Japan Market Daily | Kabutaro & Friends

On August 31, 2026, Tokyo's Nikkei 225 edged lower, closing down 93.63 points (-0.14%) at 66,311.93, while the TOPIX extended its gains, rising 9.58 points to 4,156.29. The index opened 737 points lower on the previous week's weakness in US technology shares and rising long-term interest rates in both Japan and the United States, and at one point fell more than 1,500 points to 64,832.10, slipping below 65,000 for the first time in four sessions. It then finished at the day's high as bargain hunting after the rapid decline, a recovery in South Korea's KOSPI and buybacks in futures came in. Auto shares on the weaker yen and bank shares on higher rates also lent support, and 22 of the 33 sector indexes rose. Advantest and TDK alone subtracted about 398 points from the index, while Fast Retailing, Kioxia and Recruit held firm. USD/JPY reached 160.20 in the morning, its highest in about a month, before pulling back to around 159.73.