Tokyo stocks fell on August 3, with the Nikkei 225 closing at 63,445.53, down 1.4%, as electronics and auto shares were sold after coordinated U.S.-Japan yen-buying intervention drove the currency sharply higher, cutting into the weak-yen support that had underpinned exporters.
Business sentiment among Japanese companies operating in China deteriorated in the first half of 2026, with 44% reporting that conditions had worsened or somewhat worsened as tensions between Japan and China weighed on corporate confidence.
Tokyo stocks surged on July 31, with the Nikkei 225 closing at 64,362.02, up 2,494.59 points, as a sharp rebound in Asian semiconductor shares and strong U.S. technology earnings outweighed caution over the Bank of Japan’s decision to keep interest rates unchanged while warning that inflation risks remain tilted to the upside.
The yen surged in foreign exchange trading on July 30, briefly strengthening into the 157 range against the dollar, as Japan's top currency official declined to rule out the possibility of coordinated intervention with the United States.
The Bank of Japan kept its policy rate unchanged at around 1.0% on July 31, warning that higher crude oil costs and the weaker yen could push up prices across a broad range of consumer goods.
Oriental Land, the operator of Tokyo Disney Resort, posted record net profit for the April-June quarter as Tokyo DisneySea's 25th anniversary event increased attendance and sales of paid priority access services.
A consortium formed by Hitachi and Toshiba shipped a new high-speed train to Taiwan on July 30, marking the first delivery under a 124 billion yen order placed to meet growing passenger demand on the island's high-speed rail network.
The yen surged nearly 5 yen against the dollar late on July 30, briefly reaching the upper 157 range and prompting speculation that the Japanese government and Bank of Japan had intervened in the foreign exchange market.