Japan Macro Daily(Beta Mode)
Japan's Inflation Cools, PMIs Soften
Market Snapshot
| Asset | Level | Change |
|---|---|---|
| Nikkei 225 | 52,252.28 | +1.43% |
| USD/JPY | 158.69 | -0.34% |
| EUR/JPY | 184.10 | +0.02% |
| GBP/JPY | 212.78 | +0.24% |
| Gold | 4,468.00 | +1.45% |
| Brent Crude | 99.99 | +0.05% |
| Bitcoin | 70,056.45 | -1.21% |
| Japan 2Y Govt Yield | 0.73% | +0.00% |
| Japan 10Y Govt Yield | 2.11% | -5.80% |
Prior Economic Events
| Data | Prior | Cons | Actual |
|---|---|---|---|
| Inflation Rate Year-over-Year | 1.50 | - | 1.30 |
| Core Inflation Rate Year-over-Year | 2 | 1.70 | 1.60 |
| S&P Global Manufacturing PMI Flash | 53 | 52.80 | 51.40 |
| S&P Global Services PMI Flash | 53.80 | - | 52.80 |
Japan Industrial Production YoY | Type: macro_line | Ind Prod YoY %: 0.7929 (2025-12-01) | Range: -6.13–20.69 | Trend(5pt): 13.39,-2.765,-4,-1.435,0.7929
Today's Economic Events
| Data | Prior | Cons | Time |
|---|---|---|---|
| BoJ Monetary Policy Meeting Minutes | - | - | 15:50 |
| Sunday (2026-03-29) | |||
| BoJ Summary of Opinions | - | - | 15:50 |
- Japan's headline inflation YoY eased to 1.3% (prev. 1.5%), core to 1.6% (cons. 1.7%, prev. 2.0%), testing BoJ resolve.
- Flash PMIs declined: manufacturing to 51.4 (cons. 52.8, prev. 53.0), services to 52.8 (prev. 53.8), signaling moderating growth.
- Nikkei 225 rose 1.43% to 52,252.28 on yen strength; 10Y JGB yield fell 5.80% to 2.11%.
Yesterday's Recap
Japan's economic indicators on March 23 showed easing inflationary pressures, with headline inflation YoY at 1.3% (prev. 1.5%), below expectations. Core inflation YoY slowed to 1.6% (cons.
1.7%, prev. 2.0%), challenging the Bank of Japan's normalization path. S&P Global Manufacturing PMI flash registered 51.4 (cons.
52.8, prev. 53.0), indicating slower but still expansionary factory activity. Services PMI flash was 52.8 (prev.
53.8), remaining in growth territory despite the dip. The Nikkei 225 advanced 1.43% to 52,252.28, supported by tech sectors amid global volatility. USD/JPY declined 0.34% to 158.69 as the yen gained on safe-haven demand, while the Japan 10Y government yield dropped 5.80% to 2.11%, reflecting reduced BoJ hike expectations.
EUR/JPY increased 0.02% to 184.10, and GBP/JPY rose 0.24% to 212.78, in a mixed risk environment.
The Day Ahead
The main event today is the BoJ Monetary Policy Meeting Minutes at 15:50 ET, offering potential clarity on recent decisions and yield curve control. Traders will look for hints on normalization amid softer inflation. No significant releases are set for March 25, allowing focus on recent PMI and inflation data.
The BoJ Summary of Opinions arrives on March 29, which may outline views on inflation and yen trends. Officials could issue statements on currency volatility, influencing JGB yields and forex pairs.
Other Economic Notes
Japan's economy faces ongoing yen depreciation, raising import costs, as evidenced by manufacturing input price increases tied to Middle East tensions. Wage growth is key for durable inflation, but recent moderation may postpone BoJ tightening. Regional banks, such as Suruga Bank Ltd, are under pressure from monetary shifts and yen movements, highlighting sector risks.
