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Frank Diaz

Tokyo Stock Exchange Gains on Weaker Yen and Strong Corporate Earnings

Tokyo (Reuters) – Japan’s Nikkei share average rose by midday Tuesday, supported by a softer yen and robust domestic corporate earnings, though declines in semiconductor-related stocks limited gains.

By the lunch break, the Nikkei was up 0.5% at 39,748.13, while the broader Topix climbed 1% to 2,766.36.

Positive sentiment was driven in part by record highs on Wall Street on Monday, where Trump-linked stocks saw continued gains. In Tokyo, a weaker yen buoyed Japan’s export-focused companies, with automakers leading the rally. Toyota Motor and Suzuki Motor advanced 3.4% and 4%, respectively.

Despite some recent revenue impacts for automakers due to production delays, analysts like Maki Sawada from Nomura Securities see the yen’s depreciation as a potential “tailwind for future performance” in the sector. The transport equipment sector, including Toyota, was among the top performers, up 2.9%.

Financial stocks also rose, spurred by positive earnings reports from major banks. The banking sector gained about 2.2%, with Mizuho Financial Group set to report results later this week.

Investors were also watching earnings announcements from Nikkei heavyweights like SoftBank Group, a major investor in AI startups, and Tokyo Electron, a chip-manufacturing equipment leader, expected after market close.

However, semiconductor-related stocks were a drag on the Nikkei following a 2.5% decline in the Philadelphia Semiconductor Index on Monday. The sector faced pressure after a Reuters report indicated that the U.S. had ordered Taiwan Semiconductor Manufacturing Co. to halt shipments of advanced chips to Chinese customers. Chip-testing equipment maker Advantest dropped 2.7%, Tokyo Electron fell 1.8%, Lasertec slipped 3.6%, and Disco Corp lost 2.1%.

Among other notable gainers, staffing agency Recruit Holdings rose 5.1% after raising its profit forecast on Monday.



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