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

Japan’s Nikkei 225 hit a fresh all-time high, closing at 72,353.96 (+1.55%) and extending its rally as the yen weakened toward a 40-year low. The currency fell to 161.7 per dollar, near the 161.96 level that would mark its weakest since 1986. The move highlights a powerful divergence: Japanese equities are benefiting from a weaker currency and broader Asian risk appetite, while the yen remains under pressure despite aggressive government intervention and tighter Bank of Japan policy. Tokyo has spent a record ¥11.73 trillion defending the yen through May, yet the slide continues. The article suggests the market is pricing in continued yen weakness and strong equity momentum, which could further support exporters and Japanese stocks if the currency stays depressed.