Japan Market Daily

The Nikkei 225 rallied for a third straight session on September 18, closing up 882.70 yen (+1.52%) at 65,018.95, reclaiming the 65,000 level for the first time in about a week. The TOPIX, by contrast, dipped slightly for the first time in three sessions, down 3.05 points to 4,091.14. At its policy meeting, the Bank of Japan raised its policy rate by 0.25 point to around 1.25%, in a 7-2 vote that matched market expectations, prompting a wave of buying in the afternoon session. By contribution, Advantest added about 436 yen, Tokyo Electron about 215 yen, Kioxia Holdings about 110 yen, Ibiden about 72 yen, and SoftBank Group about 55 yen. Semiconductor, semiconductor-equipment and AI-related shares led the rally, while KDDI, Terumo and Itochu declined. The dollar moved toward yen weakness after the BOJ's rate hike announcement, trading around 157.10 yen.

The Nikkei 225 extended its gains on September 17, closing up 213.25 yen (+0.33%) at 64,136.25. The TOPIX also rose, up 32.47 points to 4,094.19, with advancing issues accounting for 82% of the market. Fast Retailing alone added about 53 yen, and together with SoftBank Group the two stocks contributed about 105 yen. Recruit Holdings, Chugai Pharmaceutical, Konami Group and Bandai Namco Holdings also supported the rally. Advantest was the biggest drag, cutting about 111 yen on its own, while Tokyo Electron, TDK, Ibiden and Kioxia Holdings and other semiconductor-related issues were weak. Gains in Sanrio and Mitsubishi Heavy Industries, along with strength in US and South Korean semiconductor shares, also supported the market. In Tokyo forex trading, the dollar traded at 155.64 yen, up 0.62 yen from the previous day.

The Nikkei 225 rebounded for the first time in four sessions on September 16, closing up 438.90 yen (+0.68%) at 63,923.00. The TOPIX also rose, up 24.56 points to 4,061.72. Continued gains in crude oil prices lifted oil and mining-related stocks, while a rise in South Korea's KOSPI index spurred buy-backs in the afternoon session. By contribution, Advantest added 130.33 yen and Tokyo Electron 104.59 yen, followed by Fast Retailing, Recruit Holdings and Shin-Etsu Chemical. SoftBank Group cut 77.23 yen and Kioxia Holdings 22.76 yen. The prior day's US stock decline, concerns over slowing AI development, and rising long-term interest rates in Japan and the US capped further gains. On the TSE Prime market, 67.4% of issues rose and 29.0% fell. The dollar traded at 155.02 yen, down 0.09 yen from the previous day.

The Nikkei 225 edged down for a third straight session on September 15, closing down 8.89 yen at 63,484.10. The TOPIX fell more sharply, down 21.05 points to 4,037.16, with large-cap names outperforming smaller issues. Advantest alone pulled the index down about 222 yen, and together with Tokyo Electron the two stocks cut about 250 yen. Fujikura, Toyota Tsusho, Fast Retailing, Sony Group and KDDI were also weak. SoftBank Group was the biggest positive contributor, adding about 353 yen on its own, with Recruit Holdings and Kioxia Holdings also supporting the index. In Tokyo forex trading, the dollar rose to 154.91 yen and briefly topped 155 yen during London hours, driven by expectations that the two-day US FOMC meeting starting today will begin a rate-hike cycle, along with safe-haven dollar buying amid heightened Middle East tensions.

The Nikkei 225 fell on September 14, closing down 518.35 points (-0.81%) from the previous week's close at 63,492.99. SoftBank Group and Advantest together dragged the index down about 718 yen, as concerns over slowing AI development and elevated crude oil futures prices weighed on investor sentiment. By contribution, SoftBank Group cut 563 yen, Advantest 154 yen, and Kioxia Holdings 81 yen, while Recruit Holdings added 99 yen, Konami Group 28 yen, and Sony Group 26 yen. The TOPIX rose for a third straight session, up 29.91 points to 4,058.21 versus the previous week's close. In Tokyo forex trading, the dollar traded in a range of 153.38 to 154.14 yen, standing at 154.02 yen as of 3 p.m. Position adjustments were also seen ahead of this week's US FOMC meeting and the Bank of Japan's policy meeting.

On September 11, 2026, Tokyo's Nikkei 225 fell sharply, closing down 1,259.61 points (-1.93%) at 64,011.34, its lowest in about a month. The TOPIX also declined, losing 26.28 points to 4,028.30. Crude oil prices surged on concerns over disruption in the Strait of Hormuz, with Brent topping 109 dollars a barrel and WTI exceeding 100 dollars, and combined with inflation worries from rising long-term interest rates, selling dominated in semiconductor and AI-related shares. The decline exceeded 2,000 points at one stage. Advantest and SoftBank Group alone subtracted about 748 points from the index, and together with Tokyo Electron and Kioxia the four names accounted for about 979 points of the drop. On the other side, auto shares on the weaker yen, megabanks benefiting from higher rates, and resource and trading house shares benefiting from higher oil were bought. USD/JPY traded between 154.21 and 154.61.

On September 10, 2026, Tokyo's Nikkei 225 rebounded slightly for the first time in three sessions, closing up 128.17 points (+0.20%) at 65,270.95. The TOPIX also recovered, rising 7.94 points to 4,054.58. In the morning session selling intensified on wariness over prolonged turmoil in the Middle East, pushing the index down to 64,186, but it turned around in the afternoon as semiconductor-related shares were bought following strong monthly sales figures from Taiwan Semiconductor Manufacturing Company. Advantest rose 3.29% and Recruit Holdings 3.56%, with the two names adding about 315 points to the index, while Murata Manufacturing gained 5.57%. On the other side, Fujikura fell 5.17%, Ibiden 3.45% and Tokyo Electron 1.66%. On the TSE Prime Market advancers and decliners were evenly matched at 723 to 783. USD/JPY traded in a narrow range between around 153.30 and the 153.70 area.

On September 9, 2026, Tokyo's Nikkei 225 fell for a second day, closing down 126.55 points (-0.19%) at 65,142.78. The TOPIX also edged lower for a second session, losing 3.69 points to 4,046.64. The market followed the previous day's decline in US equities on concerns over the Middle East, but cable and semiconductor-related shares provided support on favorable news from Corning and Qualcomm. Furukawa Electric surged 12.63% and Fujikura 8.07%, while SoftBank Group rose 3.87% and single-handedly added about 204 points to the index. On the other side, Advantest fell 2.84% and alone subtracted about 231 points, and together with Fast Retailing the two names accounted for about 382 points of downward pressure. More than 900 issues declined on the TSE Prime Market, close to 60% of the total. USD/JPY fell from the 153.70 area in the morning to 153.14 after 3 p.m. as yen-buying pressure persisted.

On September 8, 2026, Tokyo's Nikkei 225 fell sharply for the first time in three sessions, closing at the day's low, down 1,130.51 points (-1.70%) at 65,269.33. The TOPIX also declined, losing 75.47 points to 4,050.33. Risk-averse selling intensified as USD/JPY reached the 152.80 area at one point, the strongest for the yen in about six months, and as tensions in the Middle East mounted. The US market had been closed the previous day for Labor Day. More than 1,100 issues fell on the TSE Prime Market, over 70% of the total, and 24 of the 33 sector indexes declined. Tokyo Electron and Advantest alone subtracted about 349 points from the index, TDK fell 6.89% and Ibiden 6.26%, while SoftBank Group rose 5.45% and Nitori Holdings 5.47%. The Cabinet Office reported that revised real GDP for April-June was up 1.4% at an annual rate, an upgrade from the preliminary reading of 1.1%.

On September 7, 2026, Tokyo's Nikkei 225 rose sharply for a second straight session, closing up 1,378.90 points (+2.02%) at 66,399.84 and recovering the 66,000 level on a closing basis for the first time in four sessions since the 1st. The TOPIX also gained 0.55% to 4,125.80. Buying in semiconductor-related shares led the advance after the Philadelphia Semiconductor Index rose more than 3% in the US market at the end of the previous week. SoftBank Group jumped 11.22%, Kioxia 9.31%, Tokyo Electron 4.73% and Advantest 4.20%, while Konami Group, Chugai Pharmaceutical and Sony Group were sold, and more than 850 issues fell on the TSE Prime Market, over half of the total. The US employment report for August, released on the 4th, showed nonfarm payrolls up 162,000, beating the market forecast of 58,000. USD/JPY traded between 155.54 and 156.28.

On September 4, 2026, Tokyo's Nikkei 225 rebounded sharply for the first time in five sessions, closing up 806.46 points (+1.26%) at 65,020.94 and recovering the psychological 65,000 mark. The TOPIX managed only a slim second straight gain, rising 1.19 points to 4,103.23. Expectations of rate hikes receded after a speech by a Federal Reserve governor, and buybacks centered on technology shares came in against the backdrop of the previous day's gains in US equities. SoftBank Group rose 11.78% and Advantest 2.51%, and those two names alone added about 669 points to the index. Kioxia Holdings also gained 5.40%, while trading house shares such as Mitsui and Mitsubishi Corporation and Recruit Holdings declined, leaving only 11 of the 33 sector indexes higher. USD/JPY lacked direction ahead of the US employment report, trading in a range of 155.30 to 156.45.

On September 3, 2026, Tokyo's Nikkei 225 fell for a fourth straight session, closing down 111.16 points (-0.17%) at 64,214.48, while the TOPIX rebounded, rising 20.44 points to 4,102.04. Buying aimed at a technical rebound came first after the previous day's gains in US equities, but the market followed South Korea's KOSPI lower as that index weakened rapidly, and high crude oil prices along with expectations of rate hikes in Japan and the United States also capped the upside. On the TSE Prime Market 805 issues advanced and 685 declined, with 20 of the 33 sector indexes higher as wholesale trade, electric power and gas, and marine transport were bought. Trading house shares including Mitsubishi Corporation and SoftBank Group rose, while Fast Retailing and Advantest alone subtracted about 255 points from the index. Trading value was 7.577 trillion yen. USD/JPY fell from 158.96 in the morning to 156.35 by early evening as hawkish remarks from a Bank of Japan official spurred yen buying.

On September 2, 2026, Tokyo's Nikkei 225 fell sharply for a second day, closing down 1,889.70 points (-2.96%) at 64,325.64 and dropping below 65,000 for the first time in about a month since August 4. The TOPIX also reversed lower, losing 100.26 points to 4,081.60. Risk-averse selling intensified after reports that US forces had carried out air strikes on Islamic Revolutionary Guard Corps facilities in Iran in the early hours of the 2nd Japan time and that two tankers had been attacked in the Strait of Hormuz. New York crude oil futures rose above 90 dollars a barrel for the first time in about a month, and higher long-term interest rates in Japan and the United States also weighed. More than 1,400 issues fell on the TSE Prime Market, over 90% of the total, and all 33 sector indexes declined. SoftBank Group dropped 6.42%, and together with Advantest, Tokyo Electron and Recruit the four names subtracted about 777 points from the index, while Daiichi Sankyo and Shionogi held firm. USD/JPY was around 159.62.

On September 1, 2026, Tokyo's Nikkei 225 slipped for a second day, closing down 96.59 points (-0.15%) at 66,215.34, while the TOPIX rose for another session, gaining 25.57 points to 4,181.86. Selling led by technology shares came first on weakness in US equities, and the index fell to 65,576.61 in the morning before buybacks emerged as South Korean stocks turned positive. It softened again, however, on inflation concerns from higher crude oil prices and rising long-term interest rates in both Japan and the United States. The newly issued 10-year Japanese government bond yield touched 3.0% at one point, its highest in about 30 years, on expectations of an early Bank of Japan rate hike and fiscal concerns. Tokyo Electron and Fast Retailing together subtracted about 242 points from the index and Recruit fell 3.95%, while SoftBank Group, Kioxia and KDDI advanced, and 26 of the 33 sector indexes rose in a rotation into value stocks.