TOKYO – August 2025 – Japan’s benchmark Nikkei 225 continued its upward momentum this week, fueled by a weaker yen and stronger earnings forecasts from leading exporters. Automotive manufacturers, semiconductor equipment makers, and precision parts suppliers saw notable gains as overseas demand remained robust.
Analysts noted that corporate share buybacks are on the rise, with several blue-chip companies announcing record repurchase programs. Passive index inflows and active foreign capital both contributed to the rally, while domestic demand-oriented stocks showed mixed performance.
Market Insight:
For high-net-worth investors, the current “weak currency–strong equity–buyback” cycle presents opportunities but also requires careful currency risk management. Short- to medium-term strategies could involve hedging yen exposure through options or currency futures, while long-term positions may benefit from Japan’s ongoing corporate governance reforms.
Editor’s Note:
Japan’s equity story in 2025 remains centered on export competitiveness and corporate reform. However, rising import costs and wage pressures could narrow profit margins if the yen’s weakness persists beyond market expectations.