Nikkei 225 Holds Steady as Japan GDP Growth Slows Amid Cautious Yen Rebound
The Nikkei 225 Index held steady at its highest level since July 10, despite weak Japan GDP data showing a 1.1% growth in the second quarter, missing expectations of 2%. The economy's slowdown was attributed to soft domestic demand offsetting soaring exports and the impact of the US-Iran war.
The Japanese yen staged a cautious rebound, with the USD/JPY pair pulling back to 159, below last week's high of 159.6. Traders are watching for potential intervention by the Bank of Japan (BoJ), which could support the yen and hurt importers.
Japan stocks have benefited from the ongoing AI boom, with SoftBank stock jumping 30% this year due to its AI investments paying off. Kioxia Holdings, a top manufacturer of memory products, has seen its stock rise by 418% this year and 170% in the last six months.
The Nikkei 225 Index is technically bullish, above the descending channel and supported by the 50-day EMA. The Relative Strength Index (RSI) is rising, indicating a potential target of ~72,870 for the index.