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Nikkei rises as bargain hunting offsets chip weakness and Middle East caution

Nikkei rises as bargain hunting offsets chip weakness and Middle East caution

Tokyo stocks rebounded after a sharp selloff, supported by dip-buying and easing geopolitical fears, while mixed semiconductor moves, higher oil risk and the Federal Reserve outlook kept sentiment cautious.

Fact Check
The BigGo Finance report 'Nikkei 225 Rebounds 320 Points as Middle East Risk Recedes' explicitly states the Nikkei rose 320.04 points (+0.50%) to 64,931.19 on July 27, driven by easing Middle East tensions offsetting US semiconductor weakness — matching the claim's headline figure exactly. The companion sources confirm the chip weakness (Kioxia fell over 5%, plus Advantest, Tokyo Electron, SoftBank) and that TOPIX gained more strongly (+1.37% / +0.97% intraday), consistent with 'the Nikkei lagging the stronger TOPIX.' The morning-session source showing +0.24% reflects an intraday snapshot before the afternoon rally, not a contradiction of the full-day close.
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Summary

Japan's Nikkei 225 rebounded on July 29 after a steep prior-session drop, helped by bargain hunting in blue-chip and value shares and some relief over Middle East tensions, though gains were capped by mixed semiconductor performance, selective bank weakness and caution ahead of the Federal Reserve decision. The Nikkei closed up 320.04 points, or 0.50%, at 64,931.19 after rising as much as roughly 560 to 610 points early in the session, while TOPIX outperformed with a 1.37% gain to 4,066.07. Toyota Motor rose more than 2% and Fast Retailing edged higher, while chip- and AI-linked shares were mixed, with Advantest and Kioxia Holdings firm but Tokyo Electron down more than 1% and SoftBank Group slightly lower. Broader regional sentiment was also shaped by SK Hynix earnings, which steadied some AI-trade nerves in Asia, even as renewed Middle East attacks pushed oil prices higher and investors watched upcoming Microsoft and Meta earnings and the Fed for direction.

Terms & Concepts
  • TOPIX: Tokyo Stock Price Index, a broad benchmark covering companies listed on the Tokyo Stock Exchange's Prime market.
  • AI trade: Market positioning focused on companies seen as beneficiaries of artificial intelligence demand and investment.
  • NT Ratio: A measure comparing the Nikkei 225 with TOPIX, used to gauge whether narrower large-cap index moves are lagging or outperforming the broader market.