Tech Stock Surge Powered 1.6% Rebound In Japan's Nikkei 225 Index

Akira Ito
22 Jan, 2025
Tokyo

Stock market indexes in Tokyo advanced to two-week highs amid recovering sentiment ahead of rate decisions on Friday. 

The Nikkei 225 index soared 1.6%, and the broader TOPIX advanced about 1% following the rise in overnight trading in tech stocks. 

Artificial intelligence-linked stocks were in focus again after Softbank announced it would be part of a joint venture to develop data centers for artificial intelligence infrastructure in the U.S. 

Stargate, a joint venture of OpenAI, Softbank, and Oracle, announced its plans to invest $100 billion to build and develop a network of data centers across the U.S. 

The news received widespread publicity in the U.S., but leading tech companies, including Google, Microsoft, Amazon, and Meta Platforms, are already working on similar projects with deeper financial and technological resources. 

Tech companies in Silicon Valley were skeptical, citing the shaky nature of the alliance with limited technological resources.

Softbank chief executive Masayoshi Son, prone to hyperbole, has not always been reliable in following up with his grand announcements in the past.

Investors are widely anticipating the Bank of Japan to hold interest rates steady at the end of the policy meeting on Friday. 

The Japanese yen traded in a tight range and closed nearly unchanged at 155.61 against the U.S. dollar. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 1.6% to 39,646.25, and the broader TOPIX advanced 0.9% to 2,737.19. 

Tokyo Electron advanced 1.7% to ¥27,490.0, Advantest Corp. gained 4% to ¥9,819.0, Disco Corp. soared 11.5% to ¥52,140.0, and SoftBank Group jumped 10.5% to ¥10,230.0. 

Diversified trading companies approached one-year lows amid worries about the slowing exports and weakening yen over the last nine months. 

Marubeni Corp. declined 0.2% to ¥2,249.50, Mitsui & Co. decreased 0.3% to ¥3,055.0, Itochu Corp. dropped 1% to ¥7,075.0, and Mitsubishi Corp. fell 0.4% to ¥2,452.0. 

Shipping companies extended recent losses to 18% and dropped to four-month lows. 

Mitsui O.S.K. Lines Ltd. fell 1.5% to ¥5,003.0, Kawasaki Kisen Kaisha Ltd. decreased 1.1% to ¥1,931.0, and Nippon Yusen KK dropped 1.7% to ¥4,705.0.