Nikkei steadies as Kioxia rises and Japan yields jump
Nikkei 225 traded sideways on July 8 as AI stocks rebounded and Kioxia rose 3.5%; Japan’s 10-year yield climbed to 2.86% while the index held its 50-day WMA.
On July 8 the Nikkei 225 traded around 39,770, moving sideways as artificial intelligence–related stocks recovered from an earlier sell-off and Kioxia shares jumped 3.5%.
SoftBank rose about 1.3% and Tokyo Electron gained roughly 1%. Advantest and Murata Manufacturing posted smaller advances. The prior decline followed a preliminary earnings update from a major memory supplier that prompted profit-taking across semiconductor and memory names. Kioxia has been highly volatile after a large rally from last year’s lows.
Morgan Stanley strategist Mike Wilson has predicted a rotation from semiconductors into hyperscalers and raised questions about the durability of current memory-industry growth. Analysts also noted uncertainty over whether U.S. policy will affect purchases of memory from Chinese suppliers by large buyers such as Apple.
Japan’s government bond yields rose sharply. The 10-year yield reached about 2.86%, the five-year near 1.98% and the 30-year around 3.98%. The dollar traded near 162.36 yen, close to the strongest levels in more than 40 years. Market participants factored in the possibility of Bank of Japan action to address the weak yen and consider several rate moves to narrow the gap with U.S. interest rates, while noting Japan’s high public debt could limit tightening.
The government is considering revisions to the wording on monetary policy in its economic blueprint, a review that has prompted debate about the central bank’s independence. Traders are watching official statements for any signs of coordination between fiscal and monetary authorities.
On technical charts, the Nikkei found support at its 50-day weighted moving average and formed a falling wedge and a bullish pennant, patterns that traders commonly view as potential reversal signals. A clear break below the 50-day line would indicate further downside and extend the recent correction.
Near-term market direction will hinge on upcoming AI and memory sector earnings, any new details on U.S.-China trade and technology policy, moves in Japanese yields, and guidance from the Bank of Japan and the government.
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