Japan's Nikkei ends at over 2-month high

[TOKYO] Japan’s Nikkei closed at a more than two-month high on the first trading day of 2026, led by chip-related stocks, as investors brushed off the potential impact of US military action in Venezuela.

The Nikkei jumped nearly 3 per cent to 51,832.8 on Monday (Jan 5), its highest close since October 31. The benchmark also marked its highest daily rise since October 20.

The broader Topix rose 2.01 per cent to a record close of 3,477.52.

Shares of chip-testing equipment maker Advantest jumped 7.84 per cent, while the chip-making equipment maker Tokyo Electron climbed 7.6 per cent. Chip-related shares tracked a 4 per cent gain in the US semiconductor index on Wall Street’s opening session of the year on Friday.

“The market turned risk-on as if uncertainties over the impact of the US action on Venezuela had been removed,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

The surge in Japanese equities followed a dramatic weekend of events, which saw the US capture Venezuelan President Nicolas Maduro. US President Donald Trump said on Saturday he was putting Venezuela under temporary American control.

“Monday’s session mirrored what happened to the Nikkei last year, where chip-related shares led the market. This may become the trend of this year as well,” Shimada said.

Technology investor SoftBank Group rose 4.89 per cent and fibre optic cable maker Fujikura climbed 5.76 per cent.

Defence-related shares surged, with IHI and Mitsubishi Heavy Industries climbed 8.99 per cent and 8.39 per cent, respectively.

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Japan’s Nikkei jumps nearly 3% as markets shrug off Venezuela tension

“The US capture of the Venezuelan president raised fears for geopolitical risks, but that became a tailwind for defence stocks,” Shimada said.

All but two of the Tokyo Stock Exchange’s 33 industry sub-indexes rose, with the nonferrous metals sector jumping nearly 5 per cent to become the top performer.

Software testing services firm Shift and furniture and kitchen goods retailer Nitori Holdings dropped more than 2 per cent each, ranking as the index’s biggest percentage losers. REUTERS