tokyo stocks soar: nikkei leaps after tariff relief
tokyo, Thursday, 10 April 2025.
tokyo’s nikkei average surged by 9.13% today, a historic leap of 2,894.97 yen. this ranks as the second-largest gain ever. the catalyst was the u.s. government’s unexpected 90-day suspension of additional tariffs. this suspension applies to japan and other regions. semiconductor stocks are expected to be significantly impacted. the move dramatically shifted investor sentiment after recent market volatility.
Market overview
The tokyo stock exchange experienced a broad rally, with mainstay stocks rising across the board [1]. Index futures buying by overseas short-term investors also helped push the nikkei average higher throughout the day [1]. The breadth of the advance is reflected in the tokyo stock price index (topix), which also saw a substantial rebound, closing up 8.09% or 190.07 points, at 2539.40 [1]. The jpx prime 150 index similarly jumped, ending the day up 8.79%, gaining 90.33 points to close at 1118.26 [1].
Key stocks and sectors
Notable gainers included stocks with high values such as fast retailing and softbank group [1]. Semiconductor-related stocks also saw rapid increases, with tokyo electron and advantest among the leaders [1]. Automobile stocks like toyota and honda were also bought amid expectations of improved export profitability due to the rapid depreciation of the yen [1]. Minebea, which announced a tob for shibaura electronics, a major temperature sensor manufacturer, also rose sharply [1]. Nintendo and asahi kasei also extended gains in the afternoon [1].
Trading volumes and prime market activity
Trading activity on the tokyo stock exchange (tse) prime market was robust, with an estimated turnover of 5.5949 trillion yen and a trading volume of 2.749 billion shares [1]. Advancing issues on the tse prime market numbered 1,623, while declining issues were limited to just 8, with 6 issues remaining unchanged [1]. The jpx-nikkei index 400 also experienced a significant rebound, closing up 8.08%, a gain of 1724.62 points, to reach 23,058.23 [2].
Expert opinions and market outlook
Market analysts suggest that speculative buying in stock index futures and short-covering by those who had bet against the market drove today’s sharp rise in the nikkei [1]. Concerns persist regarding president trump’s fluctuating policy decisions, with some suggesting that investor sentiment has not improved as much as the stock price increase suggests [1]. Naoki fujiwara, senior fund manager at shinkin asset management, noted the strong uncertainty about the global economic outlook, saying, ‘it is difficult to determine fair value, and many institutional investors will likely remain on the sidelines’ [1].
Earlier market turbulence
The nikkei’s surge follows a period of significant volatility [3]. On april 9, the nikkei average fell by 1,298.55 yen to close at 31,714.03 yen, reflecting concerns about the impact of reciprocal tariffs [3]. The tokyo stock price index (topix) also decreased, falling 82.69 points to 2,349.33 [3]. This volatility is partly attributed to investor apprehension regarding potential retaliatory measures from china in response to the imposition of tariffs, creating an unstable market environment [3].