Japan’s Nikkei Stock Average Ends Higher as Tech Shares Track Nasdaq Gains (UPDATE 1)

Reuters

12:41 JST, December 17, 2025 (updated at 16:27 JST)

TOKYO, Dec 17 (Reuters) – Japan’s Nikkei share average closed higher, rebounding from a two-week low hit in the previous session, as technology stocks tracked overnight gains on the Nasdaq.

The Nikkei .N225 rose 0.26% to close at 49,512.28, after falling as much as 0.6% earlier in the session. The index snapped a two-session losing streak.

The broader Topix .TOPX closed 0.03% lower at 3,369.39.

Chip-testing equipment maker Advantest 6857.T rose 1.43%, providing the biggest boost to the Nikkei. SoftBank Group 9984.T recouped early losses to end 1.3% higher.

Fiber optic cable maker Fujikura 5803.T also changed course to inch 0.15% higher.

U.S. markets offered mixed cues overnight, with the Nasdaq closing higher, while the S&P 500 and Dow Jones Industrial Average ended lower, weighed down by losses in healthcare and energy stocks. .N

“It is hard to make active bets before the Bank of Japan’s policy decision this week. The market has fully priced the interest rate hike at the BOJ’s policy meeting, but investors want to know the pace of the rate hike next year,” said Shota Sando, equity market analyst at Tokai Tokyo Research Institute.

The BOJ is widely expected to raise interest rates by 25 basis points to 0.75% on Friday, a three-decade high, and signal further tightening, closing the year with two hikes despite headwinds from U.S. tariffs and the inauguration of a dovish prime minister.

The Nikkei is likely to trade without a clear direction toward the year-end, fluctuating between small gains and losses as investors take profits after strong advances in technology shares, Sando said. However, he added that demand from individual investors looking to buy on dips should provide support.

Among other stocks, copper smelter Dowa Holdings 5714.T jumped 7% to become the top percentage gainer in the Nikkei, after Daiwa Securities raised its target price.

On the Tokyo Stock Exchange’s prime market, 41% of stocks rose, 54% fell, and 4% were unchanged.