The Japanese stock market recorded another positive performance on Wednesday's trading (22/7/2026), posting gains for the second consecutive day. The movement of the main index was supported by investment enthusiasm in the technology sector and semiconductor chip manufacturers, triggered by anticipation of upcoming global corporate earnings reports.

At the close of trading, the benchmark Nikkei 225 index appreciated by 1.75 percent to 67,388.70. In line with this, the broader Topix index also climbed 1.19 percent to close at 4,062.66.

This positive sentiment was inseparable from global market movements, particularly Wall Street, where the Philadelphia Semiconductor Index surged 5.2 percent in the previous session. Market participants appeared to start ignoring the shadows of geopolitical tensions in the Middle East and the dynamics of US protectionist tariff policies. Additionally, the rally in chip stocks in South Korea also spilled optimism over to the Tokyo capital market.

Maki Sawada, a strategist at Nomura Securities, explained that the market's focus is currently on the financial performance of tech giants. According to her, if the net profit reports of these companies exceed estimates amid rising operating cost pressures, it has the potential to become a new driving force for Asian stock markets, including Japan.

On the domestic macroeconomic side, Japan's trade performance was observed to be solid. The latest data showed that the value of Japanese exports in June grew by 19.3 percent year-on-year, beating market consensus projections. Meanwhile, import activity also increased by 25.4 percent, reflecting the resilience of domestic demand, which is believed to be able to maintain the profitability prospects of local issuers.

In Nikkei's sectoral movement, as many as 135 stocks managed to gain, while 89 stocks were under pressure. The highest gain was led by Mitsui Kinzoku, which skyrocketed 12.02 percent, followed by Taiyo Yuden at 10.39 percent, and Kioxia Holdings, which rose 10.38 percent. On the other hand, Mercari shares led the decline with a 5.54 percent correction, followed by Tokyo Disneyland operator Oriental Land, which fell 4.94 percent, and Recruit Holdings, which weakened by 4.88 percent.