Japan’s Nikkei Hits Record High as Yen Slides Toward Its 1986 Low

Japan’s Nikkei 225 recorded a new all-time high on Monday as the yen continued to slide.

The currency softened to 161.7 per dollar, just short of 161.96. A break past that mark would leave the yen at its weakest in nearly four decades and intensify pressure on Tokyo to respond.

Japan’s Nikkei Tops 72,000

Nikkei 225 closed at a record 72,353.96 on Monday, climbing 1.55% after hitting an intraday high of 72,831. The Topix rose 1.24% to 4,095.05.

The advance added more than ¥25.74 trillion ($156 billion) to the index’s market value, according to analyst Bull Theory. The rally extended across Asian equities, with South Korea’s KOSPI up 0.7% and China’s SSE Composite Index climbing 1.78%.

The advance followed constructive US-Iran talks in Switzerland, where technical negotiations will continue this week. Mediators Qatar and Pakistan confirmed progress, despite US President Donald Trump’s threats of military strikes.

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Yen Nears 40-Year Low

While stocks climb, Japan’s currency is heading the other way. The yen weakened to 161.7 per dollar, and a move past 161.96 would push it to its lowest point since 1986.

The decline persists despite Tokyo’s efforts to halt it. Japan spent a record ¥11.73 trillion ($73.4 billion) supporting the yen through late May.

Separately, the Finance Ministry’s reserve data showed the country’s foreign securities holdings fell by $75.6 billion from April to the end of May. That drop roughly matches the scale of Japan’s latest intervention to defend the currency.

The Bank of Japan has also tightened policy, lifting its benchmark rate to 1% from 0.75%, the highest since 1995. Higher rates typically support a currency, yet the yen’s weakness has continued regardless.

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