Japan Markets Highlights — Aug 29, 2026 | Aivina
August 29, 2026
The Japanese yen continued its depreciation, touching multi-decade lows against the USD, largely due to persistent interest rate differentials and the Bank of Japan's cautious monetary policy. The Nikkei 225 exhibited mixed performance, reflecting global market volatility and domestic economic signals. The BOJ reiterated its data-dependent approach to future rate adjustments, maintaining a dovish stance despite inflation exceeding its 2% target.
Highlights
- JPY weakened significantly; touched multi-decade lows; against the US dollar.
- Nikkei 225 index; showed mixed performance; amid global volatility.
- BOJ maintained dovish stance; emphasized data dependency; for future policy adjustments.
Macro Overview
Inflation
Tokyo core CPI decelerated to 1.9%; national CPI remains above 2%; wage growth key for BOJ.
Interest Rate Outlook
BOJ maintains cautious stance, emphasizing data dependency for future hikes; market expects gradual normalization rather than aggressive moves.
Risk Sentiment
neutral
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