Japanese stocks rose on the 9th, with the Nikkei 225 index climbing 1,144.04 points (1.71%) to 67,963.09 as of 9:17 AM, driven by overnight buying in US technology stocks. The rally followed US President Donald Trump's decision to soften his rhetoric on Iran after initially expressing impatience, prompting investors to purchase tech shares at lower prices. The Nikkei 225 had fallen to the 66,000 level the previous day but recovered above 67,000 at the opening and briefly topped 68,000 during morning trading.
US Tech Rally and Semiconductor Stocks Drive Nikkei Gains
The Topix index rose 17.03 points (0.43%) to 4,023.46. The index opened lower but rebounded in early trading. Overnight in the US market, the Philadelphia Semiconductor Index gained 2.23% as investors bought technology stocks at discounted prices after Trump indicated a full-scale conflict with Iran was unlikely despite his earlier strong statements.
In the Japanese market, buying flowed into artificial intelligence (AI) and semiconductor-related stocks in early trading. SoftBank Group's share price rose nearly 2%, while Taiyo Yuden and Ibiden jumped 3% and over 4%, respectively.
US-Iran Tensions and Rising Oil Prices Weigh on Sentiment
Market participants noted that escalating tensions between the US and Iran could limit further gains in Japanese stocks. Early on the 9th, the US Central Command announced it had begun additional airstrikes on Iran. Trump subsequently posted on Truth Social that if Iran attacks ships passing through the Strait of Hormuz again, there would be much stronger retaliation.
Market participants forecast that two consecutive days of military tensions between the two sides and rising oil prices could dampen investor sentiment. At the same time, West Texas Intermediate (WTI) crude oil for August delivery traded at $74.53 per barrel, up 1.37% from the previous session.
Dollar-Yen Exchange Rate Declines During Trading Session
The dollar-yen exchange rate quickly reversed to a decline during intraday trading on the 9th. The exchange rate traded at 162.392 yen, down 0.08% from the previous session.
FAQ
What happened to the Nikkei 225 index on the 9th?
The Nikkei 225 index rose 1,144.04 points (1.71%) to 67,963.09 as of 9:17 AM on the 9th. The index recovered above 67,000 at the opening after falling to 66,000 the previous day and briefly topped 68,000 during morning trading.
Why did Japanese stocks rise on the 9th?
Japanese stocks rose following overnight gains in US technology stocks. US President Donald Trump softened his rhetoric on Iran after initially expressing impatience, which prompted investors to buy tech shares at lower prices. The Philadelphia Semiconductor Index rose 2.23%, and this momentum carried over to Japanese AI and semiconductor-related stocks.
How did geopolitical tensions affect the Japanese market on the 9th?
The US Central Command announced additional airstrikes on Iran early on the 9th, and Trump warned of stronger retaliation if Iran attacks ships in the Strait of Hormuz again. Market participants noted these escalating tensions and rising oil prices (WTI crude up 1.37% to $74.53 per barrel) could limit further stock gains and dampen investor sentiment.
