The Nikkei 225 surged to an all-time high in August 2025, fueled by a weaker yen and strong corporate earnings.
TOKYO – August 5, 2025 – Japan’s Nikkei 225 index closed at a record 42,800 points, surpassing the previous peak set earlier this year. The rally was driven by export-oriented sectors benefiting from a weaker yen, which fell to 160 against the US dollar — its lowest level in over three decades.
Analysts noted that automotive, semiconductor, and industrial equipment manufacturers were among the top gainers. The Bank of Japan reiterated its commitment to ultra-loose monetary policy, signaling no immediate rate hikes despite inflation edging higher.
A weaker yen boosts exporters but increases import costs, which could pressure consumer spending. High-net-worth investors are eyeing Japanese equities for short-term gains while hedging currency exposure.
This article is intended for informational purposes and does not constitute investment advice.