Key Facts
• July 7–11: Nikkei 225 stayed above 39,500 yen but failed to reach 40,000 yen.
• July 14–17: Nikkei 225 showed four upward movements but lacked sustained momentum.
• Forecasted EPS for Nikkei 225 on July 18: 2,537 yen, nearing record highs.
• U.S. corporate earnings reports include Tesla, IBM, and Alphabet (July 23).
• Japanese firms like Canon and Mitsubishi Motors to release Q1 results (July 24–25).
• Foreign investors recorded 15 consecutive weeks of net buying in Japanese stocks.
• Ruling coalition’s Upper House election results: historic defeat but within expectations.
• Global markets: Nasdaq and S&P 500 hit record highs; FTSE 100 and SOX Index also surged.
• June 2025: Japan’s money supply (M3) reached a record 1,616 trillion yen.
• Bank lending demand index (July): +3, down from April’s +8 but stable.
Summary
The ruling coalition’s historic defeat in Japan’s Upper House election has raised questions about the future of Japanese stocks. Despite the loss, the results were within expectations, leading to a positive outlook for the market. The Nikkei 225 demonstrated resilience, with its forecasted EPS nearing record highs. Global markets, including the Nasdaq and S&P 500, also showed strong performance, reflecting favorable conditions. Key corporate earnings reports from both U.S. and Japanese firms are expected to influence investor sentiment. Additionally, Japan’s record-high money supply and stable bank lending trends suggest continued liquidity in the market. Analysts recommend a cautious approach, buying during dips to capitalize on potential gains in the latter half of the year.
