Key takeaways

• JP225 rallied from around 67,700 to 69,700 points between 2 PM GMT and 8:45 AM GMT, extending its strong rebound.
• A recovery in South Korean equities helped lift broader Asian markets and provided additional support for Japan’s technology sector.
• Despite the rebound in Japanese equities, SoftBank ADRs (SFT.DE) are trading lower today and have now fallen nearly 30% from their recent highs.

📈 Japanese stocks rebound amid renewed investors optimism in Asia The Japan 225 futures contract gained more than 2% today, with the continued weakness of the Japanese yen providing an additional tailwind for the country’s leading exporters by improving the earnings outlook for overseas sales. Japan’s Nikkei 225 rose 1.5% , recovering part of its recent losses, with real estate, banking, and semiconductor materials companies leading the advance.

• Rohm (+14%), SUMCO (+11%), and Kioxia (+9%) were among the strongest performers, suggesting investors are returning to selected semiconductor supply chain stocks after the recent sharp correction.
• Market breadth remained exceptionally strong , with advancing stocks outnumbering decliners by more than three to one on the Tokyo Stock Exchange, indicating broad-based buying rather than gains driven by only a handful of large-cap names.
• The recent 27% decline in the Nikkei Volatility Index to its lowest level in three months points to improving risk appetite and easing concerns about near-term market volatility.
• The broader macro backdrop remains moderately supportive for Japanese equities. Brent crude has recovered above $72 per barrel , the Japanese yen remains weak , and gold has gained 1.5% , reflecting a market environment where demand for defensive assets persists despite improving equity sentiment.

JP225 (H1) The JP225 futures contract continues to trade below both the 50-period and 200-period Exponential Moving Averages (EMAs) , indicating that bulls still need to prove they can regain control of the trend. The key resistance is currently located around 7,000 points , and a sustained breakout above this level could open the door to a move toward 7,200 points , where previous price reactions have formed an important resistance zone.

Source: xStation 5 SoftBank (D1)

Japanese technology giant SoftBank (SFT.DE) has declined by more than 30% from its early June record highs. If the current decline stabilizes around these levels, it could resemble the 1:1 corrective pattern seen in the autumn of 2025. Key support is located near 28 , where the 200-day EMA is positioned, while the main resistance lies around 35 , where the 50-day EMA coincides with a significant price gap.

Source: xStation 5

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