A repeat of the sharp yen appreciation seen in the summer of 2024 is unlikely under current conditions, with persistently high U.S. interest rates and continued structural pressure on Japan's currency making another rapid surge difficult, according to UBS wealth management chief investment officer Daiju Aoki.
Japanese companies delivered a wave of strong earnings on August 7, with Fujikura, Recruit Holdings, INPEX and several other major groups raising forecasts as artificial intelligence investment, higher resource prices and resilient consumer demand lifted profits.
Tokyo stocks ended slightly lower on August 7, with the Nikkei 225 closing at 65,606.71, down 76.55 points, or 0.12%, as selling in chip-related and artificial intelligence-linked shares outweighed solid buying in the broader market and a late recovery led by Fujikura.
Nippon Steel has completed a new production line at its Nagoya Works after investing about 300 billion yen, as Japan's largest steelmaker seeks to expand production of high-performance steel products primarily for automakers.
Hokkaido's minimum wage is expected to rise by 56 yen to a record 1,131 yen per hour in October, entering the 1,100-yen range for the first time, but workers and business owners are concerned that tax and social insurance thresholds could lead employees to limit their hours.
The average summer bonus paid by major Japanese companies rose above 1 million yen for the first time, reaching a record 1,042,537 yen as strong corporate earnings and substantial wage increases lifted employee compensation.
Japan's government and the Bank of Japan conducted a record 6.2787 trillion yen yen-buying, dollar-selling intervention on April 30, the Finance Ministry said on August 7.
Tokyo stocks diverged on August 6, with the Nikkei 225 closing at 65,683.26, down 617.18 points, or 0.93%, as selling in artificial intelligence and semiconductor-related heavyweights outweighed broad gains across the wider market.