JKB Financial Services Ltd.

As on : 23-Jul-2026

Market Commentary - Foreign Markets
23-Jul-2026 17:43

Japanese markets rise as AI-driven tech rally boosts chip stocks

Japanese stock markets closed higher on Thursday, with the Nikkei 225 rising 0.46% to 66,422 and the broader Topix index gaining 0.51% to 4,054.

Technology and semiconductor stocks led the rally after strong quarterly results from Alphabet and its higher capital spending plans reinforced expectations of continued global investment in AI infrastructure. Japanese chip-related stocks tracked gains seen in US markets.

However, gains were limited as investors weighed the possibility of an earlier interest rate hike by the Bank of Japan. Market participants also kept a close watch on oil prices after reports that Iran-backed Houthi militants targeted two Saudi Arabian oil tankers in the Red Sea, raising concerns over global energy supplies.

Investors are now awaiting Japan's June consumer inflation data, due on Friday, for further signals on the Bank of Japan's future policy direction.

Among the top gainers, Advantest rose 4.1%, Lasertec gained 5.0%, SoftBank Group advanced 3.8%, and Murata Manufacturing added 2.7%. Financial stocks also performed well, with Mitsubishi UFJ Financial Group up 2.2%, Mizuho Financial gaining 2.8%, and Sumitomo Mitsui Financial Group rising 1.3%.

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