Nikkei 225 Sinks 1% as Tokyo Inflation Data Fuels Monetary Policy Fears

The Nikkei 225 plummeted 1% on Friday, closing at 68,254.41 as sellers dominated throughout the session.

The benchmark index traded between 68,132.16 and 68,741.49, with its lowest point reaching near the final settlement level, indicating sustained selling pressure into the close.

Local media reported that Tokyo's consumer price index for the 23 wards rose 2.7% year-on-year in September, which may have solidified expectations of continued monetary policy tightening by the Bank of Japan and contributed to investors' cautious mood.