Japan's Nikkei Crosses 43,000 for First Time, Topix Hits Fresh Record High

Japan’s benchmark Nikkei 225 index extended its upswing and, for the first time, crossed the 43,000 mark on August 13, while the broader Topix index also set a fresh all-time high. The gains in Japan’s equity benchmarks followed upbeat cues from Wall Street overnight, helping the indices post gains for the sixth consecutive session.

The Nikkei climbed as much as 1.4% to a record 43,309.62, extending its upmove to 7.5% since 4 August. The milestone came on the heels of a record close in the previous session, supported by optimism over an easing in trade tensions between China and the US after Washington announced another 90-day tariff truce on Chinese exports.

The broader Topix gained 1% to closer to 3,100, also marking its sixth straight day of gains. Overnight, both the S&P 500 and the Nasdaq in the Wall Street closed at record highs, as a easing reading for July inflation bolstered expectations of a Federal Reserve interest rate cut next month.

Investor sentiment has been buoyed by hopes of a more accommodative Fed, with recent leadership changes, easing inflation, and softer labour market data reinforcing the view that the central bank could pause or even reverse its tightening cycle, reducing pressure on global equities.

Technology shares were among the standout performers in Tokyo today. Chipmaker Renesas Electronics surged more than 7%, chip-testing equipment maker Advantest rose over 2%, and Sony Group gained close to 5%.

Japanese equities had already been floating in the green last week, supported by comments from the country’s chief trade negotiator, who said US officials had indicated they planned to end the layering of universal tariffs on Japan and would follow through on earlier commitments to reduce car levies. A senior US official confirmed on Friday that an announcement was in its final stages.

While the Nikkei has trailed the Topix this year, partly due to its heavier weight mix towards exporters, leaving it more exposed to tariff concerns, the easing of those risks has helped narrow the performance gap between the two indices.