Stock Market in Japan Could Maintain Victory Run

The Nikkei Stock Average finished modestly higher on Thursday, with gains from the financial sector, technology stocks, and automobile producers. For the day, the Nikkei improved 308.52 points or 0.73 percent to close at 42,828.79.

The Japan stock market has moved higher in two consecutive sessions, collecting more than 430 points or 1 percent. Notable performers included Softbank Group, which soared 3.21 percent, Mitsubishi UFJ Financial, which collected 0.80 percent, Mizuho Financial, which rallied 1.83 percent, and Sumitomo Mitsui Financial, which was down 0.10 percent. However, Mitsubishi Electric eased 0.14 percent, and Panasonic Holdings dipped 0.20 percent.

The lead from Wall Street suggests mild upside as the major averages opened mixed but tracked steadily higher, ending near session highs. The Dow gained 71.67 points or 0.16 percent, the NASDAQ climbed 115.02 points or 0.53 percent, and the S&P 500 rose 20.46 points or 0.32 percent.

Investors are looking ahead to the release of the Commerce Department's report on personal income and spending in July, which includes the Federal Reserve's preferred readings on consumer price inflation. The U.S. economy grew more than estimated in the second quarter of 2025, and crude oil prices moved higher on Thursday, with West Texas Intermediate crude for October delivery up $0.42 or 0.65 percent at $64.57 per barrel.

In domestic news, the household confidence index in Japan is expected to see a score of 43.2, up from 33.7 in July. Retail sales in Japan are called higher by an annual 1.6 percent, easing from 2.0 percent a month earlier. Industrial production in Japan is expected to slip 1.2 percent on month after rising 2.1 percent in June. Housing starts in Japan are tipped to fall 9.8 percent on year after sinking 15.6 percent in the previous month. The jobs-to-applicant ratio in Japan is tipped to rise to 1.23 from 1.22. The jobless rate in Japan is expected to hold steady at 2.5 percent.

Japan is scheduled to release data today, including July figures for unemployment, industrial production, retail sales, housing starts, construction orders, August data for household confidence, and Tokyo inflation. The Nikkei 225 is currently just beneath the 42,830-point plateau.

In the automotive sector, Nissan Motor retreated 1.32 percent on Thursday, while Mazda Motor added 0.70 percent, Toyota Motor gained 0.50 percent, Honda Motor rose 0.27 percent, and Hitachi jumped 1.78 percent. Unfortunately, the search results do not provide specific information about which Japanese companies had the highest trading volume in the Nikkei 225 on Thursday or their percentage gains.

The global forecast for the Asian markets suggests little movement ahead of key U.S. inflation data. First-time claims for U.S. unemployment benefits last week showed a modest decrease. Tokyo inflation, both core and overall, were up 2.9 percent on year in July.