Nikkei jumps as us rate cut hopes ignite semiconductor rally
tokyo, Thursday, 18 September 2025.
Tokyo’s stock market experienced a substantial boost. The Nikkei average temporarily increased by over 600 yen. This surge is attributed to renewed optimism after the us federal reserve’s interest rate cut decision. Semiconductor stocks, such as Disco and Tokyo Electron, spearheaded these gains. These stocks saw increased buyer interest. A weaker yen, trading near 146 against the dollar, further bolstered the market as investor risk appetite grew. The trading volume of Disco and Tokyo Electron neared 200 billion yen each.
Market overview
The Nikkei’s morning close showed a rise of 487 yen, a 1.09% increase, reaching 45,277 [2]. This surge marks the third consecutive day the index has surpassed the 45,000 level during trading [2]. Investor confidence appears to be growing following the us federal open market committee (fomc) meeting, which has spurred buying in semiconductor-related stocks that had already been trending upward [2]. Large investors, both domestic and international, engaged in basket trades, totaling approximately 79.1 billion yen outside of the trading session on the tokyo stock exchange [1].
Semiconductor stock surge
Disco and tokyo electron experienced gains exceeding 6% during the afternoon trading session, driven by substantial buying activity [1]. These two stocks alone accounted for nearly 200 billion yen each in trading value, ranking them as the top two most actively traded stocks on the tokyo stock exchange prime market [1]. Other stocks experiencing gains included mitsukoshi isetan, mitsubishi corp, and fast retailing [1]. Conversely, socionext and subaru saw declines [1]. Overall trading value on the tokyo prime market reached approximately 2.628 trillion yen, with a volume of 946.04 million shares [1].
Bond market reaction
The positive sentiment in the equity market is impacting the bond market. In the afternoon domestic bond market, futures prices are trending downwards [3]. The december futures contract started trading at 136.52 yen, a decrease of 0.13 yen from the previous day [3]. The rise in the nikkei average by over 600 yen has increased investors’ risk appetite, leading to selling of bonds, which are considered safer assets [3]. The yield on the newly issued 10-year government bond is trading at 1.600%, an increase of 0.010% (price decrease) from the previous day [3].