Japan Market Daily | Kabutaro & Friends

On May 15, 2026, the Nikkei 225 plummeted by 1,244 yen to close at 61,409 yen, marking a sharp two-day decline. Although the index initially surged over 500 yen to hit a fresh intraday record high—following a historic milestone on Wall Street where the Dow Jones reached the 50,000 mark for the first time—heavy profit-taking quickly emerged. Selling intensified among high-flying AI and semiconductor stocks like Kioxia and Advantest due to overbought concerns. Additionally, Japan's long-term interest rates hit a 29-year high, fueling worries over high tech valuations and potential rate hikes by the BOJ. Geopolitically, U.S. President Trump concluded his summit with Chinese President Xi Jinping in Beijing, emphasizing a mutual commitment to reopening the Strait of Hormuz before departing, though uncertainty regarding energy prices persists.