{"id":26441,"date":"2025-07-15T08:51:12","date_gmt":"2025-07-15T08:51:12","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=26441"},"modified":"2025-07-15T08:51:12","modified_gmt":"2025-07-15T08:51:12","slug":"nikkei-extends-gains-as-chip-sentiment-reignites","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nikkei-extends-gains-as-chip-sentiment-reignites\/","title":{"rendered":"Nikkei Extends Gains as Chip Sentiment Reignites"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx-86-1024x559.png\" alt=\"\" class=\"wp-image-20961\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei 225 ends 0.55% higher at 39,678.02<\/li>\n\n\n\n<li>Semiconductor and data center stocks rally after Nvidia news<\/li>\n\n\n\n<li>Domestic political uncertainty and U.S. CPI data keep traders cautious<\/li>\n\n\n\n<li>Short-term technicals suggest momentum toward the 40,000 mark<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japan\u2019s <strong>Nikkei 225<\/strong> climbed on Tuesday, closing <strong>0.55% higher at 39,678.02<\/strong>, as renewed optimism in the semiconductor space lifted Tokyo equities. The gains came despite early hesitation from traders still digesting political risk at home and awaiting critical inflation data from the U.S.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bank of Japan officials are likely to consider raising at least one of their inflation forecasts at a policy meeting later this month, after rice and food-related prices rose more than expected, according to people familiar with the matter. <a href=\"https:\/\/t.co\/mIMNI8H8xT\">https:\/\/t.co\/mIMNI8H8xT<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1944610062057566526?ref_src=twsrc%5Etfw\">July 14, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Much of the session\u2019s strength stemmed from Nvidia\u2019s announcement that it will resume sales of its <a href=\"https:\/\/t.co\/XB1xXg7LiZ\" target=\"_blank\" rel=\"noopener\" title=\"\">H20 AI chips to China<\/a>, a move seen as a positive signal for Japan\u2019s tech-heavy index<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Caution Persists Ahead of Key Data and Domestic Elections<\/h2>\n\n\n\n<p>Despite the rally, broader participation was tepid. The <strong>Topix<\/strong> managed just a <strong>0.09% gain<\/strong>, and traders remain wary of both global and domestic uncertainties.<\/p>\n\n\n\n<p>All eyes are now on the <a href=\"https:\/\/www.bls.gov\/cpi\/\" target=\"_blank\" rel=\"noopener\" title=\"\">U.S. Consumer Price Index (CPI)<\/a> data due later today, which could alter global rate expectations. A softer print may spark a global risk rally, while a surprise to the upside could weigh heavily on equities.<\/p>\n\n\n\n<p>Domestically, Japan faces a critical upper house election on July 20, where Prime Minister Kishida\u2019s Liberal Democratic Party and its partner Komeito risk losing influence. A defeat could empower opposition factions pushing for sales tax cuts, introducing policy volatility at a time when stability is crucial.<\/p>\n\n\n\n<p>Among the few losers on the Nikkei, Daikin Industries slipped 2.6%, becoming the session\u2019s biggest drag as some traders rotated out of defensive names.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The Nikkei 225 has broken out above a short-term consolidation zone around 39,580, pushing into fresh intraday highs at 39,645.65. The moving averages (5, 10, 30) are in clean bullish alignment, indicating healthy short-term momentum, and the price is currently riding the upper band of this breakout. A new bullish MACD crossover adds confirmation, with histogram bars expanding and suggesting sustained upside interest.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-13.jpg\" alt=\"\" class=\"wp-image-26442\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Nikkei surges past key resistance at 39,580 as yen weakness, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>If the breakout holds, the index could extend toward 39,750 and possibly retest the psychological 39,900 zone next. However, a return below 39,580 may signal a false breakout, exposing the index to a correction toward 39,420 support.<\/p>\n\n\n\n<p>This rally comes as Japanese tech stocks rebound, the yen weakens beyond 158 against the dollar, and the BOJ signals <a href=\"https:\/\/t.co\/Sgmw15Q4BG\" target=\"_blank\" rel=\"noopener\" title=\"\">no change to its dovish stance<\/a>. Global sentiment is also aiding risk assets after Powell hinted the <a href=\"https:\/\/t.co\/TnSy0gVDSd\" target=\"_blank\" rel=\"noopener\" title=\"\">Fed may ease policy by September<\/a>, fueling appetite for equities. Japan\u2019s earnings season kicks off this week, which could inject volatility and provide further directional cues for the Nikkei.<\/p>\n\n\n\n<p>If the broader index begins to reflect the strength of its semiconductor leaders, bulls may have the firepower needed to push through the next psychological threshold.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nikkei 225 closes higher at 39,678.02 on chip-led gains after Nvidia\u2019s China pivot. Domestic politics and U.S. inflation data remain in focus. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,30],"class_list":["post-26441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/26441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=26441"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/26441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20961"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=26441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=26441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=26441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}