Japan Market Daily | Kabutaro & Friends

On July 6, 2026, the Nikkei 225 snapped a two-day winning streak to close down 420.15 yen at 72,014.24 yen. Following consecutive historic highs reached late last week, profit-taking dominated the Tokyo market due to near-term overheating anxieties. Investor cautiousness grew ahead of major U.S. inflation data releases scheduled for later this week, leading to a wait-and-see attitude. The TOPIX also declined, dropping 15.22 points to 4,122.72. In the FX market, the USD/JPY cross experienced muted fluctuations, remaining locked in a historic weak-yen zone in the upper 161 yen range, sustained by persistent greenback demand amid expectations of prolonged high interest rates by the Federal Reserve. In the domestic bond market, the benchmark 10-year government bond yield finished flat from the previous weekend at 1.090 percent, reflecting ongoing market wariness over future rate hikes by the Bank of Japan.