Tokyo Stocks Extended Weekly Gains, Japan's PPI Surged to Over 3-Year High In June

Akira Ito
10 Jul, 2026
Tokyo

Japan's indexes rebounded on Friday and trimmed weekly losses, driven by buoyant investor sentiment towards technology- and semiconductor-related stocks. 

The Nikkei 225 Stock Average gained nearly 2%, the broader TOPIX advanced 0.8%, and the yen strengthened to 161.63 against the U.S. dollar.  

The easing of crude oil prices also supported the market rally, helping curb inflation concerns and lowering pressure on Japan's energy import-dependent economy. 

The yield on Japan's benchmark 10-year government bond edged lower to 2.79%, after briefly surpassing 2.9%  

 

Japan's Producer Price Inflation Accelerated to 3-Year High In June

However, Japan's producer prices accelerated to their fastest pace in more than three years, confirming persistent cost pressures linked to the Middle East conflict and disruptions of supply chains in the Strait of Hormuz. 

Japan's producer price inflation accelerated to an annual pace of 7.1% in June from the upwardly revised 6.6% in the previous month, according to the Bank of Japan. 

The wholesale inflation measure rose at the fastest pace since March 2023, driven by persistent higher fuel prices linked to the conflict in the Middle East and lingering supply chain disruptions. 

The persistent increase in oil and derivative products is seeping into wider sectors of the economy as the imported-oil-dependent Japan scrambles to seek alternative sources amid higher shipping costs. 

The price increases initially visible among products directly linked to crude oil are starting to spread to consumer goods, a Bank of Japan official said. 

Inflation for petroleum and coal accelerated to 22.8% from 13.7%, chemicals advanced to 14.4% from 14.3%, and information and communications advanced to 14.5% from 13.7% in the previous month, respectively. 

Overall, import prices jumped 29.7% from a year ago, the largest pace of annual increase since the gain of 42.3% in October 2022, supported by a weaker yen.  

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average gained 1.9% to 69,056.76, and the broader TOPIX advanced 0.8% to 4,051.27. 

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

Kioxia Holdings jumped 2.1% to ¥79,510.0, Murata Manufacturing advanced 4% to ¥9,848.0, Tokyo Electron added 3.1% to ¥73,250.0, and Advantest Corp. increased 3.2% to ¥30,120.0.