tokyo stocks surge: auto sector leads nikkei recovery amid yen slump

tokyo stocks surge: auto sector leads nikkei recovery amid yen slump

2025-04-01 general

Tokyo, Tuesday, 1 April 2025.
tokyo’s nikkei stock average experienced a rebound. This surge was propelled by gains in major auto stocks like toyota and honda. A key factor is the yen’s slide to the 150 level against the dollar. The market is attempting to self-correct after a three-day drop. The yen’s weakness is particularly beneficial for export-focused companies. This dynamic is reshaping investor strategies in tokyo’s financial landscape. The index opened 343.63 yen higher, marking a significant turnaround.

initial market response

The tokyo stock market saw the nikkei average begin its rebound on tuesday [1]. The opening value was ¥35,961.19, a significant ¥343.63 increase from the previous day [1]. This positive movement is partly attributed to the rise in the dow jones industrial average in the u.s. market on march 31 [1]. Investors are strategically engaging in buying, aiming to capitalize on the market’s self-correcting tendencies after a notable ¥2,000 decrease over the preceding three days [1].

yen’s impact and sector performance

The yen’s depreciation to the ¥150 level against the dollar is a crucial factor [1]. This currency dynamic is particularly advantageous for export-oriented industries, including major players like toyota and honda, which have seen their stock values increase [1]. The bank of japan’s march survey on short-term economic outlook for enterprises showed that the business conditions index for large manufacturers was +12, down from +14 in december 2024 [1]. However, this aligned with market expectations, limiting its immediate impact on trading [1].

market sentiment and intraday activity

As of 09:18 on april 1, 2025, the nikkei average reached ¥35,987.44, marking a +369.88 increase [8]. Simultaneously, the topix index stood at 2,691.13, reflecting a +32.40 gain [8]. The estimated trading volume for the prime market was 250.42 million shares [8]. Examining individual stock contributions, fast retailing led the gains with a +75.04 contribution, trading at ¥45,000, up ¥940 or +2.13% [7]. Conversely, advantest showed the largest negative contribution at -5.85, with shares at ¥6,450, down ¥22 or -0.34% [7].

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nikkei yen