Japan's TOPIX Closed at New Record High, Yen Extended Weekly Losses as Bears Remain In Charge

Akira Ito
14 Aug, 2026
Tokyo

Stocks in Japan extended a weekly rally, and the yen erased roughly half of gains made in late July and early August. 

The Nikkei 225 Stock Average edged up 0.3%, the broader TOPIX inched up 0.4%, and the Japanese yen weakened to 159.31 against the U.S. dollar. 

The yen resumed its downward slide and extended this week's losses to 1%, following the lack of additional interventions in the currency markets.  

Speculators continued to bet against the embattled currency, which remained under pressure from long-term fundamentals. 

The persistent and wide rate differentials between the U.S. and Japan, rising fiscal deficit, and lagging response from the Bank of Japan are emboldening speculators to bet against the currency. 

With more than $1.1 trillion in holdings of the U.S. Treasury, Japan has more than enough resources to ward off future currency attacks, but a half-hearted approach to currency's downward adjustments could exacerbate the problem. 

The Bank of Japan's rate policy has still kept real rates in the negative territory, despite a surge in inflation driven by a weaker yen and a surge in imported energy prices. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 68,539.12, and the broader TOPIX advanced 0.4% to 4,192.31. 

For the week, the Nikkei 225 increased 4.1%, and the broader TOPIX advanced 3.2%. 

AI- and semiconductor-linked stocks led gainers in Tokyo following Cisco Systems reporting solid quarterly results. 

Kioxia Holdings added 3.8% to ¥53,770.0, Tokyo Electron decreased 0.4%, Advantest Corp. increased 1.8% to ¥36,580.0, Ibiden C0 decreased 4.7% to ¥20,535.0, and Taiyo Yuden Co. edged up 0.8% to ¥11,010.0.