Global Market: Japan’s Nikkei rallies on semiconductor strength as market volatility eases

Japan’s Nikkei share average surged more than 2% on Monday, led by chip-related stocks that tracked gains among U.S. semiconductor companies in the previous session, while easing market volatility encouraged investors to take on more risk, Reuters reported.

The Nikkei was up 2.28% at 66,500.29 as of 0150 GMT, while the broader Topix gained 0.81% to 4,136.31.

According to Reuters, investors have been encouraged by signs of greater stability in bond yields and the yen, helping reduce market volatility and supporting a shift toward riskier assets.


Chip-testing equipment maker Advantest and semiconductor equipment manufacturer Tokyo Electron each climbed more than 4%. Memory-chip maker Kioxia jumped 6.8%.

The gains came despite a weaker session on Wall Street on Friday, when a stronger-than-expected U.S. jobs report increased expectations that the Federal Reserve could raise interest rates this month. The semiconductor index, however, rose 3.4%, providing a positive lead for Japanese chip stocks.

Kokusai Electric surged 8% after Nikkei, the publisher of the Nikkei 225 index, said on Friday that the chip equipment maker would be added to the benchmark from October as part of its regular reshuffle.

The broader market was more mixed. Sony Group fell 2%, while gaming companies also declined, with Konami Group and Bandai Namco Holdings each losing nearly 2%.

Banking stocks weakened as well, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group both down more than 1%.

Of more than 1,500 companies trading on the Tokyo Stock Exchange’s Prime Market, 48% advanced and an equal proportion declined, while 3% were unchanged.