Japan Market Daily | Kabutaro & Friends

On May 19, 2026, the Nikkei 225 fell for a fourth consecutive session, closing at 60,550 yen, down 265 yen. The index initially surged over 600 yen in the morning, cheered by a stronger-than-expected preliminary Q1 real GDP growth of 0.5% quarter-on-quarter and gains on Wall Street. However, it reversed course due to declining U.S. chip stocks, rising long-term interest rates in both nations, and profit-taking. In the FX market, the dollar strengthened on elevated U.S. 10-year Treasury yields, pushing the yen into the upper 158 range and briefly touching 159, keeping markets alert for government intervention. In energy, crude oil futures remained high in the 108-dollar range per barrel; although reports indicated U.S. President Trump postponed a planned strike on Iran, unresolved negotiations fueled persistent concerns over global inflationary pressures.