Japan’s Nikkei Stock Average Escapes Losses as Tech Share Gains Offset Drag from Strong Yen (UPDATE 1)

Reuters

12:38 JST, January 28, 2026 (updated at 16:30 JST)

TOKYO, Jan 28 (Reuters) – Japan’s Nikkei share average ended slightly higher on Wednesday, buoyed in the final half-hour of trade by stronger-than-expected orders at Dutch chip equipment maker ASML.

The Nikkei .N225 had languished with losses as deep as 1% throughout the session as a sharply stronger yen JPY= weighed on Japan’s exporter-heavy stock market. However, the announcement of ASML’s ASML.AS bookings – the most-watched metric in the chip industry – instantly saw the index erase those declines.

The Nikkei ended up 0.05%% at 53,358.71.

The broader Topix .TOPX, however, did not benefit as much, and finished the day 0.8% lower at 3,535.49. Value shares .TOPXV sank 1.1%, outpacing the 0.5% fall among growth stocks .TOPXG.

Artificial intelligence-related stocks had already been outperforming the broader market, notably cable makers Fujikura 5803.T and Furukawa Electric 5801.T, which soared 9.3% and 11.7%, respectively. That followed news overnight that Meta Platforms META.O will pay Corning up to $6 billion to provide fiber-optic cables for its AI data centers.

“In response to this, expectations are growing, particularly among major technology companies, that the spread of AI will lead to solid profits,” said Wataru Akiyama, a strategist at Nomura Securities.

“As earnings season picks up pace in both Japan and the U.S., confirming the strength of results for AI and semiconductor-related stocks will be crucial.”

SoftBank Group 9984.T climbed 3.7% on media reports it is in discussions to invest up to $30 billion more in ChatGPT maker OpenAI.

However, Shin-Etsu Chemical 4063.T, a silicon wafer producer, tumbled 11.2% following disappointing financial results.

Automakers posted losses as the strong yen eroded the value of offshore revenues. Toyota 7203.T dived 3.2% and Mazda 7261.T tumbled 3.9%.