Japan’s Nikkei Breaks All-Time High at 43,000 Following US-China Tariff Suspension
- ICMSS
- Aug 15
- 2 min read
Updated: Aug 22
Nikkei 225 hits record 43,274.67 as US–China tariff suspension and weak yen lift exporters.
Corporate gains and upbeat sentiment sustain momentum despite overheating risks.
By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto
August 15, 2025 at 16:30 GMT+7
The Nikkei 225 closed at 43,274.67 surpassing 43,000 threshold for the first time on Wednesday (8/13). Gains were led by the energy, technology, financial, and utilities sectors, alongside strong performances from export-oriented industries.
Sony price rose 3.46%, while Recruit Holdings gained 5.10%, as investor sentiment improved following the 90-day suspension of higher-rate tariffs between the US and China, announced earlier in the week to allow for further negotiations.
This development eased concerns over escalating trade tensions, prompting short covering and increased purchases of leveraged ETFs by retail investors. “If the market continues in this fashion, it does appear that 45,000 is the next target that you’re going to be facing,” said Takeo Kamai, head of execution services at CLSA Japan.
A financial board in Tokyo on Wednesday (8/13), shows the 225-issue Nikkei Stock Average at a record closing high of 43,274.67. | Source:Kyodo
A weaker yen, hovering around ¥147.8 against the dollar, has lifted the competitiveness of Japanese exports, boosting shares of major manufacturers. Technology and semiconductor-related stocks rose, with Advantest Corp rising 7.06%, Japan Display gaining 5.56%, and Renesas Electronics up 2.75%.
Shoichi Arisawa, general manager at IwaiCosmo Securities, said Japan has increasingly attracted investor attention due to a strong corporate outlook and a less severe impact from US tariffs than initially expected.
Profit outlooks from large-cap firms, including Toyota, which rose 0.7% on Wednesday (8/13) and 6.4% over the past week, were raised, further reinforcing investor confidence. Arisawa added that more companies may revise their forecasts upward, supported by resilient export demand and the continued benefits of a weak yen.
Media members observe the stock quotation board at the Tokyo Stock Exchange in Tokyo, Japan (8/6) | Source: Reuters (Willy Kurniawan)
"A break above 43,000 for the Nikkei would open the possibility of a move to between 43,500 and 44,000, but there is a strengthening sense that the market is overheated." said Yutaka Miura, Senior Technical Analyst at Mizuho Securities.
Positive global sentiment, reinforced by steady US inflation at 2.7% and growing expectations of Federal Reserve rate cuts, could also support Japanese equities. However, risks remain, including deteriorating US–China trade talks, a global slowdown, or abrupt currency swings.
With these risks volatility will stay high and recent gains may not last. While improved corporate outlooks and temporary relief from tariff pressures have sustained momentum, the Bank of Japan’s monetary policy stance and domestic inflation path will be critical in determining whether the market’s upward momentum can be maintained in the months ahead.
Sources:
CNBC
Japan Times
Reuters
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