Japan’s Nikkei Stock Average Hits Record High as Tech Stocks Track Wall Street Gains (UPDATE 1)

Reuters

12:23 JST, September 16, 2025 (updated at 16:30 JST)

TOKYO, Sept 16 (Reuters) – Japan’s Nikkei share average closed at a record high for a fourth consecutive session on Tuesday, as investors scooped up chip-related stocks ahead of the U.S. Federal Reserve’s crucial policy decision on Wednesday.

The Nikkei .N225 rose 0.3% to end the day at 44,902.27, after it crossed the key 45,000 level for the first time to hit a high of 45,055.38.

The market was closed on Monday for a public holiday.

The broader Topix .TOPX rose 0.25% to finish at 3,168.36 on Tuesday.

The latest rally was supported by a robust corporate outlook, which prompted analysts to raise target prices for some local firms, and the expectations for a new prime minister following the decision of the current premier, Shigeru Ishiba, to resign, said Hikaru Yasuda, chief equity strategist at SMBC Nikko Securities.

The firm outlook for the global economy, underpinned by hopes of rate cuts by the Fed, also boosted the Nikkei, he said.

The Nikkei may finish the year at about the 45,000 level, but the index could briefly retreat if expectations for the U.S. rate cuts recede and Treasury yields rise, said Yasuda.

“The market expectations for the U.S. rate cuts are fairly strong.”

Shares of chip-testing equipment maker Advantest 6857.T recovered from early losses to rise 1.29%, providing the biggest boost to the Nikkei.

Chip-making equipment giant Tokyo Electron 8035.T advanced 1.9%.

Wafer maker Sumco 3436.T surged 9% to be the biggest percentage gainer in the Nikkei. Chip-related Disco 6146.T and Resonac Holdings 4004.T jumped 8.23% and 6.13%, respectively.

On the other hand, Uniqlo brand owner Fast Retailing 9983.T fell 1.99% to become the biggest drag on the Nikkei.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 66% stocks advanced, 30% fell, and 2% traded flat.