The Japanese stock market is trading notably lower on Monday with a rather disappointing U.S. jobs data raising concerns about the pace of economic recovery and weighing on sentiment to a notable extent. A stronger yen is also contributing to the weakness.
Pharmaceuticals, precision instruments, mining and warehousing stocks are mostly down in negative territory. Financial, rubber products and pulp & paper stocks are exhibiting a mixed trend.
The benchmark Nikkei 225 index is currently down 107.1 points or 1.1% at 9,535.
Pioneer Corp., the biggest loser among Nikkei 225 stocks, is down nearly 7%. Sumitomo Metal Mining, Mitsui Engineering, Suzuki Motor, Sumco Corp., Advantest, Hino Motors, Japan Tobacco and Nippon Yusen are down 2%-4.5%.
Showa Shell, TDK Corp., Nippon Suisan, Yamato Holdings, Fujifilm Holdings, GS Yuasa, Toshiba Corp., NTT Data and Mitsubishi Estate are also down with notable losses.
Among the gainers, Ebara Corp. and Tokai Carbon are up 8% and 7% respectively. Nippon Sheet Glass, Credit Saison, Shinsei Bank, Clarion, All Nippon Airways, UBE Industries, Mitsubishi Paper, Nippon Light Metals, Bridgestone Corp., Yahoo Japan Corp., Central Japan Railway and Bank of Yokohama are also trading firm.
On the economic front, Japan posted a current account balance of 1.047 trillion yen in June, the Ministry of Finance said on Monday. That was below analyst expectations for a surplus of 1.311 trillion yen following the 1.205 trillion yen total in May. The adjusted current account total was 1.362 trillion yen - again below forecasts for a surplus of 1.447 trillion yen following the 904.8 billion yen surplus in the previous month.
Japan saw a trade balance of 769.0 billion yen, up 26.6% on year. Imports totaled 4.794 trillion yen, up an annual 29.6%, while exports came in at 5.563 trillion yen, up 29.2% on year.
According to a report from the Bank of Japan, bank lending in Japan declined 1.9% on year in July to 394.97 trillion yen, following a 2.1% annual contraction in June. Including trusts, bank lending was off 1.8% on year after shedding an annual 2% in the previous month, coming in at 457.60 trillion yen. Adjusted bank lending was down 1.7% on year after falling an annual 1.9% a month earlier. Lending from foreign banks saw an annual decline of 16.9% to 4.0 trillion yen.
The central bank said Japan's M2 money stock plus CDs was up 2.7% on year in July to 778.7 trillion yen. That was slightly below forecasts for a 2.9% increase that was the same rate of increase as in June, when M2 was 778.3 trillion yen. M3 money stock gained 2% on year to 1,079.5 trillion yen versus expectations for a 2.2% gain. M3 also rose 2.2% on year in the previous month.
In the currency market, the U.S. dollar traded in the lower 85 yen level in early deals in Tokyo. The yen is currently trading at 85.38 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, New Zealand, South Korea and Taiwan are trading in positive territory, while Shanghai, Malaysia and Singapore are trading weak. Markets across the region had ended on a mixed note on Friday.
On Wall Street, stocks ended modestly lower on Friday, recovering from substantial losses seen earlier in the session, as traders focused on the private sector job creation in the day's otherwise disappointing jobs report.
The major averages all saw some upside in late-session dealing but were unable to break into positive territory. The Dow edged down 21.4 points or 0.2% to 10,653.6, the Nasdaq slid by 4.6 points or 0.2% to 2,288.5 and the S&P 500 declined by 4.2 points or 0.4% to 1,121.6.
Major European markets all ended on the downside on Friday. The French CAC 40 index and the German DAX index lost 1.3% and 1.2% respectively, while the U.K.'s FTSE 100 index slipped by 0.6%.
Oil prices drifted lower on Friday as traders reacted to the weaker-than-expected U.S. jobs report. Light, sweet crude for September delivery fell US$1.31 to settle at US$80.70 a barrel on the New York Mercantile Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.