The Nikkei index rises, diminishing worries about the US economy and prompting investors to continue buying.

date
07/08/2025
On Wednesday, the Japanese Nikkei index rose. Worries about the US economy eased, prompting investors to continue buying cheaply valued stocks this week after a big drop earlier. The Nikkei 225 index closed up 0.6% at 40,794.86 points. The broader Topix index jumped 1% to 2,966.57 points. Naoki Fujiwara, senior fund manager at Shinkin Asset Management, said, "Investors are buying stocks because the previous day's rise in the Nikkei index was not enough to offset Monday's decline." Concerns about the US economy and trade worsened, while speculation about potential political unrest at home increased, leading to the biggest drop in the Japanese stock market in two months on Monday. "Today, the drag on the index is due to the decline in heavyweight stocks," Fujiwara said. Tokyo Electron fell 3.8%, dragging down the Nikkei index the most. A Mizuho Securities analyst downgraded the rating of this chip manufacturing equipment maker from "buy" to "neutral." Mitsubishi Heavy Industries rose 4.8% for the second consecutive trading day after the company reached a milestone agreement to build the next generation of warships for Australia.
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