Japan’s Nikkei Surges 2%, Topix Hits Record Amid Tech Rally
SoftBank Shares Soar on Strong Earnings
Japanese stocks rallied on Friday, driven by a significant climb in the Nikkei 225, which jumped over 2%. The broader Topix index also saw substantial gains, surpassing the 3,000 threshold for the first time and reaching an all-time high. Technology, consumer cyclicals, and real estate sectors were at the forefront of this advance.
Nikkei and Topix Reach New Milestones
The benchmark Nikkei 225 index advanced by 2.22% to 41,968.68 by late morning local time. Concurrently, the Topix index climbed 1.65% to 3,037.11. Earlier in the session, the Topix had set a new all-time record, breaking the significant 3,000-point mark.
The Nikkei’s performance was bolstered by strong showings in technology firms, consumer discretionary stocks, and the real estate sector.
SoftBank Group Shares Hit Record High After Earnings Beat
Shares of SoftBank Group experienced a dramatic surge, climbing 13% to achieve a new record high on Friday. This sharp increase followed the company’s announcement of a better-than-expected profit for the fiscal first quarter. This marks the Japanese investment firm’s fourth consecutive day of gains.
SoftBank Group’s stock performance reflects positive investor reaction to its financial results. For further details on SoftBank’s earnings, one can refer to the full story [here](https://www.cnbc.com/2025/08/08/softbank-group-shares-first-quarter-earnings-beat-estimates.html).
Asian Markets Show Mixed Performance
In contrast to Japan’s positive showing, Chinese and Hong Kong stocks opened lower on Friday. The Hang Seng Index in Hong Kong fell by 0.76%, while mainland China’s CSI 300 index dropped 0.25% in early trading.
Across the Asia-Pacific region, markets presented a mixed picture. As of early Friday trading, South Korea’s Kospi index had declined by 0.13%, while the Kosdaq saw a modest increase of 0.65%. Australia’s S&P/ASX 200 benchmark was down 0.29%.
Earlier in the day, US futures showed an upward trend in early Asian trading hours.
Ahead of the market open, Japan’s Nikkei 225 futures indicated a higher start, with contracts in Chicago and Osaka trading above the previous day’s closing level. Conversely, Hong Kong’s Hang Seng index futures pointed to a weaker opening, while Australia’s S&P/ASX 200 futures suggested a lower start for the Australian market.
Investor Sentiment Turns Cautious
Investor sentiment regarding stocks has seen a notable decline, reaching its lowest point since the market peak in February. According to the latest weekly survey by the American Association of Individual Investors, bearish sentiment among individual investors has significantly increased.
This shift in sentiment is often viewed as a contrarian indicator by market strategists. Sam Stovall, chief investment strategist at CFRA Research, noted that a bearish poll can be encouraging, as it may signal that retail investors have already exited the market, potentially creating opportunities for increased buying activity.
The S&P 500 recently saw its largest one-week percentage drop in over a year, indicating a broader market sentiment shift (CNBC, 2025).