Foreign investors continued buying Japanese equities for an eighth consecutive week through May 23, supported by easing oil prices and growing optimism around artificial intelligence-related shares. According to data released by Japan's Ministry of Finance on Thursday, foreign investors purchased a net 1.08 trillion yen ($6.77 billion) worth of Japanese stocks during the week ended May 23.
Japan's Nikkei 225 climbed to a record high on Wednesday, as a rally in semiconductor shares outweighed weakness in banks and real estate stocks. The benchmark index rose 1.25% to 65,811.78 as of 0147 GMT, after touching an intraday high of 66,428.81.
Japan is set to begin talks with South American trade bloc Mercosur on an economic partnership to seek alternative oil sources, critical minerals and lower auto tariffs, the Nikkei newspaper reported on Tuesday.
Japan's exports grew at a faster-than-expected pace in April, as a weak yen and resilient global demand offset the negative impact of Middle East tensions.
GDP rose by 2.1% on an annualised basis, compared with Reuters-polled analysts' average estimate of 1.7%, and against the 1.3% in the previous quarter. On a quarter-on-quarter basis, the economy expanded 0.5%, compared with estimates of 0.4%, and improving from the 0.3% expansion at the end of 2025.
Japan equities are riding a historic surge, with the Nikkei 225 topping 62,000 for the first time. While the S&P 500 and Nasdaq continue to notch records, Japan is carving out its own bull market, driven by AI-fueled tech gains, structural corporate reforms, and a transformative era of economic policy.
Asian markets opened Thursday with a powerful relief bid, as investors leaned into hopes that tensions in the Middle East may ease enough to keep the Strait of Hormuz open. Japan set the tone, with the Nikkei 225 vaulting through 62,000 for the first time, while broader regional equities also pushed higher.
The yen consolidated against other G-10 and Asian currencies on the first day of trading in Tokyo following Japan's long Golden Week holidays.
Concerns about high oil prices are adding to inflation fears in Japan, as the BOJ just moved to rescue the yen from a roughly 40-year low.
Japanese Prime Minister Sanae Takaichi said on Monday she did not see a need "for now" to compile a supplementary budget aimed at cushioning the economic blow from the Middle East conflict.
Nikkei 225 hits 59,000 as BOJ dovish bets and a tech surge ignite Japan stocks - here's why ETFs like EWJ are in focus now.
Japan's Nikkei 225 hits a record as Sanae Takaichi's election win fuels stimulus hopes, lifting investor appetite for Japanese ETFs like EWJ.