Investors saw a wave of optimism sweep through the Tokyo Stock Exchange on Tuesday, driven by strong performances in key industrial sectors and a standout rally in gaming giant Nexon. A broad advance in Power, Rubber, and Chemical-related shares underscored renewed confidence in Japan’s economic resilience.
The Nikkei 225 closed the session up 0.52%, propelled by a surge in select names. Nexon Co Ltd led the charge, soaring 9.02% to close at ¥2,236. The online game developer’s sharp jump was closely followed by Mitsubishi Estate, which rose 4.81% to ¥2,593, signalling renewed interest in Japan’s real estate recovery. DeNA Co Ltd also joined the winners’ circle with a 3.71% gain, closing at ¥3,635, as sentiment around tech-driven entertainment remained upbeat.
While the broader market pushed higher, a few heavyweights struggled. Advantest Corp slid 3.41% to ¥7,732, Tokyo Gas dropped 2.51% to ¥4,857, and Fujitsu ended the day down 2.24% at ¥2,990.50, highlighting selective profit-taking in defensive and semiconductor-related names.
Market breadth remained encouraging, with advancing stocks outpacing decliners by more than 600. Meanwhile, the Nikkei Volatility Index spiked 11.79% to 28.16—its highest reading in three months—signalling heightened investor anticipation ahead of earnings season.
On the commodities front, oil prices held steady. WTI crude edged down slightly to $69.08 a barrel, and Brent dipped to $72.33. Gold continued its upward trend, gaining 0.21% to reach $3,050.46 a troy ounce, reflecting a cautious shift towards safe-haven assets amid currency softness. The yen saw mild losses against both the US dollar and the euro.
The Tokyo market’s climb reflects solid investor confidence, powered by strong sectoral rotation and strategic plays in high-growth areas like gaming and property.
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.
