nikkei average climbs: semiconductor stocks surge after us rally

2025-03-17 general

tokyo, Monday, 17 March 2025.
the tokyo stock exchange saw the nikkei average rise today. semiconductor stocks, such as tokyo electron, led the gains. this surge follows positive momentum from us markets. the nikkei’s rise occurred even as the yen weakened against the dollar due to real demand selling. earlier today, the nikkei temporarily jumped by more than 400 points. the market is reacting to the previous week’s strong performance in us stocks. investors are particularly focused on semiconductor-related companies.

market overview

The Nikkei average began the day with a continued rise on the tokyo stock exchange [1]. The index is currently hovering in the lower 37,400 range, approximately ¥360 higher than the close of the previous trading session [1]. This upward trend is largely attributed to the strong gains made by us stocks the prior week, spurring significant buying interest, especially in high-value semiconductor stocks [1]. Market analysts also note that continuous purchases of stock index futures, potentially by overseas speculative investors, are further bolstering the Nikkei’s ascent [1].

us market influence

The robust performance of us markets is a key driver behind the nikkei’s positive movement [1]. On march 14, 2025, the dow jones industrial average rebounded after a five-day slump, closing up by 674 dollars, a 1.625 1.65% increase, to reach 41,488 dollars [1]. This recovery spurred buying activity aimed at capitalizing on the market’s self-correcting bounce [1]. Similarly, the NASDAQ and the philadelphia semiconductor index (sox), which is heavily weighted towards tech stocks, also saw substantial gains, influencing buying trends in the tokyo market, particularly for semiconductor-related stocks like tokyo electron and advantest [1].

sector performance

While semiconductor stocks are leading the charge, other sectors also show varied performance [1]. Defense-related stocks, including mitsubishi heavy industries and ihi, alongside sony group are experiencing gains [1]. On the other hand, department stores such as mitsukoshi isetan and j. front retailing, along with nitori holdings are facing declines [1]. These movements highlight a mixed market response, with specific sectors benefiting more from the current conditions than others [alert! ‘The reasons for these specific sector movements are not detailed in the source.’]

analyst perspective

Market analysts suggest that the nikkei’s upward momentum may continue, driven by increased investment capacity from overseas speculative investors [4]. These investors are expected to sustain buying pressure on stock index futures, which could lead to further gains throughout the trading day [4]. Projections indicate a potential rise to the 37,500 range, representing an increase of approximately ¥500 from the previous day’s closing price of ¥37,053 [3][4]. Investors should monitor these trends closely to make informed decisions [GPT].

olympic gold medals and stock market trends

Interestingly, historical data suggests a correlation between japan’s performance in overseas olympic games and the nikkei average [7]. Economist akiyoshi takumori notes that in years when japan secures 10 or more gold medals at overseas olympics, the nikkei average tends to rise during the games [7]. The 2024 paris olympics saw japan achieving a record number of gold medals, potentially contributing to positive investor sentiment and market performance [7]. This psychological boost from national success can influence investor behavior [7].

Bronnen

semiconductors stock market