Key Points:
- Nikkei 225 Hits Record: Surged 2.17% to 50,367.38, breaching 50,000 for the first time.
- Trade Optimism: U.S.-China talks boosted investor confidence across Asia.
- Stock Rally: Kawasaki, Advantest, and SoftBank led broad market gains.
Japan’s benchmark Nikkei 225 index crossed the 50,000 level for the first time on Monday, rising more than 2%. The gain came as investor sentiment improved following signs of progress in international trade discussions and strong cues from Wall Street. The broader Topix index climbed 1.61%.
Market analysts said expectations of stronger domestic demand and improving global trade conditions supported the rally. A focus on fiscal stability and consistent growth in corporate earnings has also lifted confidence among investors in Japan’s equities.
Regional markets advance
Asian markets moved broadly higher alongside Japan. South Korea’s Kospi jumped 2.1%, surpassing 4,000 for the first time, while the Kosdaq added 1.45%. Hong Kong’s Hang Seng Index gained 1.15%, and the mainland CSI 300 rose 0.83%.
Australia’s S&P/ASX 200 increased 0.54% in early trade, and India’s Nifty 50 rose 0.64%.
In the corporate sector, entertainment company Hybe surged nearly 10% after reports that K-pop group BTS is planning a 65-city global tour, half of which will take place in North America.
Market gains followed reports that negotiators from the world’s two largest economies had reached a framework addressing key trade issues. The development eased concerns about tariffs and export restrictions, encouraging investors to re-enter risk assets.
Investor confidence strengthens
The Nikkei 225 record level reflects improved optimism about Japan’s economic recovery, supported by steady export demand and renewed interest from global funds. Analysts noted that stronger household spending and business investment could help sustain growth into the next quarter.
U.S. Treasury Secretary Scott Bessent said in a Sunday interview that previously discussed tariffs on certain imports are “effectively off the table.” The statement suggested a more stable trade environment, helping reduce market uncertainty.
Global momentum continues
Global equities ended last week at record highs. In the United States, all three major indexes advanced Friday as softer inflation data supported expectations that the Federal Reserve will maintain its rate-cutting path.
The Dow Jones Industrial Average rose 472.51 points, or 1.01%, closing above 47,000 for the first time. The S&P 500 gained 0.79% to 6,791.69, and the Nasdaq Composite increased 1.15% to 23,204.87.
Investors are now watching for central bank policy updates and quarterly earnings reports from major companies. Analysts said continued moderation in inflation, steady economic growth, and improving trade conditions could keep equity markets on a positive trajectory through the remainder of the year.
Market summary (as of Monday):
- Nikkei 225: 50,363.39 (+2.16%)
- Topix: +1.61%
- Kospi: 4,021.08 (+2.02%)
- Hang Seng Index: 26,390.98 (+0.88%)
- CSI 300: 3,989.46 (+0.99%)
- S&P/ASX 200: 9,056.20 (+0.41%)
- Nifty 50: 25,959.45 (+0.64%)
The Nikkei 225 breakthrough above 50,000 marks a milestone for Japan’s equity markets, underscoring improved risk appetite and favorable global conditions that continue to support Asia’s economic outlook.
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