Nikkei 225 Holds Steady Amid Weak Japan GDP Growth

The Nikkei 225 Index held steady at 68,935 points, its highest level since July 10, despite weak Japan GDP data. The slowdown in economic growth to 1.1% in the second quarter was attributed to soft domestic demand offsetting soaring exports and the impact of the US-Iran war.

The Japanese economy expanded by 2.1% in the first quarter of this year, but the Bank of Japan predicted a 0.6% growth rate for this year, down from 0.5% last year.

A strong yen has been a concern for importers, but the market setup remains 'bulls in control' due to earnings momentum from AI/memory winners like SoftBank, Kioxia Holdings, and Tokyo Electron.