Japan Market Daily | Kabutaro & Friends

On July 7, 2026, the Nikkei 225 rebounded sharply to close up 741.83 yen at a fresh historic high of 72,756.07 yen, breaking its record for the first time in three sessions. Following overnight gains across major Wall Street indexes, buying dominated the Tokyo market from the opening bell, particularly centering on leading semiconductor stocks and high-tech shares related to autonomous driving and generative AI technologies. The TOPIX also advanced significantly by 39.46 points to a record high of 4,162.18. In the FX market, the USD/JPY cross hovered firmly in a historic weak-yen zone in the upper 161 yen range, sustained by persistent greenback demand amid expectations of widening yield differentials. On the macroeconomic front, Japan's May household spending data released today revealed that real expenditures for households with two or more persons fell 0.5 percent year-on-year due to rising prices, highlighting lingering caution in domestic private consumption.