nikkei soars: softbank's surge and us tech boost fuel tokyo market

2025-08-08 general

tokyo, Friday, 8 August 2025.
tokyo’s stock exchange is riding high. The nikkei average jumped for the fourth day in a row, closing at 41,820.48 yen. Semiconductor stocks and softbank’s impressive earnings drove the surge. Softbank alone pushed the nikkei up by 264 yen. The topix index also broke 3000. This milestone indicates broad market strength. Positive sentiment from us tech stocks and easing tariff concerns are helping the market. The surge points to growing investor confidence.

market performance overview

The Nikkei’s rise of 1.85% reflects a 1.854 increase from the previous day’s close [1][4]. The index even surpassed its year-to-date high from July 24, reaching an intraday peak of 41,826.34 yen [1]. The JPX Nikkei Index 400 also saw gains, climbing for the fourth straight day to a record high of 27,250.99, a rise of 1.09% or 294.17 points [2][3]. Market activity was robust, with the value of shares traded on the Tokyo Stock Exchange’s Prime market reaching approximately 6.7792 trillion yen, involving the exchange of 2.73959 billion shares [1].

key drivers of the nikkei’s ascent

Semiconductor-related stocks experienced significant buying interest, mirroring the gains seen in US tech stocks [1]. Advantest and Tokyo Electron saw renewed buying [1]. SoftBank Group’s strong financial results significantly boosted the Nikkei [1]. The positive sentiment was further supported by eased concerns regarding US tariff policies [1]. This confluence of factors created a favorable environment for investors, driving up stock prices across various sectors [1].

softbank’s pivotal role

SoftBank Group (SBG) stood out with a remarkable 10.3% surge in its stock price following its earnings announcement [1]. This single stock contributed 264 yen to the Nikkei’s overall increase [1]. TBS News reported that Softbank’s strong Q2 results led to a nearly 10% surge in its stock price [8]. This performance underscores the significant impact that major companies can have on the broader market index, influencing investor sentiment and market momentum [1].

sectoral impacts and individual stock movements

The rise was not limited to tech; Fast Retailing and Terumo also saw increased buying [1]. Sony Group and Nintendo also experienced gains [1]. Conversely, pharmaceutical stocks such as Chugai Pharmaceutical and Daiichi Sankyo faced selling pressure [1]. Materials companies like Kuraray and Toray also declined [1]. These individual stock movements reflect sector-specific trends and investor reactions to company-specific news and broader market conditions [1].

analyst perspectives and market dynamics

Despite some companies lowering their earnings forecasts due to the impact of US tariff policies, the overall market continued to rise [1]. Some analysts suggest that the market’s upward trend is driven by supply and demand dynamics [1]. According to Ryuta Otsuka, a strategist at Toyo Securities, trend-following strategies by commodity trading advisors (CTAs) are contributing to the upward momentum by triggering short-covering [1]. This highlights the role of speculative trading and market psychology in driving short-term price movements [1].

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nikkei average semiconductor stocks