yen dips to 148: tokyo stock exchange navigates choppy waters

2025-09-25 general

Tokyo, Thursday, 25 September 2025.
the tokyo stock exchange faced a day of seesaw trading on september 25, 2025. the nikkei average oscillated. it mirrored the previous day’s close amid a confluence of factors. a weakening yen, now at 148 against the dollar, offered a tailwind. profit-taking curtailed gains. us economic indicators and rising long-term interest rates added complexity. while some stocks like sony group and bandai namco holdings saw gains, others including advantest and softbank group faced selling pressure. the tokyo stock price index (topix) continued its rise, hitting new highs.

yen’s slide and market response

The yen’s weakness is a central theme. The yen reached the lower 148 level against the dollar [1][3]. This depreciation boosts some sectors. Export-oriented stocks, particularly in the automotive industry like toyota and honda, experienced buying activity [1]. This currency dynamic creates winners and losers. Companies heavily reliant on imports may face increased costs, potentially impacting their profitability and stock performance. Investors are closely monitoring the yen’s movement for its sector-specific implications [GPT].

us economic factors

Developments in the united states exert considerable influence. The federal reserve’s (fed) potential interest rate decisions are critical [3][4]. Recent data showed an increase of 20.5% in us new home sales for august, contrasting with an expected 0.5% decrease [3]. This surprise improvement tempers expectations for aggressive fed rate cuts. Chicago fed president Austan Goolsbee expressed unease about preemptive, large rate cuts based on assumptions of temporary inflation [3]. These factors contribute to dollar strength and yen weakness, affecting investment strategies in tokyo [GPT].

political landscape and fiscal policy

Japan’s political climate adds another layer of complexity. The ongoing liberal democratic party (ldp) leadership race introduces uncertainty. Candidates’ fiscal policy stances are under scrutiny. Remarks from candidates like Sanae Takaichi, regarding acceptance of deficit bonds if nominal growth exceeds bond interest rates, impact market sentiment [3]. Comments from Taro Kono about potential consumption tax cuts also contribute to investor considerations [3]. The market anticipates policy shifts following the election, creating both opportunities and risks [GPT].

market sentiment and expert views

Market analysts offer varied perspectives. Masahiro Ichikawa, chief market strategist at mitsui sumitomo ds asset management, suggests limited downside risk due to expectations of resumed us rate cuts, improving japanese corporate performance, and fiscal expansion under the next administration [1]. However, the nikkei’s morning session saw it fluctuating around 45,630 yen, indicating investor hesitancy [1]. Reuters anticipates the nikkei to trade between 45,350 yen and 45,850 yen [6]. These competing views highlight the market’s delicate balance between optimism and caution [GPT].

sector performance and tokyo prime market

Sector-specific trends are emerging. TOPIX is experiencing a continued rise, reaching new highs, while 26 out of 33 sectors are rising [1][7]. Nonferrous metals lead the gains, while precision instruments lag [7]. On the tokyo prime market, 649 stocks are up versus 893 down [8]. Orion beer is newly listed on the tokyo prime market [6]. These shifts indicate a dynamic market where strategic stock selection is crucial for investors seeking to capitalize on emerging opportunities and mitigate risks [GPT].

Bronnen

yen depreciation stock fluctuations