Today, 12:18 AM
Rally Japanese style: #NIKKEI breaks records
On August 18, 2025, #NIKKEI hit a new all-time high (43,929). The main driver of growth was the weakening of the yen, which instantly improved export expectations and pushed up automakers: Toyota and Honda were among the leaders. plus positive corporate outlooks and an influx of foreign money amid global expectations of interest rate cuts. Banks and some chip stocks pulled in the opposite direction that day, but the weight of the auto sector and consumer leaders was enough to make the session a “record-breaking” one.
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![[Image: b5475a503d6b13dad1c20dbf140d87e2.png]](https://freshforex.com/netcat_files/Image/b5475a503d6b13dad1c20dbf140d87e2.png)
#NIKKEI on the rise: 5 keys to growth in 2025:
1. Yen exchange rate ↔ exports. A weak/volatile yen supports the margins and multipliers of exporters (automotive, industrial electronics), so any periods of currency weakness remain a catalyst for the index.
2. Soft global “rate” background. The market is pricing in a high probability of an Fed rate cut; the cheaper dollar and general risk appetite are fueling flows into Japanese stocks, especially beneficiaries of external demand.
3. Corporate reforms and buybacks. Strengthened corporate governance practices, stock market pressure to increase ROE/PB, and growth in share buyback programs remain long-term supports for the rally.
4. Industrial cycle: automotive and “new electronics.” Models with high export leverage (automotive, EV/ADAS components, semiconductor equipment) are benefiting from global fleet renewal and growth in technology CAPEX, which is maintaining the profitability of Nikkei's “core” weights. (Inference based on current trends and index structure; confirmed by the composition of session leaders.)
5. Domestic demand and earnings. Moderate wage growth and improved corporate earnings forecasts for the second half of the year are boosting the resilience of domestic demand — another plus for estimates.
The current surge is a classic mix of a weak yen + strong exporters + soft global rates. If corporate reforms and buybacks continue to work and external demand does not “collapse,” the #NIKKEI has a chance to stay close to record levels. FreshForex analysts remind us of the possible risks — a sharp reversal of the yen, delays in trade agreements, and possible tightening by the Bank of Japan — but the underlying backdrop is still playing in favor of the bulls.
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