Reuters

Rebounding Yen Sinks Japan Stocks despite Chip Share Rally

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

Reuters

16:42 JST, December 24, 2025

TOKYO, Dec 24 (Reuters) – Japanese equities slumped on Wednesday under the weight of a strengthening yen, sending the Nikkei share average to its first loss in four sessions despite robust gains for chip stocks.

The tech-heavy Nikkei .N225 ended the day down 0.1% at 50,344.10, reversing an earlier advance.

The broader Topix .TOPX slid 0.5% to 3,407.37.

A stronger yen slashes the value of offshare sales for the country’s many heavyweight exporters, with automakers notable underperformers on the day.

Toyota 7203.T sank 1.8%, and Subaru 7270.T lost 1.2%. Electronics giants Sony 6758.T and Nintendo 7974.T declined 1.9% and 0.8%, respectively.

Financial firms were also standout losers, as they gave back some of the big gains that followed the Bank of Japan’s decision to raise interest rates to a three-decade high on Friday. Higher interest rates boost earnings from lending and fixed income holdings.

Insurers .IINSU.T lost 1.6% as a group, while banks .IBNKS.T dropped 1%.

The Nikkei fell despite a big boost from heavily weighted semiconductor equipment maker Advantest 6857.T, which added 127 points to the index with a 2.5% jump.

Tokyo Electron 8035.Trose 0.7%, while smaller rival Screen Holdings 7735.T surged 10% to be the Nikkei’s biggest percentage gainer after Morgan Stanley MUFG Securities raised its price target on the stock.

Chip stocks were supported by gains for Wall Street peers overnight, with the Philadelphia SE semiconductor index .SOX climbing 0.5% to mark a fourth straight session of gains. The S&P 500 .SPXnotched a record high.

“Japanese chip-related shares are tracking U.S. peers and lifting the overall market,” and the Nikkei’s outperformance of the Topix is evidence of that, said Wataru Akiyama, a strategist at Nomura Securities.

But with trading thinned by holidays in most overseas markets to end the week, big moves in Japanese equities are unlikely, he said.

Japanese markets are open Thursday and Friday as usual.