Japan Markets

Japan Markets Highlights — Aug 13, 2026 | Aivina

August 13, 2026

Japanese markets saw volatility, with the Nikkei 225 experiencing a sharp decline followed by a partial recovery. The yen continued its depreciation trend against the dollar, prompting renewed verbal intervention warnings from officials. The Bank of Japan maintained its accommodative monetary policy stance, reiterating a data-dependent approach amidst mixed economic signals, including moderating inflation and a revised Q1 GDP contraction.

Highlights

Macro Overview

Inflation

Tokyo CPI for May eased slightly to 2.2%, with core-core (excluding fresh food and energy) at 1.7%, showing some moderation.

Interest Rate Outlook

BOJ is expected to keep rates steady in June, with potential for a hike later in the year, depending on wage growth.

Risk Sentiment

neutral

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