Japan Indexes Extended 3-Day Rally, Sony and Toyota Motor In Focus

Akira Ito
07 Aug, 2025
Tokyo

Japan's stock market indexes advanced for the third consecutive session on Thursday, as investors reacted to domestic corporate news. 

The Nikkei 225 Stock Average increased 0.5%, and the broader Topix advanced 0.6%, as investors worry that the U.S. trade policy will negatively impact corporate earnings in the second half.

The Bank of Japan is more likely to raise rates in the near future, but policymakers are taking a wait-and-see approach in assessing the impact of U.S. tariffs on Japan's exports.

Pharmaceutical companies are bracing for 250% U.S. tariffs, and automobile makers are likely to face higher tariffs despite the 25% level agreed upon during the latest negotiations between Japan and the U.S. 

Moreover, China is likely to face additional tariffs of 25%, mirroring the similar duties on India, after the U.S. president slapped secondary tariffs on countries importing Russian oil.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.5% to 40,995.93, and the broader Topix index added 0.6% to 2,983.61.

Toyota Motor Corp. declined 1.4% to ¥2,680.0, and the vehicle maker reported a 37% decline in net profit in the fiscal first quarter ending in June. 

The company lowered its annual operating profit to 3.2 trillion yen, or $21.7 billion, from the previous estimate of 3.8 trillion yen. 

Sony Group Corporation increased 4.2% to ¥3,860.0, after the diversified company reported a 36% increase in profit in the latest quarter. 

Revenue increased 2.2% to 2.62 trillion yen from 2.56 trillion yen, net income surged 22.6% to 262.8 billion yen from 214.3 billion yen, and diluted earnings per share rose to 42.84 yen from 34.37 a year ago. 

The company guided fiscal year revenue to decline 2.8% to 11.7 trillion yen, operating income to increase 4.2% to 1.33 trillion yen, and net income attributable to shareholders to fall 9.1% to 970 billion yen.