Japan's Nikkei hits record high as auto stocks rise
What's the story
Japan's Nikkei share average has hit a new record high on Monday, extending gains from last week. The rise comes in line with the Dow Jones' strong performance and is largely driven by a weaker yen that has boosted automaker stocks such as Toyota and Honda. The Nikkei rose by 0.7% to 43,683.56 earlier today, while the broader Topix index also hit a new peak with a gain of 0.58% to 3,125.6.
Market sentiment
Japanese shares gain on renewed optimism
The recent rally in Japanese shares is also driven by renewed optimism over the domestic corporate outlook, as the impact of US tariffs becomes clearer. "Domestic equities kept the momentum from last week. There was an expectation that foreign investors would continue buying Japanese stocks," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
Stock performance
Fast Retailing, Toyota and Honda's stocks rise
Fast Retailing's stock rose by 1.2%, giving the biggest boost to the Nikkei. Automakers such as Toyota Motor and Honda Motor also saw their stocks rise by 1.58% and 1.22%, respectively, as the yen fell by 0.2% against the US dollar on Monday. A weaker Japanese currency usually boosts exporters' shares since it increases overseas profits' value in yen terms when repatriated back to Japan.