Japan’s equity markets edged higher as a mix of industrial strength and video game enthusiasm propelled the Nikkei forward, even as other sectors slipped. Behind the modest rise lies a strategic shift in investor sentiment, with eyes turning to global trade developments.
Japan’s Nikkei Stock Average closed 0.3% higher at 35,725.87, driven by strong performances in heavy industry and video game shares. IHI led the industrial charge, surging 5.7%, while Konami added 2.8%, reflecting renewed confidence in the gaming sector. These gains helped offset notable declines in other sectors—Eisai fell 4.4% and Kansai Electric Power shed 3.4%, weighing on defensive plays like pharmaceuticals and utilities. The broader Topix index dipped 0.4% to 2,650.29, suggesting selective sector rotation as investors adjusted positions. Meanwhile, bond markets saw a pullback in yields, with the 10-year Japanese government bond yield falling 3.5 basis points to 1.465%, pointing to increased demand for safety amid anticipation surrounding forthcoming U.S. tariff announcements.
The Nikkei’s upward move reflects Japan’s industrial resilience and the continued appeal of video game equities, even as defensive sectors lag. The market’s shifting dynamics highlight investor sensitivity to global policy cues and sectoral rotations within Asia’s largest developed economy.
Fidelity Japan Trust PLC (LON:FJV) aims to be the key investment of choice for those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable price’ (GARP) investment style and approach – which involves identifying companies whose growth prospects are being under-appreciated or are not fully recognised by other investors.
