Nikkei Falls 0.5% as SoftBank Plunges, Exporters Rally on Weak Yen
The Nikkei 225 declined 0.53% to close at ¥37,527 on Thursday as SoftBank Group’s dramatic 8.87% plunge weighed on the index, though major exporters rallied on the persistently weak yen amid escalating Middle East tensions.
Yen Weakness Boosts Export Giants Despite Market Decline
The USD/JPY pair held near multi-decade highs at ¥163.53, providing a tailwind for Japan’s export-heavy manufacturers. Toyota Motor surged 3.51% to ¥30,468.72, leading the Nikkei’s gainers as investors bet the weak yen will boost overseas earnings. Nintendo jumped 3.50% to ¥1,913.38, while Sony Group advanced 2.47% to ¥3,676.66. Honda Motor also participated in the export rally, gaining 1.32% to ¥4,847.44.
The yen’s weakness comes as geopolitical tensions escalate in the Middle East, with US military strikes on Iran lasting two hours and hitting dozens of targets according to Reuters reports. Oil markets remained volatile as traders assessed potential supply disruptions, with QatarEnergy reportedly purchasing 33 US LNG cargoes to offset potential Strait of Hormuz disruptions.
SoftBank Collapse Drags Down Tech Sector
SoftBank Group’s massive 8.87% decline to ¥2,240.44 emerged as the session’s biggest story, erasing gains across the broader technology sector. The sell-off came despite positive earnings from Samsung Electronics, which beat second-quarter operating profit estimates on soaring AI chip demand. The contrast highlighted ongoing concerns about SoftBank’s investment portfolio and exposure to volatile tech valuations.
Financial stocks also struggled, with all three megabanks posting losses. Mizuho Financial dropped 2.77% to ¥1,549.98, Sumitomo Mitsui Financial fell 2.46% to ¥3,943.68, and Mitsubishi UFJ Financial declined 2.18% to ¥3,466.52. The banking sector’s weakness reflected concerns about potential Federal Reserve policy shifts following overnight US developments.
BOJ Policy Outlook Remains in Focus
With the next Bank of Japan meeting scheduled for April 28, 2026, market participants continue monitoring Governor Ueda’s policy stance amid ongoing US-China trade tensions. Current market expectations favor a hold at the current rate, though investors remain sensitive to any hawkish surprises that could strengthen the yen and pressure export stocks. A dovish hold would likely maintain the current yen-negative environment benefiting exporters.
Thursday’s mixed session underscored the complex dynamics facing Japanese equities, where currency weakness provides export support even as domestic concerns and global uncertainties weigh on sentiment. The divergence between export giants and domestic-focused sectors reflects investors’ ongoing focus on yen movements and their differential impact across Japanese industries.
This article is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.