Higher Energy Prices Supported Higher Inflation In

Akira Ito
24 Apr, 2026
Tokyo

Japan's indexes recovered some of the losses of the previous session and extended gains for the fourth week in a row. 

The Nikkei 225 Stock Average advanced 1%, and the broader Topix inched higher 0.2% amid growing realization that the conflict in the Persian Gulf is likely to stretch into next year. 

Japan's annual inflation accelerated to 1.5% in March from a four-year low of 1.3% in February, according to the Ministry of Communication and International Affairs.

Surging crude oil prices amid Middle East conflict contributed to a nationwide core inflation, which excludes fresh food prices, accelerated to 1.8% from 1.6% in February.

Core-core inflation, which strips away fresh food and energy prices to highlight underlying price trends, slowed to an annual increase of 2.4% from 2.5% in the previous month.

For the fiscal year ending in March, core inflation was 2.7%, largely driven by a 48.9% rise in rice prices. 

The end of the gasoline tax at the end of 2025 led to a slowdown in overall consumer price inflation in January and February, but the renewed tensions in the Middle East reignited inflationary forces. 

For now, rising fuel prices are partially offset by government subsidies, and the government has offered aid to wholesalers to keep gasoline prices at 170 yen per liter, lower than the price of 190.80 yen per liter on March 19. 

Japan imports about 95% of its crude oil from the Middle East.

 

Japan Indexes and Stocks

The Nikkei 225 Stock Average increased 1% to 59,757.39, and the broader Topix advanced 0.2% to 3,723.99.

Technology stocks led gainers in Friday's trading in Tokyo. 

Tokyo Electron, Advantest Corp., Lasertec, and Disco Corp. advanced between 1% and 3%. 

Nippon Yusen, Kawasaki Kisen Kaisha, and Mitsui OSK Lines rose between 1% and 3%.