- JP225 rallied from around 67,700 to 69,700 points between 2 PM GMT and 8:45 AM GMT, extending its strong rebound.
- A recovery in South Korean equities helped lift broader Asian markets and provided additional support for Japan's technology sector.
- Despite the rebound in Japanese equities, SoftBank ADRs (SFT.DE) are trading lower today and have now fallen nearly 30% from their recent highs.
- JP225 rallied from around 67,700 to 69,700 points between 2 PM GMT and 8:45 AM GMT, extending its strong rebound.
- A recovery in South Korean equities helped lift broader Asian markets and provided additional support for Japan's technology sector.
- Despite the rebound in Japanese equities, SoftBank ADRs (SFT.DE) are trading lower today and have now fallen nearly 30% from their recent highs.
The Japan 225 futures contract gained more than 2% today, with the continued weakness of the Japanese yen providing an additional tailwind for the country's leading exporters by improving the earnings outlook for overseas sales. Japan's Nikkei 225 rose 1.5%, recovering part of its recent losses, with real estate, banking, and semiconductor materials companies leading the advance.
- Rohm (+14%), SUMCO (+11%), and Kioxia (+9%) were among the strongest performers, suggesting investors are returning to selected semiconductor supply chain stocks after the recent sharp correction.
- Market breadth remained exceptionally strong, with advancing stocks outnumbering decliners by more than three to one on the Tokyo Stock Exchange, indicating broad-based buying rather than gains driven by only a handful of large-cap names.
- The recent 27% decline in the Nikkei Volatility Index to its lowest level in three months points to improving risk appetite and easing concerns about near-term market volatility.
- The broader macro backdrop remains moderately supportive for Japanese equities. Brent crude has recovered above $72 per barrel, the Japanese yen remains weak, and gold has gained 1.5%, reflecting a market environment where demand for defensive assets persists despite improving equity sentiment.
JP225 (H1)
The JP225 futures contract continues to trade below both the 50-period and 200-period Exponential Moving Averages (EMAs), indicating that bulls still need to prove they can regain control of the trend. The key resistance is currently located around 7,000 points, and a sustained breakout above this level could open the door to a move toward 7,200 points, where previous price reactions have formed an important resistance zone.
Source: xStation 5
SoftBank (D1)
Japanese technology giant SoftBank (SFT.DE) has declined by more than 30% from its early June record highs. If the current decline stabilizes around these levels, it could resemble the 1:1 corrective pattern seen in the autumn of 2025. Key support is located near 28, where the 200-day EMA is positioned, while the main resistance lies around 35, where the 50-day EMA coincides with a significant price gap.
Source: xStation 5
Market Wrap: European indices decline amid US - Iran tensions📉 Semiconductors under pressure
📉 US100 loses 1.5%
EURUSD: Fed Pushback Keeps Dollar Supported Despite Softer Inflation Data
Netflix disappoints Wall Street 🚩 Stock drops 9% after disappointing outlook
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
