nikkei jumps as us markets rally

2025-03-18 general

Tokyo, Tuesday, 18 March 2025.
tokyo’s nikkei average surged nearly 600 yen today, mirroring monday’s gains in us markets. the boost comes as the dow jones industrial average jumped over 500 dollars. berkshire hathaway increased its investment in japan’s five leading trading companies. one usd trades for 149 jpy. this confluence of factors has analysts eyeing potentially undervalued stocks.

Market snapshot

The Nikkei Stock Average opened higher on Tuesday, March 18, 2025, trading in the mid-37,900 yen range, a rise of roughly 570 yen from the previous day [1]. This surge mirrors the upward trend in U.S. markets, spurred by gains in major stock indexes [1]. The Dow Jones Industrial Average, for instance, had climbed by over 500 dollars [1]. Market analysts suggest that the Japanese market is reacting positively to these signals from across the Pacific [1].

Buffett’s influence

Berkshire Hathaway, led by Warren Buffett, increased its stakes in Japan’s five major trading companies on Monday, March 17, 2025 [1]. This move has caught the attention of investors, as Toyo Securities strategist Ryuta Otsuka notes that Buffett’s increased investment in trading company stocks is likely to spread speculative buying to other value stocks [1]. This indicates a growing confidence in Japanese equities among prominent investors, potentially driving further market activity.

Yen depreciation boosts market

The yen’s depreciation, trading at 149 yen against the dollar, is also impacting the market [1][8]. A weaker yen typically benefits Japanese exporters, making their products more competitive in international markets [GPT]. This currency dynamic is further fueling foreign buying in stock futures, contributing to the Nikkei 225’s climb [8]. The TOPIX index also saw gains, rising for the fourth consecutive session, closing at 2,748.12, a 1.188 or 1.19 percent increase [8].

Sector performance

Semiconductor-related stocks are experiencing a notable rebound [8]. Tokyo Electron and Advantest shares saw significant gains, contributing substantially to the overall index increase [4]. Defense-related stocks, such as Mitsubishi Heavy Industries, also surged amid speculation about potential increases in Japan’s defense spending [4]. Overall, on the Tokyo Stock Exchange Prime Market, 1,224 stocks advanced, while 364 declined, indicating a broad positive trend [8].

Market outlook

The Nikkei 225 index is currently trading at 37,944.73, up 548.22 points, or 1.47% [3]. The market opened at 37,868.57, reaching a day’s high of 37,973.02 [3]. While the year-to-date percentage change remains negative at -4.92%, today’s gains suggest a shift in investor sentiment [3]. Investors should monitor upcoming U.S. retail sales data, which may provide further insights into the economic outlook and potentially influence market trends [4].

Bronnen

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