Nikkei Hits 3-Week High: What’s Boosting Japan’s Market?

Japan’s Nikkei share average rose by over 1%, reaching its highest point in nearly three weeks. It started strong by crossing the 38,000 mark for the first time since late February, hitting 38,004.2, but ended the morning session at 37,943.23, which is still a 1.43% increase from yesterday. The Topix, a broader index, also rose by 1.44%.

Investors felt hopeful with some good news, like the rise in U.S. stocks, encouraging them to buy shares, especially trading companies. Warren Buffett’s Berkshire Hathaway increased its shares in five Japanese trading companies, which helped boost their stock prices. For instance, Mitsui & Co. jumped 4.32%, and Mitsubishi Corporation went up by 4.27%. Fast Retailing, the company behind Uniqlo, increased by 1.54%, while Advantest, a chip-testing equipment maker, surged by 3.18%.

Despite this rise, some experts, like Yusuke Sakai from T&D Asset Management, mentioned that people are still worried about U.S. President Donald Trump’s tariff policies, which could impact the market. Another analyst, Shuutarou Yasuda from Tokai Tokyo Intelligence Laboratory, noted that while investors felt a bit relieved, they are not fully confident in the market just yet. As a result, some investors chose to sell stocks when the Nikkei got close to the 38,000 mark.

Meanwhile, shares related to defence, which had been doing well due to expectations of increased defence spending, fell. Companies like IHI and Mitsubishi Heavy Industries dropped by 3.72% and 2.2%, respectively.