Nikkei hits record high as investors weigh inflation and BOJ outlook

Japan?s stock market ended mixed on Friday, with the Nikkei 225 Index rising 0.97% to a record close of 59,716, while the broader Topix Index edged up 0.01% to 3,717.

Investor focus remained on fresh inflation data ahead of next week?s Bank of Japan policy decision. Japan?s core inflation accelerated for the first time in five months, driven by higher energy costs, but remained below the central bank?s 2% target. Markets widely expect the BOJ to leave interest rates unchanged as it navigates uncertainty linked to Middle East tensions.

Ongoing concerns over stalled US-Iran peace efforts and disruptions in the Strait of Hormuz have continued to push energy prices higher, adding to global inflation risks and complicating the policy outlook.

Technology stocks led the gains, with strong performances from SoftBank Group (+2.2%), Lasertec (+3.8%), Fujikura (+2.4%), Advantest (+5.5%) and Ibiden Co (+12.6%).

For the week, the Nikkei 225 advanced 2.12%, while the Topix declined 1.18%.