Japan's Jobless Rate Eased In July, Tokyo's Core Inflation Accelerated Third Consecutive Month In August

Akira Ito
28 Aug, 2026
Tokyo

Japan's indexes edged higher, powered by a rally in technology stocks, as investors reviewed the latest economic data. 

The Nikkei 225 Stock Average edged up 0.7%, the broader TOPIX advanced 1%, and the yen hovered at 159.35 against the U.S. dollar. 

AI- and semiconductor-linked stocks advanced after Nvidia's strong quarterly results and forecasts. 

Japanese technology companies are key beneficiaries of the global boom in artificial intelligence infrastructure, and Nvidia's strong guidance eased worries of stretched valuations.   

 

Japan's Jobless Rate Edged Lower In July

Japan's jobless rate inched slightly lower to 2.4% in July after holding steady at 2.5% in the previous three months in a row, said the Ministry of Internal Affairs & Communications. 

The jobless rate dropped to the lowest level since July 2025, and the number of unemployed fell by 80,000 to a one-year low of 1.67 million, while employment declined by 150,000 to a four-month low of 68.3 million. 

Japan's labor force shrank by 240,000 to an 11-month low of 70.0 million, meanwhile the number of people not engaged in labor-related activities rose by 30,000 to 39.4 million. 

The participation rate in the labor force eased to 64.1% from 64.4% in June but is higher than the 63.9% recorded one year ago. 

Separately, Japan's jobs-to-applicants ratio held steady at 1.18, unchanged from the previous month as businesses linked to tourism and semiconductor industry continued to hire, according to separate data from the Ministry of Health, Labor and Welfare.

Of the 11 sectors, five sectors, including manufacturing service industries, recorded more job openings, and six booked declines, including wholesale and retail trade and accommodations. 

 

Tokyo Core Inflation Edged Up In August as Price Pressure Broadened

Core consumer prices in Tokyo's central wards edged slightly higher to 1.8% in August from 1.7% in July, said the Statistics Bureau of Japan. 

Inflation accelerated for the third consecutive month, and advanced at the fastest pace since March, confirming broadening price pressures linked to the Middle East conflict.    

However, inflation stayed below the Bank of Japan's target rate of 2% for the seventh month in a row, as fuel subsidies and favorable base effects mitigated the impact of higher raw materials costs linked to the Middle East conflict. 

Meanwhile, core-core inflation edged up 2.0% from the downwardly revised 1.8% in July, marking the highest reading in five months. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.7% to 66,601.47, and the broader TOPIX advanced 1% to 4,157.59. 

Advantest Corp. rose 1.7% to ¥35,220.0. Tokyo Electron advanced 2% to ¥35,280.0, Taiyo Yuden Co. Ltd. gained 3.3% to ¥9,191.0, and Furukawa Co. Ltd. edged up 0.2% to ¥4,470.0.