Japanese Yen Jumped to 5-Month High, Export-Driven Stocks Led Gainers In Tokyo

Akira Ito
06 Mar, 2025
Tokyo

Stock market indexes in Tokyo advanced for the second consecutive day amid uncertainty linked to the U.S. trade policy that could start a new global trade war.

The Nikkei 225 stock average gained 0.8%, and the broader TOPIX advanced more than 1%, and the yen strengthened to 148.20 against the U.S. dollar.

The yen strengthened after Bank of Japan Deputy Governor Shinichi Uchida confirmed that the central bank is prepared to raise interest rates if economic indicators meet the forecast and support the action.

Investors widely anticipate the central bank to continue its rate-hike campaign and raise rates after the policy meeting later this month.

Export-driven stocks led the gainers in Tokyo after the White House offered exemptions from tariffs to automobile exports for one month.

Despite the latest tariff relief, investors are worried that Japanese exports to the U.S. are likely to face higher tariffs in the months ahead as the Trump administration looks for ways to bolster government revenue to finance its tax cut to the wealthy.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.8% to 37,704.93, and the broader TOPIX advanced 1.2% to 2,751.41. 

Export-driven stocks led gainers in Tokyo amid a strengthening yen and receding worries of tariffs.

Mitsubishi Heavy Industries soared 10.6% to ¥2,520.50, Hitachi Ltd. advanced 7.5% to ¥3,978.0, Kawasaki Heavy Industries soared 7.5% to ¥9,120.0, and IHI Corp advanced 2.5% to ¥11,430.0.

Seven & I Holdings jumped 6% to ¥2,120.0, and investors hoped that the founding family may be able to resurrect a new buyout offer.

Separately, the company announced a new chief executive officer and a restructuring plan to lower operating costs.

The company plans to list its North American business on a stock exchange as early as 2026, according to local reports.