Japanese stock market indices posted strong gains on the 15th, driven by semiconductor sector strength. The Nikkei 225 rose 1,008.01 points (1.49%) to close at 68,751.51, while the Topix index gained 49.14 points (1.22%) to 4,088.12, according to Yonhap Infomax World Stock Index data. The rally was fueled by US June consumer price index (CPI) data coming in below market expectations, which eased concerns about further interest rate hikes. Daiwa Asset Management chief strategist Kazurei Takebe stated that weakening US rate hike expectations restored investor sentiment, with many market participants feeling relieved by the softer-than-expected June CPI. The gains mirrored strength in Taiwan's Taiex and South Korea's KOSPI, where AI and semiconductor stocks attracted buying interest throughout the Asian trading session.
Semiconductor Stocks Lead Japanese Market Rally
AI and semiconductor-related stocks drove the Japanese market's advance. Ibiden's share price jumped over 7% by market close, while Taiyo Yuden climbed nearly 7%. Kioxia and Advantest both rose more than 5%, and Fujikura gained over 6%. Shin-Etsu Chemical, which focuses on semiconductor wafers as its core business, advanced over 2%.
Goldman Sachs analyst Daiki Takayama commented on AI-related stock investments, projecting that the value of electronic components and electronic materials will rise in the first half of 2026, with supply-demand imbalances potentially intensifying in the wafer, analog semiconductor, and power semiconductor markets excluding China in the second half.
ASML Reports Strong Q2 Results and Raises Full-Year Guidance
Dutch semiconductor equipment manufacturer ASML announced second-quarter revenue and net profit exceeding market expectations and raised its full-year net sales forecast. Tokai Tokyo Intelligence Lab chief analyst Ryotaro Sawada stated that the situation does not appear straightforward, noting that the ratio of skeptics to optimists stands at approximately 6 to 4, with market participants calmly observing whether the upward momentum in AI-related stocks will continue.
Japanese Bond Yields Show Mixed Performance
Japanese government bond yields displayed mixed movements. According to Yonhap Infomax overseas interest rate data, as of 3:31 PM, the 10-year yield fell 1.46 basis points from the previous session to 2.6888%. The 30-year yield rose 2.14 basis points to 3.7558%, while the 2-year yield increased 1.23 basis points to 1.4344%.
FAQ
What drove Japanese stocks higher on the 15th?
Japanese stocks rose on the 15th primarily due to semiconductor sector strength and relief from US June CPI data coming in below market expectations, which reduced concerns about further interest rate hikes.
Which semiconductor stocks showed the strongest gains in Japan?
Ibiden and Taiyo Yuden led gains with increases exceeding 7%, followed by Kioxia and Advantest rising over 5%, Fujikura climbing over 6%, and Shin-Etsu Chemical advancing over 2%.
What did ASML announce regarding its financial performance?
ASML reported second-quarter revenue and net profit that exceeded market expectations and raised its full-year net sales forecast.
