Japan Markets

Japan Markets Highlights — Jul 25, 2026 | Aivina

July 25, 2026

The Nikkei 225 experienced mixed movements this week, with gains in chip-related stocks offset by profit-taking. The Bank of Japan's April meeting minutes revealed active debate among members regarding future interest rate hikes, signaling a readiness for policy adjustments. Meanwhile, the Japanese Yen exhibited some strengthening against the USD, though volatility and intervention concerns remain. Japan's inflation figures show core CPI near the 2% target, supporting a neutral risk sentiment as the BOJ considers its next steps.

Highlights

Macro Overview

Inflation

Tokyo core CPI for May eased to 1.9% YoY, while national core CPI for April stood at 2.2% YoY, remaining near the BOJ's target.

Interest Rate Outlook

BOJ minutes confirmed a readiness for gradual rate hikes; future moves are data-dependent; market anticipates further normalization.

Risk Sentiment

neutral

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