Nikkei Dips 0.43% as SoftBank Tumbles, Exporters Rally on Weak Yen
The Nikkei 225 closed down 0.43% at ¥40,081 on Friday, as a sharp decline in SoftBank Group offset gains in major exporters that benefited from the yen’s continued weakness against the dollar.
Yen Weakness Boosts Export Giants
The USD/JPY pair held near ¥158.09, maintaining pressure on the Japanese currency and providing a tailwind for export-heavy stocks. Toyota Motor led the charge among blue chips, rising 1.77% to ¥30,311.16, while Honda Motor gained 1.82% to ¥5,378.76. The weak yen environment continues to enhance the competitiveness of Japanese manufacturers in overseas markets, particularly benefiting the automotive sector as global demand remains resilient.
Sony Group also participated in the export rally, climbing 1.35% to ¥3,899.04, as investors positioned ahead of the company’s upcoming earnings amid expectations for strong gaming and entertainment segment performance. Industrial machinery maker Daikin Industries rounded out the top gainers with a 1.51% advance to ¥2,654.64.
SoftBank Drags on Tech Sentiment
The session’s biggest story was SoftBank Group’s dramatic 7.06% plunge to ¥2,534.62, erasing significant value from the technology-focused conglomerate. The decline came amid broader concerns about artificial intelligence investments following Fed official Kevin Warsh’s comments that the AI development path would be “very bumpy” despite long-term benefits for wealth creation. SoftBank’s heavy exposure to AI and technology startups through its Vision Fund made it particularly vulnerable to such sentiment shifts.
The tech selloff also weighed on other technology names, with Kyocera falling 1.25% and precision machinery maker Fanuc declining 0.42%. Financial stocks showed mixed performance, with Mizuho Financial down 0.39% while Mitsubishi UFJ Financial edged lower by just 0.09%.
Pharmaceutical Sector Shines Amid Market Uncertainty
Takeda Pharmaceutical emerged as the session’s top performer, surging 2.31% to ¥3,071.54, as investors sought defensive plays amid geopolitical tensions in the Middle East. The pharmaceutical giant’s strong pipeline and steady cash flows made it an attractive haven for risk-averse investors, particularly as oil prices headed for weekly gains due to supply disruption concerns in the region.
BOJ Policy Outlook Remains in Focus
With the next Bank of Japan meeting scheduled for April 28, 2026, market participants continue to monitor Governor Ueda’s policy stance amid ongoing US-China trade tensions and domestic economic conditions. Current market expectations favor a hold at the present rate, though investors remain sensitive to any shifts in the central bank’s tone that could impact the yen’s trajectory. A dovish hold would likely maintain pressure on the currency, while any hawkish surprise could trigger yen strength and weigh on export stocks.
The session reflected the ongoing tug-of-war between currency-driven export gains and technology sector concerns, highlighting the complex dynamics facing Japanese equities as they navigate global uncertainties while benefiting from competitive currency levels.
This article is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.