Overview

• The Nikkei 225 climbed to 42,849.67, surpassing its July 2024 peak and mirroring all-time highs in global markets this year.
• Investors credited a reported 90-day extension of the US-China trade truce for bolstering stock sentiment.
• A weak yen and the muted effect of US tariffs have led Japanese companies to lift their earnings forecasts.
• Technology shares have slowed after driving earlier gains, prompting some analysts to warn of a near-term rally peak.
• Obon holiday–reduced trading volumes are heightening price swings and raising concerns about short-term volatility.