FX.co ★ Japanese Stocks Edge Higher After Inflation Data

On Friday, the Nikkei 225 edged up by 0.05% to settle at 42,633, while the more comprehensive Topix Index advanced 0.58% to 3,101, breaking a three-day losing streak. This gain came as investors processed new inflation data. Japan’s core Consumer Price Index (CPI) climbed by 3.1% in July 2025, year-on-year, a slight decrease from June's 3.3%, yet it still exceeded market forecasts of 3%. This inflation rate remains significantly above the Bank of Japan’s target of 2%, bolstering expectations for a rate increase later in the year. Investor sentiment was also influenced by anticipation of US Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole, as investors remained cautious about potential delays in easing monetary policy. Among notable stocks, Sanrio increased by 1.6%, SoftBank Group went up by 2%, Lasertec rose by 2.5%, Tokyo Electric Power advanced by 1.8%, and Mitsubishi UFJ gained 1.6%. Despite these gains, both indices closed the week in the red, with the Nikkei down by 1.72% and the Topix decreasing by 0.22%.