Japan Market Daily | Kabutaro & Friends

On July 8, 2026, the Nikkei 225 snapped its winning streak to close down 362.50 yen at 72,393.57 yen. Profit-taking dominated the market following the previous day's record high, while investors engaged in portfolio rebalancing ahead of major U.S. inflation data releases scheduled for later this week. The TOPIX also declined, dropping 20.50 points to 4,141.68. In the FX market, the USD/JPY cross hovered in a historical weak-yen zone in the upper 161 yen range, sustained by persistent greenback demand driven by widening yield differentials. On the macroeconomic front, Japan's preliminary monthly labor survey for May released today showed that nominal wages rose 1.9 percent year-on-year; however, real wages adjusted for inflation decreased by 1.4 percent from a year earlier, marking the 26th consecutive month of decline.