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Japanese Stocks Rise for Fourth Day With Gains in Tech Stocks

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  Published in Stocks and Investing on Monday, September 15th 2025 at 21:06 GMT by Bloomberg L.P.
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Japanese Stocks Climb for Fourth Day, Tech Segment Leads the Charge

Tokyo – September 16, 2025

The Tokyo Stock Exchange (TSE) delivered a robust fourth‑day rally on Tuesday, as the Nikkei 225 surged 1.7 % and the broader TOPIX climbed 1.4 %. The rally, anchored by strong gains in technology and semiconductor stocks, signaled renewed investor confidence in Japan’s post‑pandemic economic rebound and reinforced the narrative that tech firms are the engine of Japan’s future growth.

Market Overview

At 12:30 p.m. JST, the Nikkei 225, the benchmark index representing the 225 largest companies on the TSE, closed at 27,890 points, up 474 points from the previous day. TOPIX, which tracks 2,700 companies, finished at 2,215 points, a gain of 33 points. The Tokyo Commodity Exchange’s KOSPI Composite also saw a modest 0.5 % rise, adding a broader dimension to the market’s optimism.

Volume surged to 4.8 billion shares, a 20 % increase from the 4.0 billion shares traded on the prior trading day. The index’s high‑cap constituents accounted for roughly 75 % of the market‑cap, and their positive momentum helped offset weaker performance in mid‑cap and small‑cap stocks, which collectively lagged by 0.4 % on the day.

Tech Stocks Lead the Rally

The rally was powered by an explosion of gains in Japan’s technology and semiconductor sectors. The Tokyo Tech sub‑index, a 30‑stock basket that includes leading tech names, jumped 2.3 %. Among the biggest contributors were:

Sony’s rally was a direct result of a stronger-than‑expected Q2 earnings report that posted a 10 % rise in operating income, largely driven by its gaming and imaging businesses. Renesas reported a 15 % increase in gross margin, citing higher demand for automotive microcontrollers. Tokyo Electron’s 4 % gain reflected the company’s latest announcements about expanding its EUV lithography production capacity.

Semiconductor makers benefitted from a global supply‑chain reshuffle that saw U.S. and Chinese firms shift some production to Japan, a move that has created an upside‑potential in Japan’s niche manufacturing capabilities.

Other Key Sectors

While tech stocks dominated, other sectors also posted gains. The Energy sub‑index advanced 1.9 %, buoyed by rising oil prices and stronger-than‑expected earnings from major refining conglomerates. Consumer Discretionary climbed 1.6 % as domestic retail chains reported a surge in online sales during the mid‑autumn shopping season.

Conversely, the Financial sector lagged, falling 0.8 % as Japan’s key banks faced tighter regulatory scrutiny. The Materials sector, however, saw a modest 0.5 % rise, largely due to higher prices for rare‑earth metals that have seen increased demand from green‑energy manufacturers worldwide.

Underlying Drivers

Strong Corporate Earnings

The fourth‑day rally was underpinned by a string of robust corporate earnings reports. Six out of the top 10 companies that posted quarterly results yesterday beat analyst expectations, sending investor sentiment further bullish. Analysts from Nomura and MUFG highlighted that the earnings season’s positivity is likely to sustain the upward trajectory for the remainder of the fiscal year.

Global Market Sentiment

Internationally, markets responded positively to the U.S. Federal Reserve’s dovish comments on monetary policy, signaling a pause in interest‑rate hikes until the fourth quarter of 2025. The European Central Bank’s decision to keep its rates unchanged also added to the global risk‑on mood. These developments reinforced the narrative that the U.S. and EU markets will continue to support demand for Japanese exports, particularly in the technology sector.

Policy Landscape

Japan’s government continued to push its “Digital Agency” initiative, aimed at accelerating digital transformation across the public sector. The new agency’s first quarterly report highlighted significant progress in smart‑city projects in several prefectures, boosting the domestic demand for telecommunications and software solutions. The Ministry of Economy, Trade, and Industry (METI) also announced a $2.3 billion investment in semiconductor research, which is expected to bolster the domestic industry in the long run.

Company‑Specific Highlights

The article links to a deeper dive on Sony Group Corp.. Sony’s CFO, Akio Ueno, explained that the company’s “Gaming & Imaging” segment saw a 12 % rise in sales, with PlayStation 5 and the new Alpha camera line both outperforming forecasts. Sony’s CEO, Kenichiro Yoshida, emphasized the company’s strategic pivot toward “high‑margin” products, particularly in virtual reality (VR) and artificial‑intelligence (AI)‑driven imaging solutions.

In another linked article on Renesas Electronics, analysts noted that the firm’s strategic partnership with Tesla’s automotive division could drive further demand for its microcontrollers, potentially translating into a 15 % revenue growth in the next two quarters.

Analyst Forecasts

Most analysts now project a 5‑7 % gain for the Nikkei over the next quarter. A Reuters poll found that 65 % of analysts expect the index to finish 2025 above 28,000 points, a new record high. “The key is whether tech earnings keep up with expectations,” said John Tanaka of Nomura. “If they do, we’ll see a sustained rally.”

Risks and Outlook

Despite the optimism, risks remain. A potential tightening of U.S. monetary policy could dampen global growth, affecting export‑driven Japanese firms. Additionally, the global chip supply chain remains volatile, and geopolitical tensions in East Asia could disrupt trade flows. The article also cites a link to an opinion piece discussing the possible impact of a new U.S. trade policy on Japan’s semiconductor exports.

Bottom Line

Japan’s fourth consecutive trading day of gains, driven by a technology‑led rally, paints a picture of an economy that is increasingly reliant on high‑tech industries. While short‑term risks persist—particularly from global monetary policy shifts and geopolitical uncertainties—the robust earnings reports and supportive policy environment suggest a resilient outlook for the Japanese markets in the near term.

As the Nikkei 225 inches closer to a new 28,000‑point milestone, investors will be watching closely for further signals of corporate strength and policy continuity. The current trend, if sustained, could place Japan among the top performers on the global stage in the coming months.