Chip Stocks Surge, Nikkei Closes Above 65,000

The Nikkei 225 index closed higher in Friday's trading (September 18, 2026), rising 882.70 points, or 1.38%, to 65,018.95. The index held above the psychological 65,000 level, despite paring some of its gains after touching an intraday high of 65,436.57. The rally occurred as investors scrutinized the Bank of Japan's interest rate decision and movements in the yen.

The semiconductor sector stood out, with the Nikkei Semiconductor Stock Index surging 5.48% to 23,966.83. However, gains were not uniform across the market. The JPX-Nikkei 400 index actually fell 0.25% to 36,690.47, highlighting a performance gap between the chip stock rally and the broader Japanese stock market.

On the policy front, the BOJ voted 7–2 to raise interest rates by 25 basis points to 1.25%, the highest level in 31 years. This anticipated hike was followed by a weakening of the yen, as the market interpreted the two dissenting votes as a signal of caution regarding future tightening. The yen's depreciation boosted sentiment for exporters, while a drop in oil prices also supported the regional market.

According to Newsmaker's analysis, strong semiconductor stocks provided a crucial boost to the Nikkei, but the weakness in the broader index suggests that the market recovery remains selective. Sustained gains will require support from other sectors and stable global sentiment. A sharp rebound in the yen or signals of more aggressive BOJ rate hikes could cap gains, whereas lower energy prices could help alleviate cost pressures for Japanese companies.