economy contracted by 1.8% in the third quarter of 2025, exacerbated by weak capital expenditure, which raises concerns about the country's economic stability. This contraction is seen as unlikely to influence the Bank of Japan's (BOJ) stance on interest rate hikes.

U.S. households are concluding the year with a more negative outlook on the economy compared to the beginning, despite maintaining their spending levels. This sentiment reflects a significant decline in consumer confidence, nearing record lows as reported by The Wall Street Journal.

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 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.

The latest Market Talks from The Wall Street Journal provide insights into major players in the technology, media, and telecom sectors, including Netflix and Shopify. These discussions reflect current market dynamics and investor sentiment, highlighting the evolving landscape of these industries.

This week, rate-sensitive stocks, particularly in the airline and trucking sectors, experienced significant gains as investors anticipate potential interest rate cuts by the Federal Reserve. This optimism has driven stock prices closer to record highs, reflecting a positive sentiment in the markets.