Japanese shares finished the week lower after Bank of Japan board member Naoki Tamura said Japan is close to durably reaching the central bank's 2% inflation goal, raising the prospect of an interest rate increase in coming months.

The Nikkei 225 fell 1.21%, or 697.87 points, to close at 56,941.97.

Tamura said rates are still far from neutral, pointing to scope for several more increases before policy starts to restrain growth. He said underlying inflation is nearing a sustained 2%, making it possible the target is judged met by spring, reinforcing his preference for a near-term hike.

The comments raise the likelihood that Naoki Tamura aligns with fellow hawk Hajime Takata in pressing for a policy rate increase at meetings in March or April.

On the corporate front, Otsuka Holdings (TYO:4578) reported a 20% rise in 2025 attributable profit to 64.3 billion yen as net sales climbed 19% to 1.323 trillion yen. EPS rose to 169.58 yen. For 2026, it sees profit of 61.1 billion yen on sales of 1.311 trillion yen and plans dividends of 95 yen per share.

Sony Financial Group (TYO:8729) posted an 84% jump in nine-month attributable profit to 67.1 billion yen, with ordinary revenue up 10% to 2.56 trillion yen. It also cut full-year forecasts, citing higher losses from additional bond sales, and now sees profit of 50 billion yen, with a year-end dividend of 3.80 yen.

Toyo Tire (TYO:5105) saw 2025 attributable profit fall 15% to 63.61 billion yen, while sales rose 5.2% to 594.9 billion yen. It expects profit of 54 billion yen on sales of 620 billion yen this year and plans dividends of 135 yen per share.