Japan’s Nikkei Stock Average Ends Higher to Track Wall Street Gains, Chip-Related Stocks Weigh (UPDATE 1)

Reuters

11:58 JST, August 5, 2025 (updated at 16:30JST)

TOKYO, Aug 5 (Reuters) – Japan’s Nikkei share average ended higher on Tuesday, tracking Wall Street’s strong finish overnight, while losses in chip-related stocks capped gains.

The Nikkei .N225 snapped two straight sessions of losses to end 0.64% higher at 40,549.54.

The broader Topix .TOPX climbed 0.7% at 2,936.54.

On Monday, all three major U.S. stock indexes logged their steepest daily percentage climb since May 27, as investors sought bargains after Friday’s selloff and ramped up bets for a September rate cut following a weaker-than-expected jobs data.

In Japan, Mitsubishi Heavy Industries7011.T jumped 5.72% as the heavy machinery maker clinched a landmark A$10 billion ($6.5 billion) deal to build Australia’s next-generation warships.

Technology investor SoftBank Group 9984.T rose 2.68% to lend the strongest boost to the Nikkei.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s (TSE) prime market, 74% rose, 21% fell and 3% traded flat.

All but three of the TSE’s 33 industry sub-indexes advanced, with the nonferrous metals sector climbing 3.68% to become the top-performing sector.

Cable maker Furukawa 5801.T jumped 7%, and its peers Sumitomo Electric5802.Tand Fujikura5803.Trose 4.9% and 3.94%, respectively, reflecting expectations for robust investments in data centers.

Chip-making equipment maker Tokyo Electron 8035.Tfell 0.4% and chip-testing equipment maker Advantest 6857.T pared losses to end flat.

“Those shares led the Nikkei’s rally last month, but so far they have lost that strong momentum,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Markets were jolted last week when shares of Tokyo Electron plunged, hitting their daily limit, after the firm slashed its profit forecast by a fifth.