2025.08.2201:14:53UTC+00Japanese Stocks Mixed as Inflation Beats Forecasts

The Nikkei 225 dipped marginally by 0.1%, falling below the 42,600 mark on Friday, while the Topix index rose by 0.4% to reach 3,095. This lack of clear direction in Japanese equities comes as investors processed new inflation figures. The core Consumer Price Index (CPI) increased by 3.1% in July 2025 compared to the same month last year. Although this is a slight drop from June's 3.3%, it surpassed the anticipated 3% mark. This figure significantly exceeds the Bank of Japan's target of 2%, intensifying speculation about a potential interest rate hike before the end of the year. The sentiment was also affected by Wall Street's overnight downturn, prompted by unsatisfactory US retail earnings. On the corporate front, SoftBank Group, Sanrio, and Lasertec experienced gains of 1%, 1.1%, and 3% respectively, whereas Advantest, Shin-Etsu Chemical, and Keyence saw declines of 0.4%, 2.2%, and 1.6%. Over the course of the week, forecasts suggest that the Nikkei and Topix indexes are likely to record losses of 1.8% and 0.3%, respectively.