Tokyo Stocks Rise as Semiconductor Sector Gains Momentum

2025-03-17 general

Tokyo, Monday, 17 March 2025.
Tokyo stocks experienced a boost, with the Nikkei Stock Average climbing by 1.14% to reach 37,475.24 yen. Semiconductor stocks led the charge, propelled by a rally in US markets. This increase was further supported by futures buying from overseas investors. The surge follows a prior period where the Nikkei Semiconductor Stock Index was oversold for seven consecutive sessions. The Bank of Japan’s upcoming meeting may shed light on further financial strategies.

Market Overview

The Tokyo Stock Exchange saw a continued rise in the Nikkei Stock Average during the morning session, reaching 37,475.24 yen, a 1.14% increase [1]. Semiconductor-related stocks significantly contributed to this surge, mirroring gains in the U.S. stock market [1]. This upward movement was also supported by intermittent purchases of stock index futures, potentially from overseas speculative investors [1]. The TOPIX also saw gains, rising by 1.17% to reach 2747.62 [1]. The JPX Prime 150 index similarly experienced an increase, climbing 1.30% to 1189.25 [1].

Semiconductor Sector Dynamics

Semiconductor stocks are vital components in numerous devices, ranging from mobile phones and computers to industrial equipment and transportation infrastructure [6]. The sector’s performance often serves as a leading indicator for the broader economy, given their early-stage involvement in various electronic developments [6]. On March 17, the (NEXT FUNDS) Nikkei Semiconductor Stock Index linked exchange traded fund rose, marking a 1.681 1.68% increase to reach 1,573 [3]. The surge in semiconductor stocks follows a period where the Nikkei Semiconductor Stock Index’s RSI (relative strength index) had fallen below 30 for seven consecutive trading days, signaling an oversold condition [1].

Factors Influencing Market Sentiment

Investor sentiment may be influenced by the Bank of Japan’s (BOJ) upcoming monetary policy meeting on March 18-19 [1]. While the market largely anticipates the BOJ to maintain its policy interest rate at 0.5%, persistent expectations remain for potential future rate hikes, driven by increasing wages [1]. Recent reports suggest China has made advancements in developing its own EUV lithography equipment and GAA technology [3]. While these technologies are not yet commercialized, some industry experts suggest that successful deployment could impact the existing semiconductor landscape, requiring continued innovation from other players [3].

Individual Stock Performances

Select stocks contributing to the Nikkei’s rise include Tokyo Electron, Advantest, and SoftBank Group [1]. Conversely, department store operators such as Isetan Mitsukoshi and J. Front Retailing experienced declines, along with Recruit Holdings [1]. Defense-related stocks such as Mitsubishi Heavy Industries, IHI, and Kawasaki Heavy Industries saw substantial gains [1]. Mitsubishi UFJ Financial Group reached its highest value since listing, adjusted for stock splits, amid expectations of future interest rate hikes [1]. Trading value on the Tokyo Prime market reached approximately 2.23 trillion yen with 923.44 million shares traded [1].

Bronnen

Semiconductor Stocks Nikkei Average