Japan Market Daily | Kabutaro & Friends

On June 1, 2026, the Nikkei 225 snapped its four-day winning streak, closing down 420 yen at 65,909.50 yen. Profit-taking dominated early trading following the previous weekend's record-high close. Investor sentiment was also weighed down by growing concerns over an economic slowdown in Asia, triggered by China's official manufacturing PMI for May falling below the critical 50-point threshold. In the FX market, the USD/JPY pair hovered in the mid-159 range, maintaining a weak-yen tone. In commodity markets, crude oil futures remained at recent lows, with Brent crude trading near 92 dollars and WTI crude in the 87-dollar range per barrel, buoyed by expectations of a gradual reopening of the Strait of Hormuz under the tentative U.S.-Iran ceasefire. Domestically, the Ministry of Finance's MoF business survey for Q1 showed an annual increase in capital expenditure across all industries, indicating resilient corporate spending in Japan.