The Japanese stock market recorded a stellar performance at the close of trading at the end of the week, Friday (31/7/2026). The Nikkei 225 Index jumped significantly by 2,494.59 points or strengthened by 4.03 percent to the level of 64,362.02, supported by global enthusiasm in the technology sector and the return of investor buying interest.
Throughout the trading session, the movement of the index was observed to be highly dynamic. After opening slightly higher at 61,957.10 from the previous day's close of 61,867.43, the index continued to climb until it reached a daily high of 65,364.73. Meanwhile, the daily low touched 61,948.23 early in the session, while the 52-week high record stood at 72,831.73.
The Tokyo stock exchange's drastic surge was triggered by the release of the financial report of tech giant Microsoft on Wall Street. The solid earnings report managed to ease global market concerns over the long-term profitability of massive investments in artificial intelligence (AI), which subsequently triggered massive buying action.
The impact of this global AI sentiment was immediately felt by semiconductor and tech giants in Japan. Share prices of Advantest, a leading chip testing equipment maker, surged by up to 18 percent. This positive trend was followed by Tokyo Electron, which gained 9.3 percent, and SoftBank Group, which posted a fantastic increase of 15 percent.
In addition to external factors, the market's strengthening was also supported by speculation that the Bank of Japan (BOJ) will maintain its low interest rate policy. This move preserves the stability of the yen exchange rate, which benefits exporters' profit margins. This momentum was also utilized by investors for bargain hunting after the index had corrected due to market panic in previous weeks.
