Japanese Market On Fire! Nikkei Again at Top
The Nikkei 225 Index climbed 0.9% to close at 38,885 on Wednesday, reaching its highest level in four months as softer economic data tempered expectations for further Bank of Japan interest rate hikes. May exports declined for the first time in eight months under pressure from US tariffs, while imports fell more than expected.
Core machinery orders also slumped in April, and manufacturing sentiment weakened in June—raising red flags about domestic demand and reinforcing the BOJ's cautious stance. On Tuesday, the central bank held rates steady and signaled a gradual approach to balance sheet reduction, emphasizing a measured path toward policy normalization. Technology and consumer stocks led the rally, with standout gains from Lasertec (+4.8%), Nintendo (+6.6%), Fast Retailing (+2%), Advantest (+1.2%), and Sanrio (+1.2%).
Source: Trading Economics