Japan Markets Highlights — Jul 29, 2026 | Aivina
July 29, 2026
The Nikkei 225 saw mixed performance recently, generally trending lower amid global tech concerns. The Japanese Yen continued its weakening trajectory against the USD, pushing past 157, keeping intervention watch high. BOJ officials reiterated commitment to gradual policy normalization, hinting at potential future bond purchase reductions and rate hikes despite a recent dip in Tokyo core CPI below 2%.
Highlights
- Nikkei 225 experienced mixed trading; ended lower on US tech concerns; overall showing slight weakness.
- Japanese Yen continued weakening; moved past 157 against USD; intervention speculation remains high.
- BOJ officials reiterated normalization; Deputy Governor suggested bond purchase reduction; hinting at future tightening.
Macro Overview
Inflation
Tokyo core CPI for May eased to 1.9%, falling below 2% and analyst expectations, suggesting some moderation in price pressures. National core CPI for April was 2.5%.
Interest Rate Outlook
BOJ officials maintain a gradual normalization stance, with potential for further rate hikes later this year, contingent on sustained inflation.
Risk Sentiment
neutral
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