Tokyo stocks ended mixed on July 30, with the Nikkei 225 closing at 61,683.96, up 0.4%, as gains in electronics and selected semiconductor-related shares offset selling in financial stocks ahead of the Bank of Japan’s policy decision.
Tokyo stocks diverged sharply on July 29, with the Nikkei 225 closing at 61,434.19, down 930.73 points, or 1.49%, as selling in artificial intelligence and semiconductor-related heavyweights continued, while the broader TOPIX rose as investors bought back banks, domestic-demand shares and selected value stocks.
Japan's national average minimum wage is set to rise by 55 yen, or 4.9%, to 1,176 yen per hour in fiscal 2026 after a labor ministry panel agreed on guidelines for this year's increase.
The Nikkei Stock Average plunged 2,566.27 yen, or 3.9%, to close at 62,364.92 on July 28 as a sharp fall in South Korean stocks and growing concerns over intensifying competition in the global semiconductor industry triggered heavy selling in artificial intelligence and chip-related shares.
Japan is unlikely to end its heavy reliance on Middle East crude oil, even as geopolitical tensions expose the risks of depending on the region for more than 90% of its imports, leaving the country to pursue a gradual mix of diversification, electrification, renewable energy and technological innovation.
Tokyo stocks rebounded on July 27, with the Nikkei 225 closing at 64,931.19, up 320.04 points, or 0.50%, as easing concern over the Middle East conflict supported broad buying across domestic-demand and value shares, although semiconductor weakness continued to cap the market’s recovery.
Honda Motor and Nissan Motor have entered final-stage negotiations to jointly develop an operating system that will serve as the core software for their next-generation vehicles, with an agreement targeted by the end of August.
Japanese investors may be starting to redirect money from semiconductor and memory-related stocks toward automakers and other value shares, as concerns grow that soaring memory prices, increased Chinese production and the search for cheaper suppliers could weaken the technology rally.