Japan Market Daily | Kabutaro & Friends

On June 23, 2026, the Nikkei 225 snapped an eight-day winning streak to plummet by 2,565.58 yen, closing at 69,788.38 yen and falling back below the 70,000 threshold. Following its rapid expansion to the historic 72,000 level on the previous day, profit-taking dominated the Tokyo market amid strong anxieties over near-term overheating. Overnight losses in the U.S. Nasdaq index and lingering worries over extended high interest rates further exacerbated the downturn, triggering a broad sell-off centered on leading AI and semiconductor-related shares that had previously driven the rally. In the FX market, the USD/JPY cross maintained its persistent weak-yen tone fueled by expectations that the Federal Reserve will prolong its tight monetary policy, with the bank telegraphic transfer middle (TTM) rates hovering firmly in the lower to mid-161 yen range between 161.16 yen and 161.63 yen.