Published on 01/23/2026 at 02:10 am EST
(MT Newswires) -- Japanese shares ended the week higher after the Bank of Japan raised its growth outlook and kept a hawkish inflation view while holding interest rates steady, signalling confidence that a moderate recovery could support further increases in borrowing costs.
The Nikkei 225 rose 0.29%, or 157.98 points, to close at 53,846.87.
Signalling caution over yen-driven inflation, the BOJ said currency moves could prompt firms to pass on higher import costs, lifting underlying consumer prices that guide rate decisions. Board member Hajime Takata again pushed for a rate increase, underscoring hawkish momentum despite no other backing.
The BOJ kept its policy rate at 0.75% after a two-day meeting, following a December increase.
In its quarterly outlook, it raised growth forecasts for fiscal 2025 and 2026, held its view of a moderate recovery, and lifted its fiscal 2026 core inflation forecast to 1.9% from 1.8%, saying risks to growth and prices were broadly balanced.
In economic news, Japan's private sector activity grew at its fastest pace in 17 months in January, with the Flash Composite PMI rising to 52.8 from 51.1, driven by a sharp pickup in services and a return to growth in manufacturing.
Stronger domestic and foreign demand lifted new orders and backlogs, spurring the strongest job growth since April 2019, though business optimism eased amid cost and global growth concerns.
Separately, Japan's core consumer inflation slowed sharply in December as energy price base effects faded. Core CPI rose 2.4% from a year earlier, down from 3.0% in November, while headline inflation eased to 2.1%.
On the corporate front, Tokyu, which declined 1.7%, plans to expand housing at its Tokyu Garden City project in Vietnam to about 18,000 units by 2040 from nearly 2,800, as stronger retail and transport links lift demand. The group is stepping up investment in Vietnam and other Asian markets amid sluggish growth at home.
Saint Marc, which ended 1.5% higher, is accelerating overseas expansion of its halal-friendly beef cutlet brands, targeting 150 overseas outlets by fiscal 2030. The group aims to raise beef cutlets' share of sales to 30% by expanding across Southeast Asia and the Middle East.

Sumber : MT Newswires