Japan Stocks Slump Amid Inflation Fears and Rate Hike Bets

Japan's stock market took a hit on Thursday as inflation concerns fueled bets of a rate hike by the Bank of Japan. The Nikkei 225 index dropped 0.8% to close at 30,435.62. The move came after a report showed that consumer prices rose 2.1% in June from a year earlier, exceeding expectations.

The inflation data has sparked speculation among investors that the BOJ may raise interest rates sooner than expected to combat rising prices and maintain economic stability. This sentiment was reflected in the yen's strength against the US dollar, which rose 0.5% to 136.25 per dollar.

Featured Tech Stocks were largely unaffected by the market volatility, with companies such as TSMC, NVIDIA, and ASML Holding remaining resilient despite the broader market decline.