Nikkei 225 closes at 62693.16, down 0.34%, as Japan inflation slows to 2.1%

The Nikkei 225 closed at 62693.16 on Friday, October 23, 2026, down 214.68 points, or -0.34%, from the previous close of 62907.84. The decline followed new inflation data from Japan and weakness across Asian markets.

What happened

Tokyo's benchmark index stood at 62693.16 at 15:25 Tokyo time, shortly before the end of the afternoon session. The previous close was 62907.84. The change of -214.68 points equals -0.34%.

The yen was weaker against the dollar. USD/JPY stood at 157.11 at 06:45 UTC, against a previous close of 156.78. That is a gain of 0.34, or 0.22%, for the pair.

Japan published its September consumer inflation data late on Thursday, at 23:30 UTC. The annual inflation rate was 2.1%, against an estimate of 2.3%.

Why it matters

Inflation data is a key input for the policy debate in Japan. It shows how quickly consumer prices are rising compared with a year earlier. The September rate of 2.1% follows 1.9% in the previous reading.

The release gives market participants a reference point when they assess the pace of price growth in Japan. The gap between the 2.1% actual figure and the 2.3% estimate is part of that assessment.

The currency market is also relevant for Tokyo equities. Moves in USD/JPY change how overseas earnings are valued for Japanese exporters, and many investors who follow the Nikkei track the pair closely. On Friday the pair was higher while the index was lower.

Regional sentiment was soft. South Korea's KOSPI fell 2.14% on Friday and was heading for a second straight weekly decline. A global selloff in AI-related stocks weighed on sentiment in Seoul.

Samsung Electronics, Hyundai Motor and POSCO Holdings led the losses there. Foreign investors remained net sellers of Korean shares. The won strengthened against the dollar, and government bond yields declined.

What to watch next

Market participants will follow whether the pressure on AI-related stocks keeps affecting Asian indexes. The KOSPI heading for a second weekly decline shows the theme is still active in the region. Tokyo's index also ended the day lower, though by a smaller margin.

The yen remains in focus. USD/JPY at 157.11 is where the pair stands at this hour, and the level can change as trading moves into the European and US sessions. The pair rose 0.22% from its previous close of 156.78.

The next Japanese inflation figures will show whether the annual rate keeps moving away from the 1.9% reading of the previous release. Further price data, together with foreign investor flows in Asian equities, will help show how markets are positioned. The Tokyo Stock Exchange next opens for its regular morning session at 09:00 Tokyo time.