Japan’s Nikkei Stock Rides Tech Boost to Two-Week High; BOJ Decision in Focus (UPDATE 1)

Reuters

12:25 JST, January 23, 2025 (updated at 16:25 JST)

TOKYO (Reuters) – Japan’s Nikkei share average rose on Thursday as SoftBank Group and other technology stocks tracked their U.S. peers higher for a second straight session, while investors awaited the Bank of Japan’s monetary policy decision due on Friday.

The tech boost helped propel the Nikkei to a fresh two-week closing high, ending the day up 0.8% at 39,958.87 after briefly rising above the key 40,000-point level.

The broader Topix finished up 0.5% at 2,751.74.

AI-focused startup investor SoftBank Group jumped 5.1% to provide the biggest boost to the benchmark.

The S&P 500 hit an intraday record peak on streaming video provider Netflix’s quarterly report and President Donald Trump’s private-sector artificial intelligence infrastructure investment plan.

Japan’s chip-testing equipment maker Advantest climbed 2.4%, while Fujikura, which manufactures material for data centers, jumped 4.8%.

The Nikkei’s fourth-straight day of gains comes ahead of the BOJ’s decision on Friday, with markets all but certain the central bank will raise short-term interest rates.

The market has seen a “restrained” start to the year as investors parse out the U.S. economic picture and BOJ guidance, said Kyle Rodda, senior financial market analyst at Capital.com.

The Nikkei rose as high as 40,288.80 at the beginning of the year but slipped to a more than one-month low last week.

“The Nikkei has sought out excuses to push higher but is lacking the catalyst to break out of its range,” Rodda said.

“Relatively attractive valuations and solid growth conditions will eventually allow this (climb higher) to unfold, assuming the U.S. inflation story and currency volatility remains stable.”

Manufacturing giant Nidec rose 3.8%, while chip-making equipment maker Disco sagged 2.5%. The two firms publish corporate revenue reports on Thursday as Japan’s earnings season gets underway.

Among other heavyweights, chip-making equipment giant Tokyo Electron slid 0.2%, while Uniqlo parent Fast Retailing gained 1% and TDK rose 3%.