Nikkei Closes at 3-Week High on Wall Street Rebound

Japan’s Nikkei index closed at its highest level in three weeks on Wednesday, April 23, 2025, buoyed by a strong rebound in Wall Street and easing political and trade tensions between the U.S. and China, which boosted investor appetite for technology and auto stocks. The Nikkei rose by 1.89% to close at 34,868.63, after hitting an intraday high of 35,142.12 — its strongest level since April 2. The broader Topix index also advanced, gaining 2.06% to reach 2,584.32

These gains were supported by strong performances from major companies including Toyota, which surged 5%, and Sony, which jumped 5.68%. Fast Retailing, the parent company of the Uniqlo brand, rose 1.22%, while semiconductor manufacturers Tokyo Electron and Advantest added 2.45% and 3.1%, respectively. Fujifilm Holdings saw its shares soar 8.73% following news of a $3 billion-plus deal between its pharmaceutical unit and U.S. drugmaker Regeneron

Cautious Optimism Ahead of U.S.-Japan Talks

The market’s optimism also followed gains on Wall Street overnight, where both the Nasdaq and Dow Jones rose by more than 2.7%, fueled by upbeat corporate earnings and signs of a potential de-escalation in the U.S.-China trade dispute

On the currency front, the Japanese yen weakened to 141.76 against the U.S. dollar after hitting a seven-month high of 139.885 in the previous session. Investors are now closely watching an upcoming meeting in Washington between Japan’s Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent, where currency issues, interest rates, and financial coordination are expected to be on the agenda

Despite the recent rally, Japanese markets remain cautious amid ongoing uncertainty surrounding global trade relations and currency volatility. Investors are awaiting further clarity from the upcoming U.S.-Japan talks in the days ahead