Japan's Producer Price Inflation Accelerated to a 3-Year High, Tech Stocks Plunged 8%

Akira Ito
15 May, 2026
Tokyo

Japan's indexes closed sharply lower and extended weekly losses as investors monitored developments in the Middle East. 

The Nikkei 225 Stock Average dropped 2%, the broader TOPIX decreased 0.4%, and the yen weakened to 158.44 against the U.S. dollar. 

Market sentiment worsened in Friday's trading as investors reviewed the latest wholesale inflation update and monitored the Trump-Xi summit in Beijing. 

Japan's producer price index accelerated in April as the global oil supply shock rippled through the economy. 

The producer price index accelerated to an annual increase of 4.9% in April from the upwardly revised 2.8% in the previous month, according to the Bank of Japan in its monthly update.

The measure of wholesale inflation advanced at the fastest pace since May 2023 amid intensifying cost pressures following a spike in energy prices linked to the supply chain disruptions from the war in Iran. 

On a monthly basis, the producer price index increased 2.3%, faster than 1.0% in March and the fastest increase since April 2014. 

The sharp jump in wholesale prices is likely to make its way to consumers over the next few months, which is expected to push policymakers to raise interest rates sooner rather than later.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 2% to 61,409.29, and the broader Topix fell 0.4% to 3,863.97. 

Tech stocks faced heavy selling pressure amid worries of the Bank of Japan's policymakers lifting rates faster than previously estimated. 

Kioxa Holdings declined 8%, Fujikura Ltd. dropped 9%, SoftBank Group fell 0.5%, Furukawa Electric decreased 4.9%, and Advantest Corp. eased 7.9%.