Technology Stock Rally Lifted Japan's Indexes Near Record Highs

Akira Ito
10 Sep, 2025
Tokyo

Technology stocks in Tokyo led gainers on Wednesday, driving broader benchmark indexes higher. 

The Nikkei 225 Stocks Average gained 0.8%, and the broader Topix increased 0.6% as domestic manufacturers' sentiment hit a three-year high. 

The Reuters Tankan Index for Japanese manufacturers rose to +13 in September, as trade uncertainties eased following a trade deal with the U.S. 

The index reached its highest level since August 2022, as sentiment improved in six of the nine manufacturing industries, led by automobile and transportation machinery.

However, the index is expected to ease to +11 by December amid persistent worries about a fragile domestic economy. 

Investor sentiment in Tokyo improved following the downward revision of U.S. payroll gains over the 12-month period to March 2025, indicating that the labor market is weaker than previously estimated. 

The Bureau of Labor Statistics said that the U.S. economy added 911,000 fewer jobs over a year ending in March 2025, which accounts for a much wider set of data covering nearly 95% of the labor force. 

The agency previously estimated that the U.S. economy added about 1.79 million jobs in a year ending in March 2025. 

The sharp annual downward revision to the payroll gains follows an 818,000 downward revision for the year ending in March 2024, supporting the case for the Federal Reserve to consider a larger rate cut of 50 basis points during the policy meeting next week. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.8% to 43,809.31, and the broader Topix added 0.6% to 3,140.79. 

Tokyo Electron increased 0.6% to ¥21,150.0, Advantest Corp. gained 3.2% to ¥13,125.0, and Disco Corp. jumped 3.3% to ¥39,000.0. 

Toyota Motor Corp. decreased 1.2% to ¥2,913.50, Honda Motor declined 1.8% to ¥1,666.0, and Nissan Motor fell 0.6% to ¥354.90.