nikkei soars to 5-month peak amid ai-driven rally
tokyo, Thursday, 26 June 2025.
tokyo’s stock exchange is surging. The nikkei average closed at 39,584.58 yen, a five-month high. A 1.65% gain reflects strong ai demand expectations. Nvidia’s record performance boosted us tech stocks. Semiconductor stocks like advantest also jumped. Overseas investors have been net buyers for 12 weeks. Crossing the 39,000 yen mark created a ‘vacuum zone’. This psychological milestone fueled further confidence.
market overview
The Tokyo stock market closed higher for the third consecutive session [2][3]. The Nikkei Stock Average finished at 39,584.58 yen, a gain of 642.51 yen, or 1.65% [2][3][4]. This marks the highest closing value in approximately five months, since January 24 [2]. The positive momentum was largely influenced by gains in US technology stocks, particularly Nvidia, and strong demand expectations for AI-related technologies [2][1].
ai and semiconductor boost
Semiconductor-related stocks experienced significant increases [2][1]. Advantest, a semiconductor testing equipment manufacturer, reached its highest value since listing [2][1]. Lasertec also hit a year-to-date high [2]. The Philadelphia Semiconductor Stock Index (SOX) also rose, driven by expectations of expanding semiconductor demand due to the proliferation of generative AI [2]. This surge reflects growing investor confidence in the AI and semiconductor sectors [1].
investor sentiment and trading dynamics
Overseas investors have been net buyers of Japanese stocks for twelve consecutive weeks, supporting the market’s upward trend [1]. The breakthrough above the 39,000 yen level is viewed as significant [2][6]. This level had previously acted as a ‘vacuum zone’ with limited trading activity earlier in the year, suggesting fewer sellers waiting to exit positions [6]. Increased buying in stock index futures by overseas short-term investors further propelled the market [2].
sector performance and laggards
The broader TOPIX index also rose for the third straight day, closing up 22.45 points, or 0.81%, at 2804.69 [2]. The JPX Prime 150 index similarly advanced, gaining 10.94 points, or 0.90%, to close at 1232.85 [2]. Conversely, some automotive stocks, including Toyota and Honda, faced headwinds [2]. Concerns over unresolved US-Japan trade negotiations and potential automobile tariffs weighed on these stocks [2]. Renesas experienced a significant decline after announcing a five-year delay in achieving its long-term targets [2].
market breadth and trading volume
Overall trading activity on the Tokyo Stock Exchange’s Prime market was robust [2]. The estimated turnover was 4.9217 trillion yen, with 1.83014 billion shares traded [2]. There were 1189 advancing issues versus 380 declining, with 59 remaining unchanged [2]. Fast Retailing, Fanuc, and Recruit contributed to the gains, while Daiichi Sankyo, Hoya, and Kao experienced declines [2].