Japanese Shares Rise on Inflation Data BOJ Policy Speculation
Japanese shares closed higher on Monday, extending Friday's gains, as fresh economic data raised speculation that the Bank of Japan could tighten monetary policy.
The Nikkei 225 gained 0.14%, or 53.12 points, to finish at 38,700.87.
Tokyo's Consumer Price Index (CPI) climbed 2.6% year-on-year in August, surpassing the Bank of Japan's 2% target.
This uptick is attributed to the end of utility bill subsidies and a 26.3% rise in rice prices.
While inflation peaked at 4.3% in January 2023, it has since moderated to the mid-2% range. The Bank of Japan has slightly increased interest rates and may scale back its quantitative easing program, but it remains committed to supporting economic growth by boosting wages.
In other economic news, retail sales in Japan rose 2.6% year-on-year in July and 0.2% from June. Construction orders surged 62.8% year-on-year in July, driven by a 122.6% increase in private sector construction.
Source : MT Newswires
