Japan Market Daily | Kabutaro & Friends

On August 21, 2026, Tokyo's Nikkei 225 fell, closing down 200.43 points (-0.30%) at 66,016.36, while the TOPIX edged up 7.56 points to 4,067.29 for a second straight gain. In the US on the 20th, the Dow tumbled 703 dollars as Walmart's post-earnings plunge stoked concerns about American consumer spending, and consumer-related stocks in Tokyo such as Fast Retailing and Ryohin Keikaku were sold, pushing the Nikkei down more than 900 points at one point. Losses were pared after the initial selling ran its course, supported by a firm South Korean KOSPI, buybacks in AI and semiconductor stocks such as Advantest and Kioxia Holdings, and inflows into mining, oil and coal products, and shipping on higher oil prices, allowing the index to close back above 66,000. Japan's July nationwide core Consumer Price Index rose 1.8% year-on-year, matching market forecasts and accelerating from June's 1.6%. USD/JPY rose to 159.13 in the morning before softening to 158.73 by early evening as US long-term yields stayed low.