Nikkei 225 Stands Firm as Japan's Economic Growth Slows
The Nikkei 225 Index remained steady at its highest level since July 10, despite Japan's GDP growth slowing down to 1.1% in the second quarter, missing the expected 2% growth.
Soft domestic demand offset soaring exports and the impact of the US-Iran war, contributing to the slowdown.
The Japanese economy expanded by 2.1% in the first quarter of this year, according to a recent note from the Bank of Japan, which predicted that the economy will grow by 0.6% this year from 0.5% last year.
Japan's inflation remains elevated due to higher crude oil prices, while the yen has retreated to its lowest level in years.
The AI boom is driving growth in Japanese stocks, with SoftBank stock jumping 30% this year and Kioxia Holdings rising 418% this year after a 170% surge in the last six months.