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Nikkei Surges to 35-Year High on Tech Giants' Dominance
7 Nov
Summary
- Nikkei index rebounds 1.34% to close at 50,883.68
- Tech and chip firms like Advantest and SoftBank lead the charge
- Nikkei gains 16.64% in October, far outpacing the Topix's 6.2% climb
On November 7, 2025, Japan's Nikkei index rebounded 1.34% to close at 50,883.68, driven mainly by strong performances from tech and chip firms like Advantest and SoftBank Group. This positive run on Wall Street has lifted spirits in Tokyo, easing concerns about tech valuations and sparking relief among investors as corporate earnings impressed.
However, the Nikkei's rise is mostly thanks to a small group of tech heavyweights, which led today's charge after being behind nearly 80% of the prior day's loss. This narrow focus has become more pronounced as the Nikkei rocketed past 50,000, gaining 16.64% in October for its best monthly jump in 35 years, far outpacing the Topix's 6.2% climb.
Beneath the surface, the market remains uneven, with some companies like Konica Minolta leaping 15.45% on a strong profit outlook, while others like Nippon Steel dropping 3.28% after signaling weaker annual profits. This lack of breadth leaves the Nikkei vulnerable to sudden drops, and investors will want to see strength flowing into more sectors for a more durable recovery.
