Japan’s Nikkei 225 stock index hit an all-time record Tuesday, rising as high as ¥42,999.71 — and closing up 2.15%, at ¥42,718.17 — on trade optimism and hope for an interest rate cut in the United States.
The surprise rally, which came after months of uncertainty and with the country on the cusp of recession, took the benchmark beyond its July 2024 record of ¥42,426.77. The index is now up almost 18% over the past year.
Stocks took off after Japan and the United States partially addressed their dispute on how to execute a trade deal reached on July 22, with the U.S. agreeing to revise its executive order so that Japan's “reciprocal” tariff is calculated in a way that results in a lower effective rate.
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