{"id":41598,"date":"2025-08-13T12:24:53","date_gmt":"2025-08-13T04:24:53","guid":{"rendered":"https:\/\/www.phillipnova.com.sg\/?post_type=market_trends&p=41598"},"modified":"2025-08-13T16:31:54","modified_gmt":"2025-08-13T08:31:54","slug":"nikkei-225-on-a-tear-will-the-bull-run-continue","status":"publish","type":"market_trends","link":"https:\/\/www.phillipnova.com.sg\/cn\/market_trends\/nikkei-225-on-a-tear-will-the-bull-run-continue\/","title":{"rendered":"Nikkei 225 On A Tear, Will The Bull Run Continue?"},"content":{"rendered":"

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Phillip Nova\u9ad8\u7ea7\u6295\u8d44\u5206\u6790\u5e08\u6797\u77e5\u9716\u5148\u751f<\/p>\r\n

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Following the sharp drop in April, the Nikkei 225 index is on a tear. As of 10:20am this morning, the OSE Nikkei 225 Index Futures has finally breached the mythical 43,000 mark and is now hovering at the 43,270 mark. In this article, we will deep dive on what has changed in the fundamentals and what are some of the key catalysts for the bullish trend.<\/p>\r\n

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Catalyst 1 – Trade Deal<\/h3>\r\n

On 23 July 2025,\u00a0Donald Trump said he reached a trade deal with Tokyo, which sets a 15% tariff (down from 25%) on imports from Japan. The pact calls for Japan to \u201copen their country\u201d to US auto and agricultural imports. Japan will also invest $550 billion into the US, the president said, without specifying further.\u00a0<\/p>\r\n

While details on sectoral levies on autos remain unknown, but it is unlikely that Japan would invest $550b without securing tariff concessions on automobiles, which is one of their key products for export.<\/p>\r\n

Following this announcement, The Nikkei 225 +2.18% topped 40,000 (as of 08:48 SGT). The yen briefly strengthened, while JGB futures fell.\u00a0<\/p>\r\n

Naturally, the auto stocks soared after the announcement: Toyota Motors +10.11%, Nissan +6.94%, Honda +8.35%, Yamaha Motor +7.49%, Mazda +16.11%, Subaru +15.00%, and Mitsubishi Motors +13.23%. Automobile component manufacturer Denso gained 7.01%, semiconductor component manufacturer Minebea Mitsumi rose 6.93% and Fast Retailing (Uniqlo parent) also traced higher by 4.75%.<\/p>\r\n

Japan’s chief trade negotiator said the US agreed to end stacking of universal tariffs and cut car levies at the same time. Reports indicate that tariffs on Japanese vehicles could be set in mid-September, around 50 days after the two countries’ agreement in late July. Under the agreement, the additional tariff will be lowered from 25 percent to 15 percent, but no specific date has been set.<\/span><\/span>\u00a0<\/span><\/p>\r\n

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Catalyst 2 \u2013 Sustained Economic Performance for Japan Stocks<\/h3>\r\n

More recently on 8 August 2025, the Nikkei 225 jumped 1.96% (as of 9:13am) on the back of a slew of strong earnings from index heavyweights.<\/p>\r\n

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1) Softbank Group Corp (+12.42%) <\/strong>rose after it swung to a quarterly profit, buoyed by gains from its Nvidia investment and AI startups.\u00a0<\/p>\r\n