Japanese Shares Rise on Tech Gains

The Nikkei 225 Index rose 1% to around 66,760, while the broader Topix Index gained 0.3% to 4,040 on Thursday, with technology stocks leading the advance. Regional semiconductor shares gained amid expectations that robust spending on AI infrastructure will continue to support the sector. Meanwhile, investors kept a close watch on oil prices after Iran-backed Houthi militants said they had targeted two Saudi Arabian tankers in the Red Sea. Attention is also on the country's June consumer inflation report, due on Friday, for further clues about the Bank of Japan's policy outlook. Top performers included Tokyo Electron (2.9%), Advantest (2.8%), Renesas Electronics (3.5%), Murata Manufacturing (4.0%), and Keyence (0.6%). Outside the technology sector, Mizuho Financial climbed 1.3%, while Mitsubishi Electric added 1.7%.

The Nikkei 225 Index slipped 0.18% to close at 66,115 on Wednesday, reversing gains from earlier in the session as the rally in semiconductor stocks lost steam. Investors also turned cautious ahead of earnings from major US technology companies, including Alphabet and Tesla, to gauge the outlook for the sector. Meanwhile, markets continued to monitor rising oil prices as the US carried out strikes on Iranian targets for an 11th consecutive night, while President Donald Trump downplayed the likelihood of near-term talks with Tehran. Among individual stocks, Tokyo Electron (-0.9%), SoftBank Group (-0.8%), and Fast Retailing (-2.8%) posted notable losses, while Kioxia Holdings (5.3%), Taiyo Yuden (6.7%), and Murata Manufacturing (4%) were among the strongest gainers. On the data front, Japan’s trade balance shifted to a deficit in June as import growth outpaced exports.

The Nikkei 225 Index fell 40 points or 0.06 percent on Wednesday to close at 66192 points. Leading the losses are J Front Retailing (-5.51%), Shiseido (-5.33%) and Takashimaya (-4.51%). Top gainers were Mitsui Kinzoku (7.73%), Taiyo Yuden (7.41%) and Resonac Holdings (5.37%).