Japan Market Daily | Kabutaro & Friends

On June 25, 2026, the Nikkei 225 rallied sharply for the first time in three sessions, surging by 3,191.37 yen to close at a fresh historic high of 72,366.34 yen. Triggered by the robust earnings report released by Micron Technology on the previous evening, early buying dominated semiconductor and tech-related shares, prompting a broad-based market advance that surpassed its previous record set on June 22. The TOPIX also rebounded significantly. In the FX market, persistent buying of the greenback accelerated amid rising expectations that the Federal Reserve will implement additional rate hikes later this year, keeping the USD/JPY cross heavily in a weak-yen zone at 161.78 yen in New York. On the policy front, the LDP's Research Commission on Fiscal Reform compiled a proposal for the "Basic Policy 2026," recommending a shift towards lowering the debt-to-GDP ratio and establishing a new investment framework.