Nikkei 225 Rises 1.06% to 63,027 Ahead of FOMC Results on July 29

Japanese stocks rose on the morning of July 29 ahead of the Federal Open Market Committee (FOMC) meeting results announcement. At 9:22 AM, the Nikkei 225 index traded at 63,027.04, up 662.12 points (1.06%) from the previous session, recovering the 63,000 level after falling nearly 4% the prior day. The Topix index rose 11.68 points (0.29%) to 3,975.27. Market participants showed a cautious stance ahead of the FOMC results scheduled for release early July 30 Japan time, with expectations leaning toward a hawkish hold restraining aggressive trading.

Semiconductor Stocks Attract Buying After US Selloff

Japanese semiconductor-related stocks drew buying interest in early trading despite overnight losses in US chip stocks. Kioxia's share price rose over 2% and Advantest climbed nearly 5% in the opening session. Ibiden's stock also gained more than 1%. The Philadelphia Semiconductor Index fell over 4% overnight, with AMD, Applied Materials, ASML, and Intel all declining. The Nasdaq Composite Index, which has a high weighting of technology stocks, also fell.

SK Hynix Earnings and Kumamoto Earthquake Draw Market Attention

Market participants closely monitored the movement of South Korea's KOSPI index after SK Hynix announced second-quarter earnings below expectations before the opening. Attention also focused on the impact of an earthquake that occurred in Kumamoto Prefecture the previous day. TSMC's Japanese subsidiary JASM operates semiconductor-related facilities concentrated in Kumamoto Prefecture, raising concerns about potential effects on corporate activities.

The dollar-yen exchange rate traded at 163.797 yen at the same time, up 0.01% from the previous session.

FAQ

What did the Nikkei 225 index do on the morning of July 29?

The Nikkei 225 index rose 662.12 points (1.06%) to 63,027.04 at 9:22 AM on July 29, recovering the 63,000 level after falling nearly 4% the previous day.

Why did Japanese semiconductor stocks rise despite US chip stock declines?

Japanese semiconductor stocks including Kioxia (up over 2%) and Advantest (up nearly 5%) attracted buying in early trading on July 29, even as the Philadelphia Semiconductor Index fell over 4% overnight and US chip stocks including AMD, Applied Materials, ASML, and Intel declined.

What external factors drew market attention on July 29?

Market participants focused on SK Hynix's announcement of second-quarter earnings below expectations before the opening and the impact of an earthquake in Kumamoto Prefecture, where TSMC's Japanese subsidiary JASM operates concentrated semiconductor facilities.