---
symbol: "JP225"
name: "Nikkei 225"
date: 2026-07-31
change_pct: -1.110639168121824
direction: "down"
event_type: "theme_sympathy"
url: "https://perplo.app/why/JP225/2026-07-31"
updated_at: 2026-07-31T21:06:36.607Z
---

# Why Nikkei 225 (JP225) fell 1.11% on July 31, 2026

Nikkei 225 (JP225) fell 1.11% on July 31, 2026 — Nikkei slides on BOJ hold, weaker yen.

## What happened

The Bank of Japan held rates steady while market conviction in sustained yen intervention faded, prompting a broad Japan (Yen & Equities) selloff across both currency and equity markets.

## Why it moved

BOJ's inaction signals no near-term hawkish pivot, undermining the carry-trade unwind that had supported yen strength — equities suffer as the currency weakens and imported inflation expectations rise, pressuring real…

## Why it matters

Japan's macro policy stance remains in flux between domestic inflation (July CPI +1.9% vs +1.7% expected) and currency stability; equities are caught between BOJ dovishness and yen fragility, a structural drag on the…

## What would break the thesis

If BOJ signals a rate hike or renewed intervention intensity at the next meeting, yen stability could restore, pulling equities back up; absence of either would deepen the selloff.

## Sources

- [investingLive Asia-pacific FX news wrap: Yen intervention fades as BOJ holds](https://investinglive.com/news/investinglive-asia-pacific-fx-news-wrap-yen-intervention-fades-as-boj-holds/) — ForexLive
- [Tokyo July CPI ex-fresh food +1.9% y/y vs +1.7% expected](https://investinglive.com/forex/tokyo-july-cpi-ex-fresh-food-1-9-y-y-vs-1-7-expected/) — ForexLive
- [Japan quake survivors battle thirst, heat as death toll rises to 25](https://www.investing.com/news/stock-market-news/japans-earthquake-leaves-communities-thirsting-for-water-and-relief-from-heat-4822298) — Investing.com

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