Japan's Indexes Extended 2-Day Gains Amid Expectations of Robust AI Infrastructure Spending

Akira Ito
23 Jul, 2026
Tokyo

Japan's stocks extended this week's gains for the second consecutive session amid expectations that robust spending on AI infrastructure will continue to support the sector. 

The Nikkei 225 Stock Average edged up 0.4%, the broader TOPIX inched higher 0.3%, and the yen hovered at 163.04 against the U.S. dollar ahead of key domestic earnings. 

Investors bid up semiconductor and AI-related electronic component makers after Alphabet hiked its estimate for 2026 capital expenditure to between $195 billion and $205 billion from the previous range between $180 billion and $190 billion. 

Google's parent company said the demand for AI-related searches and products is booming, while supply is still lagging behind. 

Escalating tensions in the Middle East kept market gains in check as the U.S. and Iran war intensified and raised the risks of prolonged disruptions in shipments through the Strait of Hormuz. 

Hostilities in the region spread to the Red Sea, and the Iran-backed Houthi rebels said they had targeted Saudi Arabian tankers there, raising shipping risks and further choking global energy supplies.

The Brent crude oil price increased 2.5% to $96.05 as the latest round of military exchanges between the U.S. and Iran extended to the 12th day in a row. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.4% to 66,338.74, and the broader TOPIX gained 0.35% to 4,048.31. 

Tokyo Electron increased 0.9% to ¥66,530.0, Advantest Corp. gained 4.3% to ¥30,840.0, and Renesas Electronics added 1.7% to ¥4,247.0, and Murata Manufacturing advanced 3.6% to ¥8,612.0. 

Nippon Yusen KK decreased 0.4% to ¥5,797.0, Mitsui O.S.K. Lines Ltd. declined 0.2% to ¥5,774.0, and Kawasaki Kisen Kaisha Ltd. edged up 0.5% to ¥2,777.0.