Mixed trend in Asia; inflation in Japan rose to its highest level this year
The Nikkei index is down 0.4%, the Kospi is up 0.8%, and the Hang Seng is climbing 0.7%. Japan's inflation rate reached 1.9% in July amid rising energy costs.
Nikkei loses 0.4%, Kospi rises by 0.8%, Hang Seng climbs by 0.7%; the inflation rate in Japan stood at 1.9% in July, compared to 1.6% in June; yesterday, the stock exchanges on Wall Street closed with declines.
The inflation rate in Japan stood at 1.9% in July, compared to 1.6% in June — the highest level this year — against the backdrop of rising energy prices due to the war in Iran. Core inflation, excluding fresh food prices, rose to 1.8%, compared to 1.6% in June, in line with analysts' forecasts.
Energy prices rose for the first time since November 2025, despite government subsidies, following the increase in oil prices. This was reflected in wholesale inflation, which reached 7.2% in July, with electricity tariffs being the most influential factor. Fresh food prices jumped by 7% in July, compared to an increase of 3.9% in June.
The core-core inflation rate, excluding fresh food and energy, stood at 1.9% in July, compared to 1.7% in June.
The inflation data will be among the factors that the Bank of Japan will carefully examine at its next policy meeting on September 17 and 18, where it is widely expected to raise the interest rate from 1% to 1.25%.
Trading in Asia is showing a mixed trend. The Nikkei index in Japan is losing 0.4%, Kospi in Korea has erased the declines from the opening and is now rising by 0.8%, the Hang Seng index in Hong Kong is climbing by 0.7%, and the Shanghai Stock Exchange is stable.
Yesterday, the stock exchanges on Wall Street closed with declines: the Dow Jones lost 1.3%, the Nasdaq — 1%, and the S&P 500 weakened by 0.9%. This morning, futures on the leading indices in New York are recording slight gains of 0.1%.
