📈 Japanese Stocks Rise as Powell’s Dovish Comments Boost Rate-Cut Hopes

Japanese shares closed higher on Monday, supported by U.S. Federal Reserve Chair Jerome Powell’s dovish speech, which increased optimism for a potential September rate cut. The upbeat sentiment pushed Tokyo’s Nikkei 225 and Topix Index higher, though concerns over a strengthening yen capped further gains.

The Topix Index rose 0.1%, while the Nikkei 225 climbed 0.4%, briefly surpassing 43,000 points in early trade before settling at 42,807.82.

According to VanEck’s Anna Wu, Powell’s comments “removed the block for a September rate cut and boosted global risk sentiment,” sparking a rally in global equities. On Wall Street, the Dow Jones Industrial Average hit a record high, while the S&P 500 saw its best gain since May.

However, a 1% jump in the yen against the U.S. dollar on Friday kept Tokyo’s enthusiasm in check. Mizuho Securities’ Yutaka Miura noted that investors are cautious, as valuations appear stretched.

📊 Japanese Stock Market Overview (Aug 25, 2025)

Tech stocks like Taiyo Yuden Co. and Disco Corp could see capital inflows if the Fed eases rates, according to KCM Trade’s Tim Waterer.

With the Nikkei 225’s recent rally to near-record highs, analysts predict investors may lock in profits if valuations continue climbing.