Japan’s Nikkei 225 index surged above the 43,000-point mark for the first time on Wednesday, August 13, 2025, tracking a rally in U.S. stocks that were fueled by positive economic news. The benchmark index rose by 1.3% to close at an all-time high of 43,274.67, continuing a strong multi-day rally.
The surge was largely driven by upbeat sentiment from the United States. New U.S. inflation data showed a lower-than-expected impact from President Donald Trump’s tariffs, easing concerns about rising prices and boosting investor confidence in the U.S. economy. This led to hopes of an earlier-than-expected interest rate cut by the Federal Reserve, which would provide a tailwind for the stock market. Both the S&P 500 and Nasdaq finished at fresh records on Tuesday.
Investors were also cheered by President Trump’s decision to extend a trade truce with China for another 90 days, averting a potential escalation of tariffs that could have rattled global markets. This pause has been largely expected but has still provided a sense of stability, prompting investors to re-enter riskier assets like stocks.
This positive momentum was reinforced by a weakening yen, which makes Japanese exports more competitive and supports corporate earnings. The Nikkei’s record run, which has seen it gain more than 2,400 points in just five trading days, has been a significant development in global financial markets. While some analysts caution that the market may be due for a pause, the current data and geopolitical climate are fueling continued optimism.
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