Japanese Stocks Rally as Weak Yen Lifts Export Outlook

Japanese equities advanced sharply on Monday, recovering losses from the previous week as a weaker yen boosted sentiment toward the country’s export-driven economy.

The Nikkei 225 climbed more than 1% to trade above 54,000, while the broader Topix rose 0.9% to 3,598, supported by currency-driven gains across export-oriented sectors.

The yen weakened by more than 1% on Friday after the US dollar strengthened following the announcement that Donald Trump nominated Kevin Warsh as the next chairman of the Federal Reserve. Markets interpreted Warsh’s preference for a smaller central bank balance sheet as supportive of a firmer dollar, putting additional pressure on the Japanese currency.

Over the weekend, Japanese Prime Minister Sanae Takaichi said that a weaker yen could represent a significant opportunity for export-focused industries and provide a cushion for the automotive sector amid rising US trade tariffs.

Automakers led gains, with Toyota shares climbing 3.3%, Honda rising 1.8%, and Nissan adding 2%.

Other heavyweight stocks also posted solid advances. Semiconductor equipment maker Advantest gained 1.3%, electronics manufacturer Fujikura surged 3.8%, while financial giant Mitsubishi UFJ rose 1.4%.

Market analysts said Japanese equities could remain sensitive to currency movements in the near term, with export performance and global monetary policy developments expected to play a central role in shaping investor sentiment.