Japan Market Daily | Kabutaro & Friends

On June 29, 2026, the Nikkei 225 rebounded to close up 520.38 yen at 71,278.22 yen. Investor sentiment was supported by bargain-hunting following the previous weekend's sharp decline, alongside easing Middle East tensions. Dip-buying intensified in leading semiconductor shares such as Kioxia and generative AI-related stocks, driving the overall market higher. In the FX market, the USD/JPY cross experienced muted fluctuations, remaining locked in a historic weak-yen zone between 161.20 yen and 161.50 yen, underpinned by persistent expectations of widening yield differentials. On the macroeconomic front, Japan's May commercial sales data released today showed resilient growth in retail sales, indicating steady domestic private consumption while simultaneously reinforcing market expectations for future interest rate hikes by the Bank of Japan.