Japan’s Nikkei Stock Average Index Jumps as Chip Stocks Rally Ahead of Sino-US Talks (UPDATE 1)

Reuters

12:54 JST, June 9, 2025 (updated at 16:30 JST)

TOKYO, June 9 (Reuters) – Japan’s Nikkei share average advanced on Monday ahead of trade talks between the U.S. and China in London later in the day, with investors watching for any easing of restrictions on semiconductor shipments.

Both countries are under pressure to relieve tensions, with China dominating global exports of rare earth minerals needed for chips and other advanced technologies, which it has restricted, while the U.S. has curtailed exports of chip-design software to China.

A phone call between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Thursday led to the Monday talks, with Trump later saying rare earth supply would no longer be a problem for the United States.

The Nikkei .N225 rose 0.92% to 38,088.57 at the close.

The broader Topix .TOPX rose 0.58%. A sub-index of growth shares .TOPXG rallied 0.79%, outpacing a 0.38% rise in value shares .TOPXV.

Chip-testing equipment maker and Nvidia supplier Advantest 6857.T was the Nikkei’s biggest gainer in index-point terms with a 4.86% climb. Another chip company, Socionext 6526.T, soared 7.34% to be the top performer in percentage terms.

“The trade talks in London are, at the very least, a step in the direction of easing restrictions on chip shipments between the U.S. and China,” buoying the sector on Monday, said Yunosuke Ikeda, chief macro strategist at Nomura.

Artificial intelligence-focused startup investor SoftBank Group 9984.Tadvanced 4.98%. Chip-making device manufacturer Disco 6146.Tclimbed 3.24%.

Another standout was Otsuka Holdings 4578.T, which jumped 5.27% after the drugmaker said its experimental therapy for a potentially life-threatening kidney disease more than halved severe levels of protein in patients’ urine.

At the other end, iSpace 9348.Tfell by its daily limit of 20% for a second straight session after it failedin its second attempt to put a lunar lander on the moon last week.