Japanese equites are solidly higher in morning trade. The Topix has hit a record high. Nikkei 225 is up 1.4%.
PM Ishiba's resignation has been greeted with relief by equity markets. The yen has fallen, making Japanese equities cheaper for offshore investors. GBP/JPY is hitting a 12-month high, as is EUR/JPY.
Yen is off to a weak start with the resignation of Japanese Prime Minister Ishiba
Monday open levels, indicative FX prices, 8 September '25. Japan PM Ishiba quit, yen lower
- USD/JPY update, around 148.10. ICYMI, JPY slammed lower after Japan PM Ishiba resigned
- USD/JPY - we got a gap to fill!
The data from Japan earlier was also solid:
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The TOPIX is a broad, market-cap weighted index covering nearly all Prime Market stocks and is widely regarded as the best reflection of Japan’s equity market. By contrast, the Nikkei 225 is a price-weighted index of 225 companies, meaning high-priced shares have an outsized impact, often making it more volatile and less representative.
TOPIX (Tokyo Stock Price Index)
- Market-cap weighted, covering all domestic companies in the TSE Prime Market (~1,800 stocks).
- Broad representation of the Japanese equity market, often seen as the “true” benchmark for Japan.
- Heavily influenced by larger sectors like financials and industrials.
Nikkei 225
- Price-weighted index of 225 selected companies, similar to the Dow Jones in the US.
- More volatile because high-priced stocks (e.g., Fast Retailing, SoftBank) carry disproportionate influence.
- Widely cited in global media despite being less representative of Japan’s overall market.
