Nikkei on track for record 36% Q2 gain as yen hits 40-year low

Asian equities close a historic quarter with Japan leading the charge, while currency weakness complicates the outlook for importers and consumers.

By Handelsavisen Newsroom · Automated 2026-06-30 05:34 UTC · 1 min read

Asian equity markets are wrapping up a record-breaking second quarter, with Japan’s Nikkei 225 poised to finish with a gain exceeding 36%.

The benchmark index has been the standout performer in the region, driving broad-based strength across Asian equities as investor sentiment remains buoyant despite mixed closing trends on Tuesday.

The rally comes as the Japanese yen falls to a 40-year low against the US dollar.

While the weak currency has boosted the competitiveness of Japanese exporters and supported corporate earnings, it is simultaneously weighing on consumer spending and increasing costs for imported energy and raw materials.

This divergence creates a complex backdrop for the final trading days of the quarter.

The broad-based strength across Asian equity markets reflects a shift in global capital flows, with the US dollar’s strength playing a pivotal role in shaping regional performance.