Japanese Shares Climb on Tech Strength

The Nikkei 225 Index jumped 2.2% to above 71,600, while the broader Topix Index gained 1.2% to 4,042 on Wednesday, marking a third straight session of gains as Japanese equities tracked a technology-led rally on Wall Street overnight. Chipmakers and AI-related stocks paced the advance as the recent selloff in the technology sector continued to fade, with strong performances from Kioxia Holdings (2.4%), Tokyo Electron (4.9%), Taiyo Yuden (11.1%), SoftBank Group (4.6%) and Advantest (4.9%). On the economic front, business confidence among Japan’s large manufacturers rose to its highest level since 2018, reflecting the economy’s resilience despite the energy shock caused by the Middle East conflict. Meanwhile, investors continued to monitor the ongoing US-Iran peace talks in Qatar, hoping for progress toward a lasting ceasefire agreement.

The Nikkei 225 Index climbed 0.86% to close at 70,062, while the broader Topix Index added 0.32% to 3,995 on Tuesday, extending the previous session’s gains as technology and artificial intelligence-related stocks rebounded. Japanese companies continued to benefit from optimism surrounding the global expansion of AI, supported by their strategic positioning and investments in the sector. Equities also drew support from the yen’s slide to a four-decade low, which improved earnings prospects for the country's export-driven firms. Meanwhile, investors monitored the resumption of US-Iran peace talks in Doha, Qatar, with lower oil prices helping to ease inflation concerns in Japan. Among the top performers were Taiyo Yuden (+8.3%), Tokyo Electron (+3.3%), and Fujikura (+6.0%). The Nikkei and Topix also posted gains for a third consecutive month, rising 5.3% and 1.0%, respectively, in June.

The Nikkei 225 Index gained 1030 points or 1.48 percent on Tuesday to close at 70498 points. Gains were led by Taiyo Yuden (9.40%), Murata Manufacturing (6.98%) and Screen Holdings (6.68%).