Japan's Stocks, Yen and Yields Remain Steady as BoJ Reiterates Cautious Outlook

Akira Ito
25 Jun, 2025
Tokyo

Japanese indexes edged up higher amid heightened geopolitical uncertainty and fragile peace in the Middle East. 

The Nikkei 225 Stock Average edged up 0.2%, and the broader Topix decreased 0.1%, and crude oil prices lacked direction after falling more than 10% in the previous two sessions. 

Investors welcomed the temporary truce between Iran and Israel, and the threat to global crude oil supply through the Strait of Hormuz dissipated for now. 

Iran and Israel halted air strikes after 12 days of war amid mounting casualties on both sides, as Israel, despite its military superiority, failed to topple Iran's regime. 

Moreover, Israel's vaunted "Iron Dome" struggled to cope with a barrage of ballistic missiles and drone attacks, and military planners underestimated Iran's military capabilities despite the killing of top leaders.

The Japanese yen traded around 145 against the U.S. dollar, and the yield on a 10-year Japanese government bond held firm at 1.4% after the Bank of Japan's latest Summary of Opinions reiterated its cautious approach to policy normalization.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.2% to 38,862.33, and the broader Topix declined 0.1% to 2,777.34. 

Aeon Co. Ltd. declined 2.5% to ¥4,281.0, Fast Retailing Co. Ltd. decreased 0.5% to ¥46,650.0, Takashimaya Co. Ltd. fell 1.1% to ¥1,070.0, and Seven & I Holdings Ltd. inched lower 0.1% to ¥2,274.0. 

Nippon Yusen KK decreased 0.6% to ¥4,991.0, Mitsui O.S.K. Lines Ltd. edged higher 0.2% to ¥4,738.0, and Kawasaki Kisen Kaisha Ltd. inched higher 0.05% to ¥2,014.0. 

IHI Corp. decreased 0.9% to ¥15,255.0, Kawasaki Heavy Industries Ltd. edged up 0.7% to ¥10,520.0, and Mitsubishi Heavy Industries Ltd. dropped 0.5% to ¥3,431.0.