Japan FRIDAY

Akira Ito
22 Aug, 2025
Tokyo

Stock market indexes in Tokyo lacked direction on Friday, and investors reviewed the latest inflation update.

The Nikkei 225 Stock Average edged down a fraction and struggled to stay above the flatline, and the broader Topix gained 0.4%. 

For the week, the Nikkei 225 Stock Average decreased 2.4% to 3,096.60, and the Topix fell 0.8%.

 

Japan's Inflation Sayed Above BoJ Target Rate In July

Market sentiment turned cautious after overall inflation and the core inflation rate slowed to 3.1% in July but stayed well above the Bank of Japan's target rate of 2%. 

Overall inflation eased to 3.1% from 3.3% in June, after electricity prices fell 0.7% compared to an increase of 5.5%, and gas prices were unchanged after rising 2.7% in the previous month, respectively. 

Food price inflation accelerated to 7.6% from 7.2% in the previous month, driven by a 90.7% increase in rice prices despite the government's release of rice from emergency stockpiles. 

The headline inflation declined for the fifth month in a row, largely because of the decline in energy prices and weaker services inflation.

The core rate of inflation, which excludes food prices, eased to 3.1% from 3.3% in June and fell to a five-month low, the Ministry of Internal Affairs and Communications said. 

 Core-core rate of inflation, which excludes food and energy prices, increased 3.4% in July, according to the ministry.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.1% to 42,556.85, and the broader Topix added 0.4% to 3,096.60. 

Semiconductor equipment makers lacked direction, following another day of decline in tech stocks in overnight trading on Wall Street.

Tokyo Electron decreased 1.6% to ¥20,095.0, Advantest Corp. fell 1.6% to ¥10,765.0, and Disco Corp. edged up 0.1% to ¥38,640.0.

Vehicle makers were under pressure after the European Union and the U.S. released details of tariffs under the trade framework agreed upon a few weeks ago in Scotland. 

Vehicles shipped to the U.S. from the European Union will continue to face a higher import duty of 25% until the EU introduces legislation to eliminate all duties on U.S. industrial products. 

The joint EU-US announcement said the tariffs will drop to 15% after the European Union leaders introduce legislation to remove import duties on industrial products and give wider access to US agriculture products. 

Toyota Motor Corp. gained 1.4% to ¥2,943.0, Honda Motor Corp. advanced 0.6% to ¥1,679.0, and Nissan Motor Corp. decreased 0.4% to ¥351.90.