Nikkei Rebounds to 4-Month High as Tech Shares Surge Amid Middle East Calm
Japan's Nikkei share average reached its highest level since February, driven by a period of calm in the Middle East and a boost in tech and semiconductor stocks. The Nikkei climbed 1%, with AI-linked stocks and chip-related companies leading the gains.
NikkeiTech SharesMiddle EastSemiconductorAiReal EstateJun 26, 2025
Artificial intelligence-linked stocks stood out, with startup investor SoftBank Group climbing 4.2% and chip-testing equipment maker Advantest advancing 3.5%. By contrast, the broader and less tech-heavy Topix rose 0.3%. A sub-index of growth shares gained 0.3%, outpacing a 0.2% increase in value shares.
Markets globally have been soothed by the ceasefire between Israel and Iran this week, which reduced the risk of disruptions to global oil supply. Japan imports virtually all of its crude, and energy-intensive manufacturing is a key national industry. "Growth shares, particularly semiconductor-related stocks, are benefitting from the improvement in risk sentiment," said Maki Sawada, a strategist at Nomura Securities. The AI boom narrative is still intact, she said, adding that investors are rotating into tech from defensive sectors such as real estate.
The Topix real estate sub-index slipped 0.3%. The Nikkei's worst-performing stock, however, was chipmaker Renesas, which tumbled nearly 9% on signs it would push back long-term targets by five years to 2035 at an investor presentation later in the day. The best performer was industrial machinery maker Ebara, which soared more than 10% after Tokai Tokyo Intelligence Laboratory reiterated its outperform rating on the stock.
Frequently Asked Questions
What factors contributed to the Nikkei's rise to a 4-month high?
The Nikkei's rise was primarily driven by a period of calm in the Middle East, which reduced the risk of disruptions to global oil supply. Additionally, there was a strong performance in tech and semiconductor stocks, particularly those linked to artificial intelligence.
Which stocks performed particularly well in the tech sector?
SoftBank Group and Advantest were among the best performers in the tech sector, with SoftBank Group climbing 4.2% and Advantest advancing 3.5%.
How did the real estate sector perform compared to tech stocks?
The real estate sector underperformed compared to tech stocks. The Topix real estate sub-index slipped 0.3%, while tech and growth shares saw significant gains.
What was the impact of the ceasefire between Israel and Iran on the Japanese market?
The ceasefire between Israel and Iran reduced the risk of disruptions to global oil supply, which is crucial for Japan as it imports virtually all of its crude. This improved risk sentiment and boosted the performance of growth and tech shares.
Why did Renesas, a chipmaker, perform poorly despite the overall market gains?
Renesas, a chipmaker, tumbled nearly 9% due to signs that it would push back its long-term targets by five years to 2035, as announced at an investor presentation later in the day.
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