Tokyo equities extended their rally this week, with the Nikkei 225 jumping 2.15% on 12 August to a record close of 42,718.17—its first new closing high in about 13 months. The blue-chip gauge surged as much as 1,100 points during the session, eclipsing the previous intraday peak set in July 2024, while the broader Topix also notched an all-time high. Technology shares led the advance. SoftBank Group soared nearly 7% after reports it was preparing a U.S. listing for its PayPay unit, and chip-equipment makers Advantest and Lasertec each gained more than 6%. Investors cited stronger-than-expected domestic earnings, a weaker yen near ¥148 per dollar and fading concern over U.S. tariffs after Washington signaled adjustments to its levy regime on Japanese goods. Momentum carried into early trade on 13 August, when the Nikkei briefly topped 43,000 for the first time, adding more than 500 points and setting another intraday record. Market sentiment was buoyed by a rally on Wall Street following U.S. inflation data that reinforced expectations of a Federal Reserve rate cut as early as September. Strategists, however, warned that the index’s near-2,500-point climb in five sessions may signal short-term overheating even as corporate earnings and export tailwinds underpin the longer-term outlook.