FX.co ★ Japanese Shares Climb After Mixed Inflation Data

The Nikkei 225 experienced a modest rise of 0.4%, surpassing 38,600 on Friday, as the market recovered some of its losses from the previous day. This movement came as investors analyzed Japan's most recent inflation data. In May, headline inflation slightly decreased to 3.5%, down from 3.6% in the prior two months, representing the lowest rate since November 2024. Conversely, core inflation—which excludes fresh food yet includes energy—climbed for the third month in a row, reaching 3.7%, its highest point since January 2023. This trend underscores the anticipation that the Bank of Japan will persist in tightening its monetary policy to address enduring inflationary pressures. On the global stage, geopolitical tensions continued to contribute to overall cautious market sentiment, amid reports that US President Donald Trump is contemplating a military strike on Iran. Notwithstanding these concerns, the technology sector showed resilience, driven by significant gains from companies like Advantest (+4.4%), Disco (+2.6%), Lasertec (+2.7%), SoftBank Group (+1.3%), and Socionext (+4.6%).