The Nikkei 225 index rose for the seventh consecutive trading day, closing at 36,830.69 on May 2, 2025, up 378.39 points, or 1.04%. The index briefly climbed as much as 524 points to a high of 36,976.51 during the session, approaching the 37,000 mark. The rally was supported by a weaker yen and strong earnings results from major US technology companies. The yen depreciated sharply against the US dollar, trading in the upper 145 yen range—its weakest level in about three weeks. The decline followed the Bank of Japan's decision to keep interest rates unchanged, with speculation that additional rate hikes will be delayed. The widening interest rate differential between the US and Japan contributed to the yen's decline. Export-oriented sectors, particularly auto and chemical shares, benefited from the weaker yen, which boosts overseas profits when repatriated. Precision instrument, pharmaceutical, and chemical issues led gains, while banking, wholesale, and other financial sectors declined. The broader Topix index finished 0.31% higher at 2,687.78. Among individual stocks, Yamato Holdings rose over 5% and AOKI Holdings gained more than 12% following earnings announcements, while Seiko Epson fell over 4%. On the Tokyo Stock Exchange Prime Market, there were 817 gainers, 766 losers, and 52 unchanged stocks. Trading volume reached 4.75 trillion yen. Hopes for progress in ongoing tariff negotiations between Japan and the United States also supported the market. Japan's chief negotiator, Ryosei Akazawa, indicated optimism about advancing discussions on trade expansion and economic security, with the possibility of a bilateral agreement at the upcoming Group of Seven summit in June. In the foreign exchange market, the yen's depreciation was attributed to both domestic monetary policy and stronger-than-expected US economic data.
