Japan's Nikkei ends at over 2-month high as markets shrug off Venezuela tension

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 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 rose 2.01% ‌to a record close of 3,477.52.


Shares of chip-testing equipment maker Advantest jumped 7.84%, while the chip-making equipment maker Tokyo Electron 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 rose 4.89% and fibre optic cable maker Fujikura climbed 5.76%.

Defence-related shares surged, with IHI and Mitsubishi ‍Heavy Industries ⁠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 defence stocks," Shimada said.

All but two of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with the nonferrous metals sector jumping nearly 5% to become the top performer.

Software testing services firm Shift and furniture and kitchen goods retailer Nitori Holdings dropped more than 2% each, ranking as the index's biggest percentage losers.