Tokyo Stocks Soar on Semiconductor Rally, Nikkei 225 Hits 64,362.02
The Nikkei 225 index in Tokyo surged 4.03% to close at 64,362.02 on Friday, July 31st, marking one of its strongest single-session gains this year.
The rally was fueled by a powerful rebound in semiconductor stocks, which were carried forward from the momentum seen on Wall Street the previous day. The Philadelphia Semiconductor Index skyrocketed over 8% and the Nasdaq Composite climbed nearly 3%, following Microsoft's blowout earnings and upbeat AI-spending forecast.
Sumco, a leading supplier of silicon wafers to the semiconductor industry, led the session with a surge of more than 17%. Other chip-related stocks, including Advantest and Mitsui Kinzoku, also posted double-digit gains. The broader Topix index advanced 1.29% to close at 4,003.30 points.
The Bank of Japan's decision to leave interest rates unchanged at 1%, keeping borrowing costs at their highest level since September 1995, was widely expected and did not deter the market's enthusiasm for chip-related stocks. Governor Kazuo Ueda's press conference offered no fresh signals on future policy moves, but reinforced market expectations that any further tightening would be gradual rather than abrupt.
The yen, which had strengthened sharply on Thursday after reported intervention by Japanese authorities to prop up the currency, drifted back above 160 by Friday morning. The intervention-driven volatility continued to affect export-oriented stocks, with Toyota and Honda facing modest currency-related headwinds.