BOJ likely to consider rate hike in September, may accelerate pace

BOJ likely to consider rate hike in September, may accelerate pace—impact on yen, stocks

The Bank of Japan may raise its policy rate to 1.25% as early as the September 17-18 meeting and is considering accelerating the pace of hikes to respond to upside price pressures, according to people familiar with the matter. Former Vice Finance Minister Mitsuhiro Furusawa also said the BOJ "should raise rates in September under current conditions" and mentioned the possibility of another coordinated intervention by Japan and the U.S. The Nikkei average rose for a fourth day to 68,713 points, and the TOPIX hit a record high. Listed companies' April-June net profit is also expected to set a record high.

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BOJ may hike rates as early as September, considers faster pace—sources According to multiple sources, the BOJ is moving toward raising its policy rate to 1.25% at its September 17-18 monetary policy meeting, and is considering bringing forward the pace of hikes to respond to upside price pressures. The corporate goods price index rose 7.2% year-on-year in July, and import price pressure from the weak yen remains persistent. In the market, the dollar-yen saw yen buying advance to as high as 159.17 yen at one point. 1 2 3 4

Ex-Vice Finance Minister Furusawa: 'Yen is too weak, coordinated intervention possible again' Mitsuhiro Furusawa, chairman of the International Financial Research Institute at Sumitomo Mitsui Banking Corporation, said the yen at current levels is clearly too weak and mentioned the possibility that the Japanese and U.S. governments could at any time conduct coordinated intervention again. The market's probability of a September rate hike has risen to 77%, and Furusawa said, "Given the current situation, they should do it in September," and expects the policy rate to be raised to 1.5-1.75%. 5 6

Nikkei rises for 4th day to 68,713, TOPIX hits record high The Nikkei average closed 405 points higher at 68,713, supported by slowing U.S. inflation and buying in AI and semiconductor-related stocks, while the TOPIX rose to 4,197, a record high. Buying has spread from heavyweight stocks to financials, materials, and other sectors, with the psychological milestone of breaking 70,000 now in focus. 7 8 9

Listed companies' April-June net profit up 64%, record high According to SMBC Nikko Securities' tally, the April-June net profit of 1,084 prime market companies rose 64.0% year-on-year to 19.869 trillion yen, expected to set a record high for the period. In addition to capturing AI-related demand, automakers, financials, and a wide range of other industries posted higher profits. 10

Japan's long-term rate rise may ripple through global bond markets If rising government bond yields on BOJ rate-hike expectations prompt Japanese insurers and pension funds to shift back into domestic bonds, the stable buyer base for U.S. Treasuries could shrink and push up global long-term interest rates. The yield on 10-year U.S. Treasuries has risen to 4.65%, and spillover effects on markets overseas such as Canada are also being watched. 11

ASICS headed for first 1 trillion yen in sales; lifts net profit and dividend outlook Thanks to strong performance of flagship brands such as Onitsuka Tiger and a revision of the assumed exchange rate to a weaker yen, the company raised its full-year net profit forecast to 120 billion yen, up 21.6% year-on-year, and expects sales to reach 1.05 trillion yen, the first time above 1 trillion yen. The annual dividend was also increased from 38 yen to 44 yen.

Dentsu Group swings to first-half profit on weak yen and building sale Dentsu Group posted a consolidated net profit of 46.2 billion yen for the first half of 2026, turning around from a 73.6 billion yen loss in the same period a year earlier. In addition to the weak yen effect, a gain of about 29.6 billion yen from the sale of the Dentsu Ginza building recorded in the first quarter contributed.