Japan's Nikkei 225 index achieved an all-time high on August 12, 2025, closing at 42,718.17, marking a 2.15% increase for the day. The index reached an intraday peak of 42,999.71. This surge is attributed to strong performance in the technology sector and a more positive outlook on international trade relations. The Topix index also hit a record high, indicating broad market strength.
Major technology and semiconductor firms led the gains. SoftBank Group saw its stock price reach a historic high, rising by 6.9%, reportedly due to plans for a potential U.S. listing of its payments app, PayPay, which could raise over $2 billion in the final quarter of the year. Investment banks Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley are reportedly managing the process. Semiconductor testing equipment manufacturers Advantest and Lasertec also experienced significant gains, with Advantest's performance linked to the increasing demand for advanced semiconductor testing solutions driven by AI, and Lasertec's tied to advanced chip manufacturing equipment demand.
Investor confidence was bolstered by developments in trade policy, specifically reports that Washington would amend an executive order to remove overlapping tariffs on Japanese goods, easing concerns for export-driven sectors. A weaker yen also contributed to a more favorable environment for Japanese companies by enhancing export competitiveness. Despite a potential peak in foreign investment flows, with overseas investors becoming net sellers for the first time in 16 weeks ending August 1, overall market sentiment remains positive, supported by strong corporate earnings and favorable trade developments. The Nikkei's performance this year, up nearly 18% over the past year, signifies a substantial recovery and growth trajectory.