Japan Market Daily | Kabutaro & Friends

On June 18, 2026, the Nikkei 225 advanced for a sixth consecutive session, closing up 1,151.24 yen at a record high of 71,053.49 yen, breaching the 70,000 threshold for the first time on a closing basis. Investor sentiment was bolstered by news that the U.S. and Iran officially signed a ceasefire memorandum, easing geopolitical risks. Although Wall Street benchmarks declined following the FOMC meeting where interest rates were held steady but a hawkish shift indicated a potential rate hike later this year, the Tokyo market saw aggressive risk-on buying led by AI and semiconductor shares. In the FX market, the USD/JPY cross faced upward pressure with 161 yen in sight due to widening yield differentials. On the macroeconomic front, Japan's May trade balance recorded a deficit of 378.6 billion yen due to high energy import costs.