The Tokyo Stock Exchange marked the first trading day of 2025 with a ceremony on Monday. But the year got off to a lackluster start.

About 100 people took part in the ceremony. Japan Exchange Group CEO Yamaji Hiromi said in a speech that fund flows from savings into investments are finally picking up. It's been a year since the NISA tax-free investment program was expanded.

Yamaji said this is the year of the snake under the Chinese zodiac: "I hope the market will shed its skin and expand, just as snakes do as they become larger."

Japanese Financial Services Minister Kato Katsunobu said: "Japan's economy is seeing signs of a recovery. We aim to take this opportunity to fully end deflation. And we want to ensure a transition to a growth-oriented economy, driven by rising wages and investments."

The benchmark Nikkei 225 index finished the day at 39,307, down 587 points or 1.47 percent. Many investors sold throughout the session to lock in profits.

An analyst said: "Market players seemed hesitant amid concerns about the trade policies of incoming US President Donald Trump and the slowdown in China's economy."