Japanese Shares Rise in Post-Holiday Trade

The Nikkei 225 Index gained 571 points or 1.00 percent on Tuesday to close at 57396 points. Gains were led by Furukawa Electric (15.83%), Fujikura (11.16%) and Murata Manufacturing (9.06%).

The Nikkei 225 Index advanced 0.87% to close at 57,321 on Tuesday, recovering losses from the last session as Japanese markets reopened following a holiday-extended weekend. Domestic equities shrugged off an overnight selloff on Wall Street driven by mounting concerns over AI-related disruptions, lingering uncertainty surrounding President Donald Trump’s tariff plans and escalating tensions between the US and Iran. The US Supreme Court struck down Trump’s emergency tariffs on Friday, injecting fresh uncertainty into global markets. Tokyo urged Washington to clarify that the ruling would not harm Japanese firms and reaffirmed its commitment to maintaining the trade agreement with the US. Tech and AI-related shares led the rebound, with solid gains from Kioxia Holdings (8.3%), Fujikura (10%) and Advantest (4.5%). Meanwhile, defense stocks came under pressure after China added 20 Japanese entities to an export control list, with Mitsubishi Heavy Industries losing 3.1%.

The Nikkei 225 Index fell 1.12% to close at 56,826, while the broader Topix Index declined 1.13% to 3,808 on Friday, snapping a two-day rally as escalating US-Iran tensions dampened risk appetite. Trump said Iran had no more than 15 days to reach a deal over its nuclear program or face consequences. Investors also turned cautious ahead of key US economic releases that could shape expectations for Fed policy. On the domestic front, data showed Japan’s headline and core inflation eased in January, reflecting government efforts to mitigate cost-of-living pressures. Technology and banking shares led the selloff, with notable declines in Advantest (-2%), Tokyo Electron (-1.5%) and Mitsubishi UFJ (-2.2%). In corporate developments, Sumitomo Pharma plunged 15.6%, likely on profit-taking after securing conditional approval for its regenerative therapy. Both benchmark indexes were on track to end the week broadly unchanged. Japanese markets will be closed on Monday for a holiday.