Reuters

Japan’s Nikkei Stock Average Ends at over 2-Month High as Markets Shrug off Venezuela Tension (UPDATE 1)　

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

Reuters

12:45 JST, January 5, 2026 (updated at 16:08 JST)

TOKYO, Jan 5 (Reuters) – Japan’s Nikkei closed at a more than two-month high on the first trading day of 2026, led by chip-related stocks, as investors brushed off the potential impact of U.S. military action in Venezuela.

The Nikkei .N225 jumped nearly 3% to 51,832.8 on Monday, its highest close since October 31. The benchmark also marked its highest daily rise since October 20.

The broader Topix .TOPX rose 2.01% to a record close of 3,477.52.

Shares of chip-testing equipment maker Advantest 6857.T jumped 7.84%, while the chip-making equipment maker Tokyo Electron 8035.T climbed 7.6%. Chip-related shares tracked a 4% gain in the U.S. semiconductor index on Wall Street’s opening session of the year on Friday.

“The market turned risk-on as if uncertainties over the impact of the U.S. action on Venezuela had been removed,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

The surge in Japanese equities followed a dramatic weekend of events, which saw the U.S. capture Venezuelan President Nicolas Maduro. U.S. President Donald Trump said on Saturday he was putting Venezuela under temporary American control.

“Monday’s session mirrored what happened to the Nikkei last year, where chip-related shares led the market. This may become the trend of this year as well,” Shimada said.

Technology investor SoftBank Group 9984.T rose 4.89% and fiber optic cable maker Fujikura 5803.T climbed 5.76%.

Defense-related shares surged, with IHI 7013.T and Mitsubishi Heavy Industries 7011.T climbed 8.99% and 8.39%, respectively.

“The U.S. capture of the Venezuelan president raised fears for geopolitical risks, but that became a tailwind for defense stocks,” Shimada said.

All but two of the Tokyo Stock Exchange’s 33 industry sub-indexes rose, with the nonferrous metals sector .INFRO.T jumping nearly 5% to become the top performer.

Software testing services firm Shift 3697.T and furniture and kitchen goods retailer Nitori Holdings 9843.T dropped more than 2% each, ranking as the index’s biggest percentage losers.