The Nikkei 225 Index rose 0.84% to close at 40,487 on Monday, capping a 6.64% gain for June—its strongest monthly performance since February 2024. The benchmark also hit an 11-month high, tracking a global equity rally led by Wall Street, where major US indexes reached record levels amid easing tariff risks and increased expectations of deeper Federal Reserve rate cuts.
Despite the bullish sentiment, trade tensions between Japan and the US remain unresolved. The 25% US tariff on Japanese car imports continues to be a major sticking point in ongoing negotiations, with no clear progress reported. Domestically, Japan’s industrial production data for May fell short of expectations, but investor sentiment stayed resilient. Technology stocks led the advance, with strong performances from Disco (+1.4%), Advantest (+0.5%), Tokyo Electron (+0.3%), SoftBank Group (+3.8%), and Metaplanet (+10.5%).
