Nikkei Hits All-Time High as Automakers Benefit from Weaker Yen in Japan

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 18 2025

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Source: Reuters

Nikkei Record High: Japan's Nikkei share average rose 0.77% to a record high of 43,714.31, with the broader Topix increasing by 0.43% to 3,120.96, marking consecutive record closes.
Impact of Weaker Yen: A weaker yen contributed to gains in automakers' stocks, with Toyota and Honda seeing increases of 1.72% and 1.56%, respectively, as it enhances the value of overseas profits when converted back to yen.
Market Optimism: The rally in Japanese shares is attributed to renewed optimism regarding domestic corporate outlook and economic growth, alongside expectations of continued foreign investment.
Sector Performance: While most sectors saw gains, banks experienced declines, with the banking index falling 1.93%, led by losses from Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.