The majority of the stock markets in Asia are going up on Tuesday. In Japan in particular, the bulls are prevailing after yesterday’s holiday.
The friendly guidelines from the USA and the ongoing enthusiasm for AI semiconductor stocks are having a positive effect on the mood on the Asian stock exchanges.
Why the Nikkei is rising significantly
The upward trend is particularly noticeable in Tokyo, where the Nikkei 225 temporarily rose by 3.21 percent to 53,607.04 points. There are several reasons for this. On the one hand, the stock market was closed at the start of the week and there was a lot of catching up to do. On the other hand, media such as The Japan Times report that Prime Minister Sanae Takaichi could call for early elections. One consequence of this would be an additional fiscal stimulus, which is positive. A weaker yen, which remains near its lowest level in a year amid election speculation and ongoing tensions between Japan and China, is further improving the outlook for domestic exporters.
Yen shows clear weakness
Additionally, Japan’s Finance Minister Satsuki Katayama said that US Finance Minister Scott Bessent shared Tokyo’s concerns about the yen’s recent weakness. This is fueling renewed speculation in foreign exchange trading that intervention could be made to support the currency. This puts additional pressure on the yen. The Japanese currency fell as much as 0.5 percent to 158.91 yen per dollar, falling below the previous low of 158.87 set in January 2025.
The prices of Japanese government bonds (JGB) are also falling. This is due to concerns about Japan’s deteriorating fiscal situation amid the prospect of early elections, which could lead to further stimulus and higher borrowing. “Concerns about Japan’s fiscal situation could increase if yields rise sharply,” writes Tomohisa Fujiki of Citi Research.
By Thomas Leppert
DOW JONES
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