Market Overview
Tokyo equities staged a sharply bifurcated session on Monday, with a powerful rally in technology and semiconductor names contrasting starkly against broad-based selling in automobiles, trading companies, and energy stocks. SoftBank Group led the charge, reportedly overtaking Toyota to claim the top spot in Japan’s market capitalisation rankings, closing at a record high. The yen held relatively steady as investors adopted a wait-and-see posture ahead of anticipated developments in US-Iran diplomatic talks.
Top Gainers
The session’s headline story belonged to SoftBank Group Corp (9984), which surged over 14% — by far the largest single-stock move on the Nikkei 225 — as reports confirmed the conglomerate had displaced Toyota as Japan’s most valuable listed company, with its share price closing at an all-time high. The milestone underscored renewed investor conviction in SoftBank’s AI and technology investment portfolio.
The enthusiasm extended broadly across the semiconductor and electronics supply chain. SUMCO Corporation (3436) gained nearly 9.5%, while Murata Manufacturing (6981), Socionext (6526), and Taiyo Yuden (6976) each advanced approximately 8–9%, reflecting strong demand signals for components tied to AI infrastructure and next-generation devices. Fujitsu (6702) and NEC Corp (6701) also posted meaningful gains of over 8% and 6% respectively, reinforcing the technology services theme. Consulting firm BayCurrent (6532) rose nearly 8%, while cybersecurity specialist Trend Micro (4704) added over 5%.
Top Decliners
The session’s losers were concentrated in sectors sensitive to global trade friction and domestic cost pressures. Denka Company (4061) and Mitsubishi Electric (6503) led declines, falling over 7% each. Japanese automakers continued to face headwinds, with Mitsubishi Motors (7211) and Nissan Motor (7201) falling more than 6% and 5% respectively — consistent with reports of ongoing Middle East tensions complicating supply chains and fuelling input cost inflation. Shiseido (4911) shed nearly 7%, while trading house Marubeni (8002) and lifestyle retailer Ryohin Keikaku (7453) each declined over 5%. INPEX Corporation (1605) fell over 5% despite elevated energy geopolitical risk, suggesting profit-taking after prior gains.
Sector Snapshot
The sectoral divide told a clear story of new economy versus old economy. Telecommunications was the top-performing sector, followed by Services and Nonferrous Metals, buoyed by the SoftBank-led rally and sustained demand for advanced materials. Ceramics and Electrical Equipment also posted gains, consistent with the broader semiconductor component theme.
On the losing side, Shipbuilding and Mining were the worst-performing sectors, declining over 5%, with Kawasaki Heavy Industries dragging the former lower. Automobiles, Trading Companies, and Pharmaceuticals all fell sharply. Construction and Real Estate also weakened, with industry groups convening to address a wave of redevelopment project reviews. Meanwhile, Oil & Gas declined over 3% even as Middle Eastern tensions continued to drive food and commodity price increases domestically, with reports indicating more than 10,000 food product price hikes for the fifth consecutive year.
Source: Tokyo Stock Exchange data | Japan Economic News