Japan Markets
Japan Markets Highlights — Jul 2, 2026 | Aivina
July 2, 2026
Japanese markets displayed mixed sentiment as the Nikkei 225 faced profit-taking but recovered some ground. The yen continued its weakening trend past 157.50 against the dollar, intensifying intervention warnings. BOJ officials reiterated their readiness to adjust policy, closely watching sustained inflation and wage growth data for future rate hike decisions.
Highlights
- Nikkei 225 experienced early week dip; profit-taking weighed on stocks; recovered some losses by Friday.
- Yen weakened past 157.50; intervention warnings escalated; remained near multi-decade lows.
- BOJ officials maintained cautious stance; hinted at future policy adjustments; closely monitoring inflation data.
Macro Overview
Inflation
Tokyo core CPI for May eased to 1.9%, below expectations, while national CPI for April remained above the 2% target.
Interest Rate Outlook
BOJ is expected to consider further rate hikes later this year, likely July or September, depending on economic data.
Risk Sentiment
neutral
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