The Nikkei 225 rebounded against a backdrop of gains in U.S. stocks, but gains were capped ahead of Fed Chair Warsh's (ウォーシュ) speech at the Jackson Hole meeting. Market sentiment was also influenced by movements in U.S. long-term interest rates, concerns about higher oil prices and breaking reports on the situation in Iran.
In Tokyo trading on 28 August 2026, the Nikkei 225 ended at ¥66,405.56, approximately ¥273 higher than the previous day's close. Buying initially led the market, particularly in semiconductor and technology stocks, on a positive response to Nvidia and Salesforce earnings, after which the index continued to rebound.
Among individual stocks, Advantest, NEC, Taiyo Yuden, TDK, Fujitsu and Nomura Research Institute were bought, while Recruit traded at a high following its first price after the stock split. At the same time, gains were capped ahead of the U.S. Jackson Hole meeting. Kioxia, Fujikura and SoftBank Group saw notable declines.
In his speech, Fed Chair Warsh (ウォーシュ) suggested concern about inflation remaining above the price target and indicated the possibility of a policy response if necessary. U.S. long-term interest rates rose temporarily as a result, prompting investors to consider the possibility of early rate hikes. Declines in the SOX Index and the Nasdaq also weighed on the broader market.
In addition, reports emerged of a U.S. military attack on Larak Island in Iran, prompting concern about higher oil prices and a renewed geopolitical risk. There was a view that downward pressure on the Nikkei 225 could increase in relation to its movements this week.