Japan's Nikkei 225 stock average surged to record highs over August 12-13, 2025, driven by easing concerns over U.S. tariffs and optimism in global trade. On August 12, the Nikkei climbed sharply, surpassing its previous intraday record of 42,426.77 set on July 11, 2024, reaching intraday highs above 42,800 with gains exceeding 1,100 points at times. The index closed at 42,718.17, marking its highest closing level ever, an 897-point increase from the previous close. This rally was supported by positive developments in U.S.-Japan tariff negotiations, a weaker yen supporting exporters, and strength in semiconductor stocks. The momentum continued on August 13, when the Nikkei breached the 43,000 mark intraday for the first time, closing at 43,274.67, up 556 points from the prior day and extending its rally to six consecutive sessions. The advance was also influenced by a positive U.S. stock market and easing inflation concerns in the U.S. However, on August 14, the Nikkei reversed course, opening lower with a drop exceeding 600 points amid profit-taking, a stronger yen, and concerns over Bank of Japan policy. The index fell below the 43,000 level, reflecting market caution after the recent rapid gains.