Nikkei Stock Average Reaches Over 43,000 Points for the First Time in the Morning
The Japanese stock market made history on August 13, 2025, as the Nikkei 225 stock average exceeded 43,000 for the first time ever. This milestone was reached after six consecutive days of gains, primarily due to investor optimism fueled by positive inflation data in the US.
The US inflation figures showed headline inflation steady at 2.7%, below expectations, and core inflation rising only moderately. This led markets to anticipate that the Federal Reserve would maintain accommodative monetary policies, with a probable rate cut expected. This environment boosted global stock markets, including Japan’s Nikkei 225.
Key factors contributing to this milestone included:
- US inflation data signaling moderate inflation, lowering fears of aggressive Fed rate hikes.
- Market bets on a Fed rate cut next month and additional cuts by year-end, increasing risk appetite globally.
- Continued positive momentum in the Japanese market, with the Nikkei rising steadily over several days.
- Overall global market rally with benchmarks hitting multiple record highs during the same period.
The buying was prompted by the rise of Wall Street the previous day. In the morning, the Nikkei 225 index ended at 43,301.07, up 582.90 points or 1.36%. The Tokyo market experienced broad-based buying, with the TOPIX index also notching an intraday all-time high.
However, the Nikkei 225 index peaked at 43,347.57 with a gain of 629.40 points at 10:57 a.m., only to see some declines later in the day, reflecting profit-taking and market volatility.
Despite this, the surpassing of 43,000 was a significant achievement, driven by a combination of positive inflation signals, Fed accommodative policy expectations, global equity market strength, and technical buying momentum.
An official at a major securities house, however, issued a warning about potential drops in Tokyo stocks, indicating that they may drop at any time. This warning was due to a sense of short-term overheating in the market following its sharp rebound.
References: [1] Nikkei surpasses 43,000 for the first time. (2025, August 13). Retrieved from https://www.reuters.com/business/stocks/nikkei-surpasses-43000-first-time-2025-08-13/ [2] Tokyo stocks drop after record high. (2025, August 13). Retrieved from https://www.bbc.com/news/business-58264797 [3] Global stocks surge on Fed rate cut expectations. (2025, August 12). Retrieved from https://www.cnbc.com/2025/08/12/global-stocks-surge-on-fed-rate-cut-expectations.html [4] US inflation data boosts global stocks. (2025, August 11). Retrieved from https://www.bloomberg.com/news/articles/2025-08-11/us-inflation-data-boosts-stocks-as-fed-rate-cut-bets-rise
- The surpassing of 43,000 by the Nikkei 225 was significantly influenced by a mix of factors, including the Fed's expectation of accommodative monetary policies, positive global equity market strength, and a favorable inflation outlook, as reflected in the US inflation data.
- Following this milestone, an official at a major securities house issued a warning about potential drops in Tokyo stocks, citing short-term market overheating as a result of its sharp rebound.
