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.
Related News Articles
India's Rise to Realty Prominence: A Billion-Dollar Boom
India is accelerating to become the real estate capital of Asia, with a total valuation of Rs 14.2 trillion among the top 100 realty companies.
Maharashtra Cabinet Renames Pune Airport After Sant Tukaram Maharaj
The Maharashtra Cabinet has approved a proposal to rename Pune airport after the 17th-century Warkari saint and poet, Sant Tukaram Maharaj.
The Downfall of Real Estate Moguls: Alexander Brothers Arrested in Miami
In a shocking turn of events, the renowned real estate moguls, the Alexander Brothers, were recently arrested in Miami. This news has sent ripples through the business community, leaving many to wonder what led to their downfall.
Luxury Homes, Toxic Air: The Urban Pollution Paradox in India
Nithin Kamath, a prominent real estate analyst, highlights the growing concern of urban pollution in major Indian cities like Delhi, Mumbai, and Bengaluru. Despite seeing a surge in luxury real estate, these cities struggle with alarming levels of air pol
Tragic Incident: Two Workers Killed, One Injured as Slab Collapses in Chikhla Mines
A devastating slab collapse in the Chikhla mines of Manganese Ore (India) has resulted in the death of two workers and left one injured. The incident has raised serious concerns about safety protocols in the mining industry.
Women Home Buyers Witness 14% Surge in 2024: Report
A recent report by Square Yards, titled 'Key Holders of Change - Women Driving Real Estate Growth and Transformation,' reveals a significant 14% increase in women homebuyers in 2024.