Nomura Holdings, Inc.

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Economist Yoshimasa Maruyama predicts the Nikkei Index could reach 65,000 points by year-end, driven by market momentum and stable governance. He anticipates further growth to 73,000 by 2027 and 80,000 by 2028, but warns that escalating Middle East conflicts could negatively impact asset prices.

CoinLive

CSOP NIKKEI225

Mitsubishi UFJ Financial Group, Inc.

FI2 CSOP NIKKEI

FL2 CSOP NIKKEI

BlackRock, Inc.

STOCKS | Nikkei Index Could Reach 65,000 by Year-End, Economist Predicts

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Japan's economy grew by an annualized 2.1% in Q1, surpassing forecasts, but faces challenges due to the Iran war's impact on energy supplies. Private consumption rose 0.3%, and net external demand contributed positively. Analysts predict potential contraction in Q2 as energy costs rise, affecting inflation and corporate profits. The Bank of Japan's interest rate hike expectations may shift depending on the severity of supply disruptions.

- Japan's economy grew at an annualized rate of 2.1% in the first quarter, exceeding the market's expected 1.7%.  
- This growth is now threatened by the energy impacts of the Iranian conflict, with analysts predicting a slowdown in future quarters.  
- Private consumption increased by 0.3%, while net external demand contributed 0.3 percentage points to growth, despite rising risks from oil price fluctuations and supply disruptions.

Businesstimes News

ISHRS MSCI Japan

Dai-ichi Life Holdings,Inc.

Thomson Reuters

Japan’s economy grows at solid pace in Q1, but Iran war set to upend momentum

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Japan's service sector growth slowed to an 11-month low in April, with the S&P Global Japan Services PMI dropping to 51 from 53.4 in March. New orders and export business declined due to rising costs and uncertainty from the Middle East conflict. Input costs surged at the fastest rate in a year, prompting companies to increase output charges. Employment rose for the eighth consecutive month, but hiring remained modest. Overall, business sentiment is dampened by concerns over future price hikes and customer demand, with optimism at its lowest since August 2020.

- Japan's service sector growth slowed in April to its lowest rate in 11 months, with the final S&P Global Japan Services PMI dropping to 51 from 53.4 in March.  
- Factors such as rising costs and uncertainty related to the Middle East conflict affected sentiment, with new orders growing at the slowest pace since last October.  
- Despite an increase in employment for the eighth consecutive month, recruitment remained modest, and optimism for the year ahead fell to its lowest level since August 2020 amid concerns about pricing and demand.

Asset Management One Co., Ltd.

Japan Agricultural Cooperatives Group

Simplex Financial Holdings Co., Ltd.

S&P Global

Japan service sector growth slows to 11-month low in April: PMI

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KORU

Japanese and South Korean stock markets opened and closed higher on May 7. The Nikkei 225 index rose by 3320.72 points (5.58%) to a record high of 62833.84 points, while the KOSPI index increased by 105.48 points (1.43%) to 7490.04 points.

Direxion Daily Korea Bull 3x Shares ETF

ISHRS MSCI S Korea Capped

Pro Ultrshrt Yen

Japanese and South Korean stock markets opened higher and closed higher, with Japanese stocks continuing to hit new highs.

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The Nikkei 225 Index is experiencing a bull run, reaching ¥62,836 with a year-to-date gain of 16.67%. This surge is attributed to Softbank's rising stock price and the potential for a US-Iran deal, which could positively impact Japan's energy imports. The index is also benefiting from a global stock market rally and the AI boom, with Softbank heavily investing in AI. Technical analysis suggests the index could reach nearly ¥69,000, while a drop below ¥58,000 would negate this bullish outlook.

Invezz

SoftBank Group Corp.

Sumitomo Mitsui Trust Holdings, Inc.

MS&AD Insurance Group Holdings, Inc.

Here’s why the Nikkei 225 Index is in a bull run and why it may hit ¥69k soon

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Japan's Nikkei 225 index surpassed 62,000 for the first time, driven by a 5% rally in tech, materials, and electronics sectors. Ibiden led with a 22.43% increase, followed by SoftBank Group and Mitsui Kinzoku with gains of 16.45% and 17.05%, respectively. The rally follows Tokyo's Golden Week holidays and is fueled by strong US tech earnings, with Wall Street's Nasdaq and S&P 500 also reaching record highs.

IBIDEN CO., LTD.

Daiwa Securities Group, Inc.

SoftBank

Mitsui Mining and Smelting Company, Limited

Renesas Electronics Corporation

Tosoh Corporation

NASDAQ Composite Index

S&P 500

Nikkei 225 Surpasses 62,000 Amid Broad Rally

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SoftBank shares surged 16.5% as Japan's Nikkei 225 hit record highs, driven by a tech rally following the Golden Week holidays. The surge was fueled by global AI-related stock performance, particularly in semiconductor firms like Advantest and Tokyo Electron. Analysts noted that SoftBank's ties to AI companies like Arm and OpenAI contributed to investor optimism, reflecting a growing demand for AI infrastructure. The rally also coincided with easing geopolitical tensions and a strong performance from U.S. tech stocks, particularly in the semiconductor sector.

CNBC

Tokyo Electron

Advantest Corp.

Tokyo Electron Ltd.

Invesco Semiconductors ETF

iShares Semiconductor ETF

VanEck Semiconductor ETF

SPDR S&P Semicon

Direxion Semicon Bull 3X

Super Micro Computer

OpenAI

SoftBank shares surge over 16% as Japan tech stock-fueled rally lifts Nikkei 225 to record highs

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The NIKKEI 225 Index fell 0.34% this week, down 203.06 points to 59513.12, marking its largest weekly decline since April 2026 and ending a three-week winning streak. Despite today's rise of 0.38%, the index remains 1.69% off its record close of 60537.36. Year-to-date, it has increased by 18.22%, up 9173.64 points.

MorningStar

NIKKEI 225 Index Falls 0.34% This Week to 59513.12 — Data Talk

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Japan's core inflation rate remained at 1.5% in April, below the Bank of Japan's target for the third month. This decline is attributed to fuel subsidies countering rising raw material costs. Analysts expect the Consumer Price Index to rise as oil prices increase and the yen weakens, pressuring the Bank of Japan to consider interest rate hikes. The bank kept its benchmark rate at 0.75% but noted the need to manage potential inflation increases and plans to raise rates once geopolitical risks diminish.

Samsung Life Insurance Co., Ltd.

Japan's Core Inflation Rate Remains Below Target for Third Consecutive Month

Core consumer prices in Tokyo increased by 1.5% year-on-year in April, according to government data. This figure is below economists' median estimate of a 1.8% rise. The core consumer price index includes oil products but excludes fresh food prices.

- In April, Tokyo's core consumer prices rose by 1.5% year-on-year.  
- This index, which includes oil products but excludes fresh food prices, fell short of economists' expectations of a 1.8% annual increase.  
- The data reflect ongoing inflation trends in Japan's capital amid broader economic conditions.

Tokyo April core CPI rises 1.5% yr/yr

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