Nikkei Surges as Japanese Stocks Soar
Japanese markets closed sharply higher in Wednesday's trading. The Nikkei 225 surged approximately 3.6%, bolstered by gains in the real estate, banking, and textile sectors, alongside renewed interest in technology and artificial intelligence stocks. This rally mirrored gains across Asian markets, following record highs on Wall Street and a continued decline in oil prices.
Ibiden was the top performer, soaring 24.49% to 20,330 yen. Yamaha Motor followed with a 19.46% rise to 1,805 yen—hitting a record high—while SoftBank Group jumped 13.96% to 5,958 yen.
However, not all stocks advanced. Yokogawa Electric fell 10.04%, IHI declined 6.53%, and Daikin Industries dropped 6.31%. Nevertheless, market sentiment remained positive, with 2,329 stocks rising compared to 1,145 falling.
Falling oil prices also supported the Japanese market, which relies heavily on energy imports. Brent crude hovered around US$79 per barrel, while WTI fell toward US$75 as optimism regarding the reopening of the Strait of Hormuz eased concerns over supply disruptions and inflation.
In currency markets, the USD/JPY pair remained relatively stable around 157.62. The yen has retained some of the gains made following joint intervention by Japan and the U.S., though it has not yet strengthened enough to exert significant pressure on Japanese exporters' stocks.
Newsmaker Analysis: Nikkei momentum remains positive, driven by the rally in AI stocks, corporate earnings reports, and lower energy costs. However, a 3.6% single-session gain raises the risk of profit-taking. Volatility remains high; future direction will be influenced by yen movements, developments in the Strait of Hormuz, and the performance of global technology stocks. A yen holding steady in the 157–158 range could support exporters, whereas a sharp appreciation of the yen has the potential to curb the Nikkei's rally.
Source: Newsmaker.id
