Japan Market Daily | Kabutaro & Friends

On August 12, 2026, Tokyo's Nikkei 225 extended its gains, closing up 553.84 points (+0.83%) at 67,524.06, while the TOPIX rose 38.39 points to 4,139.00, setting a new intraday all-time high during the session. AI, semiconductor, and banking stocks continued to attract buying on the back of receding Fed rate-hike expectations following the weak US jobs report on the 7th and the rise in the SOX index on the 10th. However, with market participation thin due to the Obon summer holiday, profit-taking capped gains, with advancers numbering only 916. USD/JPY briefly rose to 159.46 but moved in a narrow range as markets awaited the US July CPI report due in the evening Japan time (consensus: headline +3.4% year-on-year, core +2.5%). Japan's 2-year government bond yield rose to the 1.65% range, its highest level in 31 years, reflecting continued pricing-in of an additional Bank of Japan rate hike in September.