Japanese equity markets lost more than ¥25.85 trillion, or $165 billion, in market value after September price data climbed above the central bank’s target. The Nikkei 225 Index fell 2.2%, with shares of banks and chipmakers among the primary laggards as investors reacted to the acceleration of consumer costs.
Nationwide core inflation rose 2.1% year-on-year in September, matching estimates and increasing from a previous reading of 1.7%. This first breach of the 2% threshold since December 2023 was accompanied by an overall CPI of 2.1% and a core-core measure of 2.4%. The data strengthens the case for a Bank of Japan interest rate hike in December.