Japan’s Nikkei Stock Average Rebounds as Tech Shares Mirror Wall Street Peers (UPDATE 1)

Reuters

12:28 JST, September 4, 2025 (updated at 16:15JST)

TOKYO, Sept 4 (Reuters) – Japan’s Nikkei share average rebounded on Thursday from a nearly one-month low in the previous session, as domestic technology stocks led the rally following overnight gains among U.S. peers.

The Nikkei .N225 ended the day up 1.5% at 42,580.27, after the index’s lowest close since August 8 on Wednesday.

Artificial intelligence-focussed start-up investor SoftBank Group 9984.T extended gains throughout the session to finish as the Nikkei’s top-performing stock with a 6.5% advance.

Circuitry- and optical cable-maker Fujikura 5803.T jumped 5.1% to take the second place, followed by chip-testing equipment-maker Advantest 6857.T, which gained 4.7%.

The broader Topix .TOPX rose 1% to 3,080.17.

Overnight, the tech-heavy U.S. Nasdaq Composite .IXIC advanced more than 1%, rebounding strongly from a 0.8% slide in the previous session.

Global equities were rattled this week by a sharp rise in long-term bond yields on worries about deteriorating fiscal health in major economies from the U.S. to France, Britain, and Japan. Markets calmed overnight, though, after soft U.S. jobs data reinforced expectations that the Federal Reserve will cut interest rates later this month.

Rather than signaling a bearish shift in equity markets, “it would be reasonable to see this adjustment as a buying opportunity,” particularly for Japanese stocks, J.P.Morgan strategists wrote in a client note.

Compared with the U.S. and elsewhere, Japanese stocks are supported by “few concerns regarding valuation, low holdings by speculators and the effects of yen depreciation,” they said.

Other notable gainers on Thursday included heavily weighted Uniqlo chain owner Fast Retailing 9983.T, up 2.5%, Sony Group 6758.T, up 2.9%, and Toyota Motor 7203.T, which added 1.9%.

The standout decliner was Nidec 6594.T, which tumbled by its limit of 22.4% after the electric motor maker revealed improper accounting at the firm.