Japan Markets Highlights — Jul 24, 2026 | Aivina
July 24, 2026
Japanese markets saw the Nikkei consolidate after recent peaks, while the JPY continued its weakening trend, hitting multi-decade lows against the USD. The Bank of Japan reiterated its commitment to an accommodative monetary policy, despite inflation remaining above its target. The outlook remains cautious, with future rate adjustments dependent on sustained wage growth and inflation trends.
Highlights
- Nikkei 225 experienced consolidation, following recent record highs, as investors took profits.
- Japanese Yen continued weakening, pressured by persistent yield differentials, reaching multi-decade lows.
- BOJ officials maintained dovish stance, emphasizing data dependency, despite currency depreciation concerns.
Macro Overview
Inflation
Japan's core CPI remains above 2%, showing some stickiness, but the annual pace slightly moderated, indicating persistent price pressures.
Interest Rate Outlook
BOJ is expected to hold rates, considering future gradual hikes, contingent on sustained wage growth and inflation reaching its target.
Risk Sentiment
neutral
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