Japan Stocks Fall On Tech Losses, Tokyo Inflation Stays Below BoJ's Target Rate

Akira Ito
26 Jun, 2026
Tokyo

Japan's indexes erased gains from the previous session on Friday, and benchmark indexes closed down for a week amid rising concerns over the sustainability of the elevated level of AI infrastructure spending. 

The Nikkei 225 Stock Average decreased 4.3%, the broader TOPIX declined 1.6%, and the Japanese yen traded at 161.56 against the U.S. dollar. 

For the week, the Nikkei 225 stock average declined 3.6%, and the broader TOPIX fell 2.6%. 

The yen continued to hover near a four-decade low, supporting the case for an intervention from the ministry of finance and the Bank of Japan as policymakers struggle to contain the fall of the currency despite higher interest rates. 

Brent crude oil prices decreased 1.9% to $74.13 a barrel amid improving shipping activity through the Strait of Hormuz and easing supply conditions for the import-dependent Japan. 

 

Tokyo-Area Core Inflation Accelerated to 3-Month High In June

Tokyo-area's core and overall annual inflation accelerated in June from May amid broadening price pressures since the start of the Middle East conflict. 

Investors closely watch the Tokyo area's inflation, as the measure of price change is deemed a reliable signal for price trends in the broader economy of Japan.

Overall inflation increased to 1.7% from 1.4% in May, and core inflation, which excludes energy prices, advanced to an annual rate of 1.6% from 1.3% in the previous month, according to a report released by the Statistics Bureau of Japan. 

However, core inflation remained below the central bank's 2% target rate for the fifth consecutive month and overall inflation for the sixth consecutive month. 

Favorable base effects and energy subsidies kept in check the impact of higher raw material costs linked to the Middle East conflict. 

The core-core rate of inflation, which excludes food and energy prices, accelerated to 1.9% in June from May, confirming rising inflationary pressures in the broader economy. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 4.5% to 69,093.82, and the broader TOPIX dropped 1.4% to 69,093.82. 

AI- and semiconductor-linked stocks led decliners in Friday's trading in Tokyo, reversing the previous session's sharp gains, driven by a surge in memory-related stocks. 

SoftBank Group dropped 13% to ¥6,186.0, Kioxia Holdings declined 11.6% to ¥91,710.0, and Taiyo Yuden decreased 12.9% to ¥16,375.0, and Furukawa Electric eased 8.5% to ¥45,520.0.