After a firm start and a subsequent fall from higher levels, the Japanese stock market is trading marginally higher on Friday with investors mostly treading a cautious path amid worries about the economic situation in Europe. A weaker than expected report on Japanese inflation too has contributed to the market's retreat from higher levels.
Pharmaceuticals, electric power, manufacturing and insurance stocks are mostly trading higher. Financial, mining, communications and transport stocks are trading mixed.
The benchmark Nikkei 225 index, which advanced to 8,617 in early trades, is currently at 8,581, up 17.6 points or 0.2 percent from its previous close.
Japan Tobacco Inc shares gained over 3.5 percent following an announcement from the company that it will pay 475 million euros for acquiring Belgium-based Gryson NV.
Tokyu Land Corp, Dai Nippon Printng, Sumitomo Realty & Development, Takeda Pharmaceuticals, Aozora Bank, Teijin, Toppan Printing, Astellas Pharma and Seven & I Holdings are trading higher by 1.5 to 2.5 percent.
Sumco Corp, Sony Corp, Oki Electric Industry, Japan Steel Works and Advantest Corp are down 3 to 4 percent.
JFE Holdings, Mitsubishi Motors, IHI Corp, Pacific Metals and Mitsubishi Materials are among the other major losers.
On the economic front, core consumer prices in Japan were up 0.2 percent on year on April, the Ministry of Internal Affairs and Communications said on Friday - beating forecasts for a gain of 0.1 percent and unchanged from the previous month. Overall inflation was up 0.4 percent - in line with expectations and easing from 0.5 percent in March.
On a monthly basis, core CPI was up 0.2 percent and overall inflation added 0.1 percent.
Tokyo inflation - considered a leading indicator for the nationwide trend, was down 0.5 percent on year in May - missing forecasts for -0.3 percent, which would have been unchanged from the April reading.
Core CPI in Tokyo plummeted 0.8 percent, well shy of forecasts for -0.5 percent, which also would have been unchanged from a month prior.
In the currency market, the U.S. dollar traded around the mid 79 yen range in early deals in Tokyo. The yen is currently trading at 79.62 to the dollar.
Among other markets in the Asia-Pacific region, Hong Kong, South Korea, Singapore and Taiwan are trading notably higher. Malaysia is up marginally, while New Zealand and Australia are slightly weak. Markets across the region ended on a mixed note on Thursday.
On Wall Street, stocks saw a choppy ride on Thursday, as traders seemed reluctant to make any significant moves amid some uninspiring economic data and on lingering concerns about the financial situation in Europe.
The major averages bounced back and forth across the unchanged line, eventually ending the session mixed. While the Nasdaq ended down 10.7 points or 0.4 percent at 2,839.4, the Dow rose 33.6 points or 0.3 percent to 12,529.8 and the S&P 500 edged up 1.8 points or 0.1 percent to 1,320.7.
Major European markets moved higher on Thursday. While the German DAX index rose 0.5 percent, the French CAC 40 index advanced by 1.2 percent, and the U.K.'s FTSE 100 Index jumped 1.6 percent.
U.S. crude oil futures rebounded to settle higher on Thursday, after reaching a seven-month low in the previous session. Crude for July delivery gained $0.76 or 0.9 percent to close at $90.66 a barrel on the New York Mercantile Exchange.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.