nikkei soars: tsmc's profit jump and yen's slide spark rally

2025-04-17 general

Tokyo, Thursday, 17 April 2025.
tokyo’s stock market experienced a boost. The nikkei climbed 1.35% on thursday, april 17th, 2025. this surge followed reports from japan-u.s. tariff negotiations. there was no discussion about foreign exchange. this led to a weaker yen. tsmc also reported better-than-expected earnings. their profits jumped 60% year-over-year. this fueled optimism among investors. the tokyo stock exchange saw a broad rally. gainers outnumbered losers by a wide margin.

market overview

The Nikkei Stock Average closed at 34,377.60, a gain of 457.20 yen from the previous day [1][4]. This translates to a 1.35% increase [1][4]. The positive momentum was further reflected in the TOPIX, which rose by 1.29% to reach 2530.23 [1]. The JPX Prime 150 index also saw a similar upswing, closing at 1110.97, a 1.30% increase [1]. These figures highlight a broad recovery across major indices in the Tokyo market [1].

yen’s decline and tsmc’s performance

The yen’s depreciation against the dollar played a significant role in boosting investor sentiment [1]. This decline followed reports that currency exchange was not discussed during the Japan-U.S. tariff negotiations [1][2]. TSMC’s first-quarter earnings for 2025 exceeded market expectations, with net profits increasing by 60% compared to the same period last year [1]. TSMC anticipates increased revenue in the second quarter [1]. This positive outlook boosted semiconductor-related stocks in the Tokyo market [1].

sector performance and trading activity

Trading activity on the Tokyo Stock Exchange’s Prime market saw a total turnover of approximately 3.741 trillion yen, with 1.566 billion shares traded [1]. Advancing issues outnumbered declining ones, with 1183 gainers compared to 398 losers and 55 issues remaining unchanged [1]. Certain stocks such as TDK, Terumo, and Fanuc experienced gains [1]. Conversely, notable decliners included Nitori HD, Kao, and OLC [1]. These movements reflect varied investor reactions across different sectors [1].

expert perspectives and market outlook

Following the Japan-U.S. tariff negotiations, Economy and Fiscal Policy Minister Akazawa Ryosei stated that discussions would continue between the two countries [1]. He confirmed that currency exchange was not addressed during the talks [1]. U.S. President Trump commented on the Japan-U.S. negotiations, posting on social media about ‘significant progress’ [1]. The market had anticipated potential demands for correcting the yen’s weakness, leading to a favorable reaction to these announcements [1].

potential headwinds and cautionary notes

While the market responded positively to the yen’s decline and TSMC’s earnings, some analysts remain cautious [1]. They note that concrete agreements on tariffs are still pending [1]. This suggests that the current strength in the yen and stock prices could be tempered by future developments [1]. Investors should monitor further announcements from the Japan-U.S. trade talks, expected by the end of April 2025 [alert! ‘date is based on background information from source 6, not explicit in source’] [6].

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nikkei average yen decline