Japan’s Nikkei Stock Average Climbs a 2nd Day, Led by Tech on Fed Rate Cut Hopes (UPDATE 1)

Reuters

12:25 JST, August 25, 2025 (updated at 16:15JST)

TOKYO, Aug 25 (Reuters) – Japan’s Nikkei share average rose for a second straight session on Monday, led by tech shares as the domestic market reacted to optimism for looser monetary policy in the U.S.

The Nikkei 225 Index .N225 gained 0.4% to close at 42,807.82. The broader Topix .TOPX added just under 0.2%.

SoftBank Group 9984.T and chip-testing equipment maker Advantest 6857.T were among the biggest contributors to the Nikkei’s advance, climbing 3.5% and 1.1%, respectively.

In a closely-watched speech at the Federal Reserve’s annual Jackson Hole symposium on Friday, the central bank’s Chair, Jerome Powell, signaled the possibility of a rate cut next month.

Going in the other direction, Bank of Japan Governor Kazuo Ueda highlighted wage growth that is feeding into conditions for a resumption of interest rate increases.

The divergence in the central bank’s policy led to a surge in the yen, crimping revenue prospects for Japanese exporters.

Increasing prospects for a U.S. rate cut acted as tailwind for tech stocks on Wall Street and in Japan, said Nomura strategist Fumika Shimizu.

“As a result, Japanese semiconductor-related stocks are also showing strength and leading the market,” Shimizu said.

“There is a possibility that the recent slight upward trend in the yen is weighing on the market.”

There were 118 advancers on the Nikkei index against 107 decliners.

TOTO 5332.T jumped 7.9% to be the biggest percentage gainer on the benchmark after the luxury toilet maker said on Friday it was opening a $224 million plant in the U.S. southern state of Georgia, shifting production away from Asia.

The biggest loser on the index was Terumo 4543.T, down 4%, after saying it would spend $1.5 billion to buy Britain-based Organox, a maker of organ preservation technology.