Japan’s Nikkei surged as the yen weakened and chip shares rebounded on strong earnings from Taiwan’s TSMC. Exporters gained, while semiconductor stocks reacted to global industry signals amid cautious investor sentiment.

Japan’s benchmark Nikkei 225 index rebounded to post strong gains, supported by a weakening yen and positive earnings results from Taiwan Semiconductor Manufacturing Company (TSMC). The broader Topix index also rose, with sentiment turning more positive in tech-heavy and export-reliant sectors.

The Japanese yen depreciated by as much as 0.5% against the U.S. dollar, nearing a multi-month low. This decline enhanced the overseas revenue potential for Japanese exporters, driving equity gains in automotive, electronics, and semiconductor stocks.

Investor sentiment received a significant boost when TSMC, the world’s leading contract chipmaker, reported quarterly earnings that exceeded analyst expectations. This helped reverse the negative tone set earlier by ASML Holding, which issued a revenue growth warning due to uncertainty over U.S. tariff policies affecting chip plant investments.

In the Tokyo market, Sumco, a key silicon wafer supplier to the semiconductor industry, jumped 7%, leading percentage gains on the Nikkei. SoftBank Group, an influential AI investor and tech holding firm, rose 2.3%, contributing the most index points to the day’s gain.

However, some chip equipment makers lagged. Advantest, a global leader in chip-testing systems, dipped 0.8%, while Lasertec, which produces vital chip inspection tools, dropped 4.8%. These declines reflected broader concerns about slowing capital expenditure in the global semiconductor ecosystem.

Retail giant Seven & i Holdings, which operates the 7-Eleven convenience store chain, was the steepest loser on the Nikkei, sliding 9.2% after Canada’s Alimentation Couche-Tard ended its takeover interest in the Japanese firm.

Meanwhile, the mining sub-index, part of the Topix sectoral breakdown, posted the largest drop as global oil prices continued to struggle. Brent crude remained below USD 70 per barrel, pulling oil explorers and coal companies lower. The oil and coal sub-index shed 0.8%.

Despite some sectoral pressure, the equity market remains supported by a favorable foreign exchange environment and optimism around semiconductor demand normalization. Analysts suggest that while global chip equipment demand remains uneven, Japan’s strategic positioning in materials and AI investment offers mid-term resilience.

Read the full article here: Currency and Chips: The Dual Forces Steering Japan’s Equity Markets — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).