Nikkei rallies as Wall Street surge lifts global sentiment
Press Hub UCapital
Share:
Japan’s Nikkei 225 ($NI225) surged 0.9% to 37,396.52, marking its highest closing level in over a week, as strong gains on Wall Street fueled risk appetite. The broader Topix index ($TOPIX) rose 1.2% to 2,748.12, reflecting a broad-based rebound across Japanese equities.
The rally was driven by investor bargain-hunting, following a volatile week in U.S. markets. Tech megacaps led the recovery on Wall Street, providing a boost to Japan’s semiconductor sector, with Tokyo Electron ($8035) gaining 2.2% and Advantest ($6857) rising 2.7%.
Additionally, Mitsubishi Heavy Industries ($7011) soared 12.2%, leading gains in heavy machinery stocks, as speculation grows over Japan’s potential increase in defense spending. Kawasaki Heavy Industries ($7012) jumped 6%, while IHI Corp ($7013) surged nearly 10%.
AI and tech-related stocks also participated in the rally, with SoftBank Group ($9984) rising 1.8%, Sony Group ($6758) up 2%, and TDK Corp ($6762) climbing 2.8%. However, Fast Retailing ($9983), the owner of Uniqlo, ended 0.5% lower, failing to sustain early gains.
While investor sentiment has improved, markets remain cautious ahead of the U.S. retail sales report, which could provide further insight into consumer spending trends and economic growth prospects. With 187 out of 225 Nikkei constituents advancing, market momentum remains positive, though external risks, including trade policy and global demand trends, will shape the next move for Japanese equities.
The rally was driven by investor bargain-hunting, following a volatile week in U.S. markets. Tech megacaps led the recovery on Wall Street, providing a boost to Japan’s semiconductor sector, with Tokyo Electron ($8035) gaining 2.2% and Advantest ($6857) rising 2.7%.
Additionally, Mitsubishi Heavy Industries ($7011) soared 12.2%, leading gains in heavy machinery stocks, as speculation grows over Japan’s potential increase in defense spending. Kawasaki Heavy Industries ($7012) jumped 6%, while IHI Corp ($7013) surged nearly 10%.
AI and tech-related stocks also participated in the rally, with SoftBank Group ($9984) rising 1.8%, Sony Group ($6758) up 2%, and TDK Corp ($6762) climbing 2.8%. However, Fast Retailing ($9983), the owner of Uniqlo, ended 0.5% lower, failing to sustain early gains.
While investor sentiment has improved, markets remain cautious ahead of the U.S. retail sales report, which could provide further insight into consumer spending trends and economic growth prospects. With 187 out of 225 Nikkei constituents advancing, market momentum remains positive, though external risks, including trade policy and global demand trends, will shape the next move for Japanese equities.