The Nikkei 225 Index dropped 0.5% to below 38,500, while the broader Topix Index fell 0.3% to 2,726 on Friday, marking a third consecutive session of declines. The pullback came as hotter-than-expected inflation figures reinforced a hawkish outlook for Bank of Japan monetary policy. Data revealed that core inflation in Japan accelerated to 3.2% in January, up from 3% in December, surpassing forecasts of 3.1%. Headline inflation also rose to 4% from 3.6%, hitting a two-year high. The benchmark indexes were further pressured this week by US President Donald Trump's tariff threats and hawkish comments from Federal Reserve officials. On Friday, notable losses included Disco Corp (-2.3%), IHI Corp (-4.1%), Advantest (-2.8%), Kawasaki Heavy Industries (-3.7%), and Mitsubishi Heavy Industries (-3%).

Source: Trading Economi