The Nikkei 225 rose for a fourth consecutive day to close at ¥68,713, while the TOPIX also renewed its record high. Expectations for a Goldilocks economy and a recovery in AI and semiconductor stocks are supporting the market.
The Nikkei 225 and the Tokyo Stock Price Index (TOPIX) are showing a strong recovery, with the Nikkei closing at ¥68,713 on 14 August. Shortly after trading began, the ¥70,000 mark briefly came within reach. Broad-based gains across constituents are strengthening market momentum.
The moderation in US inflation indicators and easing inflation concerns are supporting the global equity rally and the rise in Japanese stocks. July CPI rose 3.4% from a year earlier, in line with market expectations, while the month-on-month increase slowed. PPI was also flat month on month, and the retreat in expectations for additional Federal Reserve rate hikes is improving market sentiment. The yen’s renewed weakening to the mid-¥159 range against the US dollar is also supporting overseas investors’ appetite for Japanese stocks.
AI and semiconductor stocks have regained their position as the market’s main drivers. Advantest regained its previous level on 13 August and rose to ¥38,730 on 14 August, renewing its record high for a second consecutive day. The recovery toward pre-selloff levels is encouraging buying across the market, while stock-specific inflows are supporting the recovery of the equity market as a whole.
The article contains no wording that directly addresses the market outlook. It identifies developments in AI and semiconductor stocks and macroeconomic stability as factors supporting the market’s recovery. Investors are watching the transition to a Goldilocks economy, the continuation of the yen’s weakening trend, and US interest-rate developments.