Nikkei 225 Holds Steady Amid Weakened Economic Growth

The Nikkei 225 Index held steady at its highest level since July 10, despite Japan's economic growth slowing to 1.1% in the second quarter, missing expectations of 2%. The economy was weighed down by soft domestic demand and higher commodity prices due to the Middle East conflict.

The Japanese yen staged a cautious rebound as investors waited for the Bank of Japan's response to the weak GDP data. A stronger yen can hurt importers, but the market setup remains bullish, with key constituents like SoftBank and Kioxia Holdings leading the charge.

SoftBank has jumped 30% this year due to its AI investments paying off, while Kioxia Holdings has surged 418% this year. Tokyo Electron and Advantest have also been among the top gainers. The Nikkei 225 Index is technically bullish, having moved above a descending channel and supported by the 50-day Exponential Moving Average.