Nikkei Falls 255 Points on U.S. Treasury Downgrade, Rebounds 192 Points as Yen Hits 144-145 Ahead of Japan-U.S. Finance Talks

Japan's Nikkei Stock Average experienced a continued decline on May 19, 2025, amid concerns over the downgrade of U.S. Treasury bonds. The Tokyo Stock Exchange saw the Nikkei fall by over 200 points at one point, with the index closing 255 points lower due to dominant selling pressure following the U.S. credit rating downgrade. The decline was also influenced by a stronger yen, which rose to the high 144 yen range against the U.S. dollar. Technology stocks were notably weak during this period. Despite the downward trend, some companies like Daiichi Sankyo demonstrated resilience in the Japanese market. On May 20, the Nikkei rebounded with a gain of 192 points, closing at 37,691.56, as fears over the U.S. downgrade eased and buying resumed. The yen fluctuated around the 144 to 145 range against the dollar. Market participants remained cautious ahead of upcoming Japan-U.S. finance minister talks, which contributed to subdued gains. The overall market sentiment reflected ongoing adjustments to the U.S. credit rating downgrade and currency fluctuations.