Japan’s Nikkei 225 index was on track for a weekly gain of approximately 7.3% on November 13, 2026, marking its strongest performance in five months. The rally was supported by upbeat corporate earnings, renewed optimism surrounding artificial intelligence (AI) stocks and a recovery in semiconductor shares. Japanese equities rebounded after a sharp sell-off the previous week, even as concerns surrounding NVIDIA and uncertainty in the global technology sector continued to influence investor sentiment.
The benchmark index gained 1.25% to reach 61,576.91 during Friday’s trading session, as of 0140 GMT. However, the final closing figures were more moderate: the Nikkei 225 ended Friday at 61,142.35, up 0.53% on the day and 6.46% for the week. The broader Topix index also advanced, recording its strongest weekly performance in more than two years.
Nikkei 225 Records Its Strongest Weekly Gain in Five Months
The Nikkei 225’s recovery followed a difficult previous week, when Japanese equities experienced significant selling pressure amid concerns about the global AI industry and potential regulatory changes in the United States.
By Friday morning, the index had gained approximately 7.3% for the week, putting it on course for its strongest weekly performance since the week ended June 15.
The final weekly gain stood at 6.46%, according to market data reported after the close.
The broader Topix index also participated in the recovery. It advanced 0.63% to 3,962.08 during Friday’s morning session and was heading towards a weekly gain of around 7%. It eventually closed at 3,941.57, up 0.11% for the day and 6.3% for the week.
Key Japanese Market Performance
| Indicator | Friday’s closing level | Weekly performance |
|---|---|---|
| Nikkei 225 | 61,142.35 | +6.46% |
| Topix | 3,941.57 | +6.30% |
| Nikkei 225 morning-session level | 61,576.91 | On track for +7.3% |
The figures show that Japanese equities recovered a substantial portion of their previous week’s losses, although the final gains were below the levels projected during Friday’s morning trading.
Semiconductor Stocks Lead the Japanese Market Recovery
Semiconductor companies played an important role in supporting the Nikkei’s rebound.
Shares of Advantest, Tokyo Electron and Kioxia attracted buying interest as investors returned to technology and AI-related stocks.
During Friday’s morning session:
- Advantest gained 5.9%.
- Tokyo Electron advanced 3%.
- Kioxia increased 2.9%.
By the closing session, some of these gains had moderated. Advantest finished higher by 2.08%, while Tokyo Electron gained 1.69%.
These companies are important participants in the semiconductor supply chain. Advantest supplies semiconductor testing equipment, Tokyo Electron manufactures chip production equipment, and Kioxia operates in the NAND flash memory market.
Their performance is closely watched because demand for AI computing infrastructure supports investment in advanced chips, semiconductor manufacturing equipment and high-performance memory.
The recovery in these stocks suggested that investors were again looking at the longer-term opportunities associated with AI infrastructure, despite concerns surrounding individual technology companies.
Renewed AI Optimism Supports Investor Sentiment
The Japanese market’s recovery was partly supported by renewed confidence in the broader AI industry.
The previous week’s technology sell-off had raised questions about whether massive investments in AI infrastructure would generate sufficient financial returns. Concerns about potential US regulatory changes also contributed to uncertainty across Asian technology markets.
However, gains in major US technology companies helped improve sentiment.
Broadcom and Alphabet advanced even as NVIDIA shares experienced selling pressure. Their performance indicated that investor confidence in the broader AI ecosystem remained intact.
Maki Sawada, an equities strategist at Nomura Securities, attributed part of the Nikkei and Topix recovery to a rebound in semiconductor and AI-related stocks that had remained under pressure for an extended period.
For Japanese manufacturers supplying the global semiconductor industry, continued investment in AI infrastructure remains an important source of potential demand.
NVIDIA Uncertainty Fails to Stop Japan’s Market Rally
NVIDIA remained a major focus for global investors during the week.
The US chipmaker faced heavy selling pressure following developments surrounding its leadership and concerns about the future direction of its business.
The uncertainty also raised questions about potential changes in US semiconductor export restrictions and access to the Chinese market.
These developments affected investor sentiment towards companies linked to the global AI supply chain.
However, the Japanese market demonstrated that weakness in one major technology company does not necessarily translate into selling across the entire semiconductor sector.
Gains in Broadcom and Alphabet helped support confidence in AI-related investments, while Japanese chip-equipment manufacturers benefited from renewed buying interest.
The Nikkei’s performance therefore reflected a broader recovery in technology sentiment rather than a complete absence of concerns about NVIDIA.
Positive Market Breadth Supports the Rally
The recovery was also supported by broad participation across the Japanese equity market.
During Friday’s session, 132 Nikkei 225 constituents advanced, while 91 declined and two remained unchanged.
Sapporo Holdings and Trend Micro were among the strongest performers, gaining 8.56% and 8.32%, respectively. Amada also recorded a significant increase.
On the losing side, Mercari declined 8.88%, while Japan Steel Works fell 8.46% and Kawasaki Heavy Industries dropped 8.29%.
The positive market breadth indicated that the recovery extended beyond a handful of large technology companies.
Banking stocks also attracted buying interest, gaining around 1% during the session. Their performance followed an increase in US Treasury yields amid speculation about possible US interest rate increases.
Investors were also watching earnings announcements from Japan’s three largest banking groups, which were scheduled to report their results later on Friday.
Topix Also Records a Strong Weekly Performance
The broader Topix index joined the Nikkei in recording substantial weekly gains.
Unlike the Nikkei 225, which is weighted by share prices, the Topix provides a broader representation of Japanese equities. Its performance therefore offers another indication of the strength of the market recovery.
The index’s final weekly gain of 6.3% marked its strongest performance since mid-August 2024.
The improvement suggests that buying interest extended across multiple sectors, including technology, financial services and other large Japanese companies.
However, individual stock performances remained mixed, highlighting that the rally was not uniform across the market.
The Bigger Picture
Japan’s latest stock market recovery highlights the continued influence of the global AI investment cycle on Asian equities. Japanese semiconductor equipment manufacturers and technology suppliers are closely connected to international demand for advanced computing infrastructure. When investors regain confidence in AI spending, these companies can benefit from renewed buying interest.
At the same time, the rally demonstrates that market sentiment can change quickly. Japanese equities had faced substantial pressure the previous week because of concerns about AI regulation, technology valuations and NVIDIA-related uncertainty. Strong corporate earnings and renewed confidence in semiconductor stocks helped reverse some of those losses. The final weekly gains show a meaningful recovery, but they do not eliminate the risks facing global technology markets.
Looking Ahead
Investors will continue monitoring corporate earnings, semiconductor demand and developments in the global AI industry to assess whether the Japanese market can maintain its recovery. NVIDIA-related uncertainty, US trade and technology policies, and expectations surrounding interest rates could influence market sentiment in the coming sessions. The performance of Advantest, Tokyo Electron and other semiconductor companies will remain particularly important for assessing demand across the chip manufacturing supply chain.
For Japan, the latest rally provides evidence of renewed investor interest after a difficult trading period. However, sustaining the momentum will depend on continued earnings growth and confidence in the outlook for technology investment. The Nikkei’s 6.46% weekly gain represents its strongest performance in five months, while the broader Topix recovery suggests that buying interest extended beyond the largest technology stocks.
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