Japanese stocks climbed on renewed tech optimism, supported by easing geopolitical tensions and a dovish tone from the Bank of Japan. The upbeat sentiment boosted confidence in Japan’s equity market, especially in the tech sector.

Nikkei 225 jumps on global tech rally

Japan’s benchmark Nikkei 225 index rose sharply on Thursday, climbing 1% to finish at 39,349.15—its highest closing level since February.

During the session, the index briefly touched an intraday high of 39,389.65, driven by a strong global rally in technology stocks following new all-time highs for US chipmaker Nvidia.

Nvidia regained its position as the world’s most valuable publicly listed company, igniting renewed optimism across AI and semiconductor sectors.

Japanese tech shares tracked the momentum, with Advantest jumping 4.3%, Tokyo Electron up 1.7%, Lasertec gaining 1.5%, and SoftBank Group advancing 2.8%.

Geopolitical easing and Bank of Japan policy support risk appetite

Investor sentiment across Asia improved as geopolitical tensions showed signs of cooling.

The Iran–Israel ceasefire has remained intact, while news of upcoming formal talks between the US and Tehran offered additional relief to global markets, including Japan’s.

Domestically, the latest Bank of Japan (BoJ) Summary of Opinions from its June meeting revealed a preference among policymakers to maintain accommodative monetary policy.

Concerns over fragile global growth and trade challenges led several members to argue against premature tightening.

This dovish stance helped ease pressure on the yen and offered a favourable backdrop for Japanese equities—particularly in rate-sensitive sectors such as technology and industrials.

Continued policy support from the BoJ could offer further upside for the Nikkei, although volatility in the yen or tightening signals from overseas central banks may trigger profit-taking.

Technical analysis: Nikkei breaks higher

On the 15-minute chart, the Nikkei 225 has broken out convincingly above the 39,000 resistance level, confirming a bullish move.

The MACD indicator shows a positive crossover, with increasing histogram bars signalling strong upward momentum.

Picture: Nikkei jumps on tech strength and BOJ stability bets, as seen on the VT Markets app.

The index is trading above all key short-term moving averages (5, 10, and 30), reinforcing a firm intraday bullish bias.

The morning low of 38,957.65 marked a clear turning point, followed by sustained buying interest throughout the day.

Immediate resistance lies between 39,400 and 39,500.

A successful breakout above this zone could pave the way for a push towards the 40,000 psychological barrier, in line with mid-July resistance projections and recent Reuters forecasts.

On the downside, initial support sits near 39,000, with stronger levels around 38,800.

However, any reversal in global risk appetite or a sudden BoJ policy shift could see the Nikkei pull back toward the 38,000 level.

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