Reuters

Japan’s Nikkei Stock Average Closes at Record High as Chip Stocks Mirror Wall Street Rally (UPDATE 1)

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

Reuters

12:13 JST, October 7, 2025 (updated at 17:02 JST)

TOKYO, Oct 7 (Reuters) – Japan’s Nikkei share average closed at a record high on Tuesday for a third consecutive session, as chip-related stocks tracked upbeat U.S. peers, though the initial momentum eased after traders booked profits from a recent rally.

The Nikkei .N225 held its ground at 47,950.88. Earlier in the session, the index rose up to 1% to a record high of 48,527.33.

The broader Topix .TOPX edged 0.06% higher to 3,227.91.

“Investors booked profits at a high of the Nikkei so the gains were muted, but the momentum is still strong,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

The Nikkei surged 4.8% in the previous session, marking its biggest single-day gain since early April, after Sanae Takaichi was all but confirmed to become the country’s next premier, boosting expectations of renewed fiscal stimulus and loose monetary policy.

“Behind the Takaichi trade, there is strong support from gains of U.S. artificial intelligence-related firms. So, AI-related shares such as Advantest and SoftBank Group would rise regardless of who becomes Japan’s prime minister,” said Shimada.

Chip-testing equipment maker Advantest 6857.T rose 0.64%, while SoftBank Group 9984.T, an investor in AI-related firms, climbed 1.11%, becoming the biggest boost for the Nikkei.

Cable maker Fujikura 5803.T, seen as a bellwether for data center investments, jumped 5.4% to become the top percentage gainer in the Nikkei.

Chip-making equipment maker Tokyo Electron 8035.T reversed early gains to close the trade 1.6% lower.

The S&P 500 .SPX and the Nasdaq .IXIC reached record closing highs in overnight session, as AI-related dealmaking boosted investor sentiment even as the U.S. government shutdown extended through its sixth day.

The market lacked the momentum seen in the previous session, with nearly half of the stocks declining, said Yugo Tsuboi, chief strategist at Daiwa Securities.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 46% fell, 49% advanced and 4% traded flat.