Japan’s Nikkei Stock Average Ends Higher on Tech Boost, Bank Shares Drag Topix Lower (UPDATE 1)

Reuters

12:48 JST, December 3, 2025 (updated at 17:17 JST)

TOKYO, Dec 3 (Reuters) – Japan’s Nikkei share average rose more than 1% on Wednesday, as tech stocks tracked Wall Street’s overnight gains, while the broader Topix index fell as banks lost ground after a sharp rally.

The Nikkei .N225 rose 1.14% to close at 49,864.68. The Topix .TOPX slipped 0.2% to 3,334.32.

“Investors bought stocks that became cheap and sold those which had risen,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.

Chip-related shares jumped, with technology investor SoftBank Group 9984.T surging 6.38%. Chip-related Advantest 6857.T and Tokyo Electron 8035.T rose 5.3% and 4.73%, respectively.

U.S. stocks closed higher on Tuesday, recording their sixth gain in seven sessions, buoyed by advances in technology shares as expectations that the Federal Reserve would cut interest rates next week remained elevated. .N

Shares of Japan’s biggest banks fell, with Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T slipping 2% each, while Mizuho Financial Group 8411.T fell 1.3%.

Bank shares had rallied earlier this week after Bank of Japan’s Governor Kazuo Ueda gave the clearest hint so far on a rate hike, saying that the central bank would consider the “pros and cons” of rising rates at its December 18-19 meeting.

Auto shares also weighed on the Topix as the market was concerned that recent gains in the yen would cut into profits.

Toyota Motor 7203.T and Honda Motor 7267.T fell 1.31% and 0.76%, respectively, while Nissan Motor 7201.T eased 1.89%

Of the more than 1,600 shares trading on the Tokyo Stock Exchange’s prime market, 26% rose, 69% fell and 3% traded flat.