Tokyo Stock Exchange: The broader Topix index rises 0.14%

The Japanese Nikkei index opened trading on Tuesday with a rise, and the Nikkei rose 0.12 percent to 39,210.23 points at the opening.
It also increased 0.14 percent to 2,730.52 points.

Tokyo Stock Exchange yesterday, Monday

The Japanese stock index closed higher yesterday, Monday, supported by the gains recorded by Wall Street last Friday, and the Nikkei index rose by 1.19% to close at 39,161.34 points.
At the opening yesterday, the Japanese Nikkei index began trading on an upward note, and the Nikkei rose 0.88 percent to 39,040.72 points, and the broader Topix index increased 0.68 percent to 2,720.32 points.

Inflation in Japan

A few days ago, Japan’s main inflation index rose after the impact of government energy subsidies declined.
Meanwhile, the central bank continues to analyze the data before making a decision on the timing of the next interest rate hike, according to Bloomberg.
The Ministry of Internal Affairs stated that consumer prices, excluding fresh food items, rose by 2.7% in November compared to the previous year.

High energy costs

It was driven by higher energy costs, while this figure was higher than expectations, which had indicated 2.6%, and higher than the increase in October, which amounted to 2.3%.
An index that excludes energy costs and fresh food prices rose 2.4%, compared to 2.3% in the previous month, and Friday’s data supports the view among economists that inflation continues to move in line with the Bank of Japan’s expectations.

Monetary policy in Japan

It is possible that the bank will continue to reduce the degree of monetary easing, with a gradual increase in interest rates, noting that Governor Kazuo Ueda has refrained from giving a clear indication about the timing of the next increase in interest rates.
The Bank of Japan kept its benchmark interest rate unchanged last Thursday, and did not rule out raising interest rates in January, but its lenient comments opened the way to expectations that it would increase interest rates in March.
Electricity costs rose 9.9% compared to the previous year last November, compared to 4% in October, while the increase in gas costs accelerated to 6.4% from 1.8%.