nikkei average climbs as yen weakens: what's driving the tokyo market?
tokyo, Wednesday, 9 July 2025.
tokyo’s nikkei average saw a boost in the afternoon of july 9, 2025. a weaker yen, hitting approximately ¥147 against the dollar, is a key factor. automobile stocks, particularly toyota, experienced gains. jp morgan securities’ upgrade of sghd to “overweight” with a target price of ¥1850 added to the positive momentum. notably, over 80% of stocks on the tse prime market showed buying activity. this reflects a strong overall market sentiment.
current nikkei performance
As of 13:48 on July 9, 2025, the Nikkei average stood at 39,785.44, marking an increase of 96.63 points, or 0.24% [4]. The day’s trading saw an opening price of 39,942.80 and a high of 39,971.06, both recorded at 09:00 [4]. The low for the day touched 39,573.34 at 10:32 [4]. These figures reflect the market’s intraday volatility and the forces influencing its direction. The previous day’s close, july 8, was at 39,688.81 [4].
yen’s slide and market impact
The yen’s depreciation is a significant catalyst. The yen fell to ¥147.08-10 against the dollar in the morning trading session [2]. This represents a ¥1.05 decline from the previous day [2]. This currency movement is spurred by expectations that the U.S. Federal Reserve will maintain higher interest rates due to potential inflationary pressures from U.S. tariff policies [2]. A weaker yen generally benefits japanese exporters by making their products more competitive overseas, boosting their stock values [1].
expert perspectives on market outlook
Market analysts suggest the yen’s weakness and strength in U.S. tech stocks could further propel the Nikkei [5]. One strategist noted the overall market appears robust, with over 80% of prime market stocks experiencing buying interest [1]. However, concerns remain about the impact of U.S. tariff policies on the global economy and corporate earnings [6]. Nomura Asset Management’s chief strategist believes these concerns prevent investors from committing to sustained buying, limiting the Nikkei’s potential for significant gains [6].
sghd’s positive outlook
SGHD experienced a share price rebound following an upgrade by JP Morgan Securities [3]. The investment firm raised its rating to “overweight” and set a target price of ¥1850 [3]. This positive assessment is based on expectations of a 4% increase in consolidated operating profit for the fiscal year ending March 2026, projecting ¥91 billion [3]. At 12:30, SGHD’s stock price had risen by ¥40, or 2.56%, reaching ¥1599.50 [3].
market sentiment and trading activity
Early trading saw the Nikkei 225 rise approximately ¥20 higher than the previous day, trading in the ¥39,700 range [1]. Basket trades, involving large-scale buying and selling of multiple stocks by domestic and international investors, reached approximately ¥20.3 billion [1]. The total trading value on the Tokyo Stock Exchange Prime market by 12:45 amounted to approximately ¥2.3286 trillion, with a trading volume of 1.10563 billion shares [1]. Market sentiment, as gauged by ‘everyone’s evaluation’, indicates 50% strongly want to buy, while 31.71% strongly want to sell [4].