Japan's Stock Indexes Jumped 3%; Yen and Bonds Turned Lower Amid Stimulus Plan Size Worries

Akira Ito
20 Nov, 2025
Tokyo

Stocks in Japan advanced in a broad market rally, powered by a rebound in AI-linked stocks following Nvidia's stronger-than-expected quarterly results.

The Nikkei 225 Stock Average soared nearly 3%, and the broader Topix advanced 2%, as AI bubble worries receded. 

The 4-day market slumped after benchmark indexes soared as investors stepped up to increase exposure to AI-linked stocks and technology companies. 

Nvidia's revenue in the third quarter soared 67% from a year ago to a record $57 billion, and the company's current quarter revenue estimate surpassed market expectations. 

Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts." 

However, the Japanese bond and currency markets danced to a different tune, and investors worried that Prime Minister Takaichi's plan could worsen Japan's fiscal debt problem. 

Investors anticipate the stimulus budget to be as large as 25 trillion yen. 

The yen dropped to a new 10-month low of 157.45 against the U.S. dollar, and the yield on Japan's 10-year bonds rose above 1.8%, the highest level since 2008. 

 

Japan Indexes and Stocks

The Nikkei 225 Stock Average jumped 2.8% to 49,903.96, and the broader Topix advanced 2% to 3,309.39.  

SoftBank Group advanced 2.8% to ¥19,310.0, Tokyo Electron jumped 5.5% to ¥32,570.0, and Advantest Corp. increased 8.6% to ¥20,795.0. 

Kioxia Holdings jumped 4.3% to ¥11,305.0, and last week the company announced net income in the fiscal second quarter plunged 62%. 

However, the memory chip maker, spun off from Toshiba Corp., held out for strong sales in the current quarter.