Key Facts
• August 18: Nikkei closed at 43,693.87 yen, marking its fourth record high in a week.
• August 12: Nikkei surpassed its previous record after 1 year and 1 month.
• February 22, 2024: Nikkei broke a 34-year record, reaching 39,098.68 yen.
• Key drivers: Global asset price surge, delayed capital inflow into Japanese stocks.
• Risks: “Ueda Shock” recurrence unlikely due to cautious monetary policy.
• Future outlook: Yen depreciation expected to boost export-driven companies.
• Investment advice: Diversify portfolios with Japanese stocks for growth potential.
Summary
The Nikkei index reached a record high of 43,693.87 yen on August 18, 2025, marking its fourth peak in a week. This surge is attributed to delayed capital inflows into Japanese stocks amid a global rise in asset prices. Key factors include expectations of yen depreciation and improved corporate earnings. Despite past market shocks like the “Ueda Shock,” experts believe the risk of a similar event is low due to cautious monetary policies. Individual investors are advised to diversify their portfolios by including Japanese stocks, which are seen as undervalued and poised for growth.
