Japan Shares Fall as BOJ Rate Debate Fuels Inflation Worries

Published on 12/29/2025 at 01:53 am EST
(MT Newswires) -- Japanese shares ended lower on Monday after a summary of opinions showed Bank of Japan policymakers debating the need for further rate increases following a December hike, underscoring concern over inflationary pressures.
The Nikkei 225 fell 0.44%, or 223.47 points, to close at 50,526.92.
Some Bank of Japan board members see still-low rates as weakening the yen and fuelling inflation, a summary of opinions showed, underscoring support for further rate increases.
At the Dec. 18-19 meeting, the BOJ raised its policy rate to a 30-year high of 0.75%. Many members said rates remain too low in real terms, with some backing additional hikes in coming months, while others urged caution and flexibility.
On the corporate front, Itochu rose 4.9% after Nikkei reported its unit Itochu-Shokuhin plans to expand frozen fruit exports to Asia, the U.S. and Dubai, tapping rising demand for Japanese produce.
Nishi-Nippon Railroad fell 1.1% after Nikkei reported it plans to enter India's housing market by fiscal 2028. The group is studying condominium projects in New Delhi, Mumbai and Bengaluru, focusing on suburban locations, as it seeks growth overseas amid a shrinking domestic market.
Japan Tissue Engineeringsurged 16% after saying its cartilage therapy JACC will be covered by national health insurance from Jan. 1, 2026, following approval to expand use to knee osteoarthritis. The company said the listing will broaden patient access, with supply set to start in January 2026.

Sumber : MT Newswires