Japan Markets Highlights — Jun 25, 2026 | Aivina
June 25, 2026
The Nikkei 225 recently declined due to profit-taking, especially in technology, before a modest rebound. The Japanese Yen significantly strengthened against the dollar following the BOJ's bond tapering announcement, fueling expectations of future rate hikes. While the BOJ maintained its policy rate in June, markets anticipate further tightening in July or September, as May's core CPI at 2.5% reinforces inflation concerns.
Highlights
- Nikkei 225 declined; Profit-taking observed; Technology stocks pressured.
- JPY strengthened significantly; Intervention fears persist; BOJ policy impact felt.
- BOJ held rates steady; Bond tapering details awaited; Market eyes July for action.
Macro Overview
Inflation
May Core CPI rose 2.5% year-on-year, exceeding the BOJ target, primarily driven by sticky services inflation.
Interest Rate Outlook
BOJ held rates, but market anticipates a July or September hike, signaling gradual policy normalization.
Risk Sentiment
neutral
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