Japanese stock indices rose on the 21st, with the Nikkei 225 climbing 2,091.07 points (3.26%) to close at 66,232.19 and the TOPIX gaining 95.74 points (2.44%) to finish at 4,014.95. The rally was driven by rebound buying in semiconductor and artificial intelligence stocks that had declined sharply the previous week. The gains coincided with strong performances in regional markets, as South Korea's KOSPI rose over 3% and Taiwan's TAIEX climbed over 4% on the same day, reflecting renewed investor appetite for technology-heavy indices across Asia.
Semiconductor Stocks Lead Nikkei 225 Recovery on the 21st
Semiconductor and AI-related stocks attracted strong buying interest during the trading session on the 21st. Advantest's share price jumped nearly 8% by the market close. Tokyo Electron rose over 2%, while SoftBank Group climbed more than 5%. Ibiden gained over 10% and Taiyo Yuden advanced more than 6%. Kioxia's stock surged over 18%. An official from an online brokerage firm stated that individual investors' short-term rebound buying was stronger than usual.
Korean and Taiwanese Market Gains Support Japanese Indices
The Nikkei 225's performance on the 21st showed deep correlation with South Korea's KOSPI index, which rose over 3% on the same day, providing positive momentum for Japanese stocks. Taiwan's TAIEX, which has a high concentration of technology stocks, climbed over 4%, further supporting the bullish sentiment in Japan's equity market.
Goldman Sachs Analyst Highlights Semiconductor Stock Volatility
Concerns about overheating in AI and semiconductor stocks that had risen in the first half of the year remain present in the market. Vincent Lin, co-head of Prime Insights and Analytics at Goldman Sachs, stated: "Amid high volatility in semiconductor, memory, and AI infrastructure-related stocks, the continued large-scale selling of these stocks since early June suggests that long positions held by technology investors have significantly decreased. Signs of selling pressure are beginning to emerge in some stocks."
Japanese Bond Yields Rise Across Maturities
Japanese government bond yields rose across all maturities on the 21st. As of 3:33 p.m., the 10-year yield traded at 2.7257%, up 1.33 basis points from the previous session. The 30-year yield rose 1.53 basis points to 3.8917%, while the 2-year yield climbed 0.38 basis points to 1.4383%.
FAQ
What caused the Nikkei 225 to rise on the 21st?
The Nikkei 225 rose 2,091.07 points (3.26%) to close at 66,232.19 on the 21st, driven by rebound buying in semiconductor and AI stocks that had declined the previous week. Strong performances in South Korea's KOSPI (up over 3%) and Taiwan's TAIEX (up over 4%) also supported the rally.
Which semiconductor stocks gained the most on the 21st?
Kioxia led gains with an 18% jump, followed by Ibiden (+10%), Advantest (+8%), Taiyo Yuden (+6%), SoftBank Group (+5%), and Tokyo Electron (+2%). These stocks attracted strong buying interest from individual investors seeking short-term rebounds.
