Japan Market Daily | Kabutaro & Friends

On August 3, 2026, Tokyo's Nikkei 225 fell for the first time in three sessions, closing down 607.12 points (-0.94%) at 63,754.90. It emerged that Japan and the US had conducted coordinated yen-buying, dollar-selling intervention on July 31, and the yen surged in Tokyo's foreign exchange market that day, briefly touching the low-155 range per dollar, its strongest level since May 6. Concerns over the yen's continued rise led to selling in export-related stocks such as Fanuc, Toyota Motor, and TOTO, and the recovery in AI and semiconductor stocks seen the previous week also paused. Fanuc fell sharply after its April-June earnings were seen as underwhelming. Bank of Japan Governor Ueda emphasized heightened awareness of upside inflation risks at his press conference on the 31st, and markets have begun to price in the possibility of a further rate hike at the October meeting. The euro also rose against the yen, briefly reaching the mid-179 range, its strongest level since November 2025.