Japan's Producer Price Inflation Moderated In December, Tech Stock Led Tokyo Downturn

Akira Ito
15 Jan, 2026
Tokyo

Japan's benchmark indexes diverged, and the yen's persistent decline raised fears of intervention. 

The Nikkei 225 Stock Average decreased 0.8%, the broader Topix Index edged up 0.8%, and the Japanese yen weakened to 158.51 against the U.S. dollar.

Stocks in Tokyo declined following losses in overnight trading in New York, driven by another down day in technology stocks amid worries of additional U.S. export controls for advanced chips.  

Moreover, the U.S. Supreme Court is set to deliver its judgment on the legality of the global tariffs imposed by the Trump administration. 

If the high court rules the sky-high tariffs on imported goods illegal, the Trump administration may have to look for ways to refund payments to customers and importers. 

The Supreme Court has signaled that the decision will be announced as early as this week, which could contribute to market volatility. 

For now, Japan's market indexes traded at fresh new highs amid expectations that Prime Minister Sanae Takaichi is likely to announce a snap parliamentary election next month.  

On the economic front, Japan's producer prices rose at a slower pace of 2.4% from a year ago in December, according to an estimate released by the Bank of Japan. 

The measure of wholesale inflation eased from 2.7% in the previous month and dropped to the slowest increase since May 2024. 

The inflation moderation was driven by a decline in prices of chemicals, steel, and petroleum and coal products, and a slower pace of increase in prices of transportation equipment, machinery, and food and beverages. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.8% to 53,909.90, and the broader Topix Index advanced 0.8% to 3,673.43. 

Softbank Group declined 5% to ¥4,045.0, Tokyo Electron fell 2.9% to ¥41,050.0, and Advantest Corp. decreased 4.4% to ¥22,055.0. 

Nippon Yusen KK decreased 0.1% to ¥5,372.0, Mitsui O.S.K. Lines dropped 0.1% to ¥4,972.0, and Kawasaki Kisen Kaisha added 0.4% to ¥2,327.50.