Tokyo stocks extended their rally on August 13, with the Nikkei Stock Average (225 issues) and the Tokyo Stock Price Index (TOPIX) both advancing, carried by the previous day’s surge in U.S. tech shares. The Nikkei closed at 68,308.59, up 784.53 points (1.16%), reclaiming the 68,000 level on a closing basis for the first time in about a month. TOPIX rose 37.04 points (0.89%) to 4,176.04, setting a record closing high for a second consecutive session. The Yomiuri Stock Index (Yomiuri 333) also gained 289.24 points (0.54%) to 53,828.59, refreshing its record high for the first time since July 6.
The catalyst for the rally was the July U.S. Consumer Price Index (CPI) released the previous day. The year-over-year growth rate narrowed, easing excessive inflation concerns and reducing expectations of an imminent rate hike by the U.S. Federal Reserve (FRB). U.S. markets saw tech-heavy indices climb, and that momentum spilled over into Tokyo. Buying orders were concentrated in artificial intelligence (AI) and semiconductor-related names, with semiconductor testing equipment giant Advantest (6857.T) and other high-priced stocks leading the market higher.
On the Tokyo Stock Exchange Prime Market, stocks that received favorable reactions to earnings results also advanced, with more than 60% of all issues gaining ground. Among the 333 constituents of the Yomiuri 333, 181 issues (more than half) rose. Trading volume totaled 2.4035 billion shares.
The biggest gainer among Yomiuri 333 constituents was printing giant TOPPAN Holdings (7911.T), which surged 10.78%. Murata Manufacturing (6981.T) followed with a 10.25% gain, and Taiyo Yuden (6976.T) rose 6.53%. On the downside, DMG Mori (6141.T) posted the largest decline at 10.41%, followed by Seibu Holdings (9024.T) at 4.98% and Sega Sammy Holdings (6460.T) at 3.93%.
The Nikkei’s outperformance relative to the Yomiuri 333 reflects the strength of AI and semiconductor-related names that carry significant weight in the Nikkei average. Because the Yomiuri 333 is diversified across 333 constituents, the impact of any single sector’s rally on the overall index is relatively smaller compared with the Nikkei.
Market participants also noted that the rise in South Korea’s stock index—which has strong correlation with the Tokyo market and a high weighting of semiconductor stocks—contributed to improved investor sentiment. Against the backdrop of easing U.S. inflation and continued global capital inflows into the tech and semiconductor sectors, Tokyo’s major indices all reached new highs in tandem.
The Nikkei’s recovery to the 68,000 level marks the first such move in about a month. With TOPIX and the Yomiuri 333 simultaneously setting record highs, the breadth of the market’s advance was once again underscored. Going forward, attention will shift to the direction of U.S. monetary policy and the extent to which ongoing domestic corporate earnings announcements provide fundamental support for the market.