FX.co ★ Japanese Shares Jump on Tech Boost

The Nikkei 225 Index rose 2% to climb above 66,300, while the broader Topix Index advanced 0.8% to 4,136 on Monday, marking a second consecutive session of gains for Japanese equities. Technology and artificial intelligence-related stocks led the rally, mirroring Friday’s strong performance by US chipmakers and memory stocks amid improving sentiment toward the semiconductor sector.

Gains in Japanese shares came despite broader market pressure from stronger-than-expected US employment data, which reinforced expectations of a Federal Reserve interest rate hike later this month. At the same time, investors increasingly priced in the likelihood of a rate increase by the Bank of Japan at its September meeting, as policymakers contend with persistent inflation and ongoing yen weakness.

Leading technology names were among the top performers, including Kioxia Holdings (up 7.2%), SoftBank Group (up 6.1%), Advantest (up 2.6%), Fujikura (up 5.9%), and Tokyo Electron (up 5.3%). In contrast, financials and consumer-related stocks lagged the market, with notable declines in Mitsubishi UFJ (down 0.9%) and Nintendo (down 2.2%).