Editor’s Note
This week’s decline in Japan’s Nikkei 225 highlights the market’s sensitivity to currency fluctuations and corporate earnings. As the yen strengthened on intervention speculation, export-oriented stocks faced pressure, underscoring the ongoing challenge for Japanese equities in navigating global monetary policy shifts.
This week (January 26-30), the Nikkei 225 average fell, closing at 53,322.85 yen, down 524.02 yen (0.97%) from the previous weekend.
On January 23, speculation of “rate checks by Japanese and US monetary authorities” in the forex market strengthened the yen’s appreciation trend. This led to selling of export-related and financial stocks at the start of the week on the 26th, with the Nikkei 225 briefly falling over 1,000 yen. Domestic media reports suggesting “declining approval ratings for the Takachi cabinet” also seemed to prompt position adjustments.
However, on January 27, semiconductor stocks such as Advantest (6857), Tokyo Electron (8035), Disco (6146), and Lasertec (6920) were bought, leading to a rebound in the Nikkei. Further gains followed on the 28th, influenced by positive assessments of earnings from Dutch semiconductor equipment giant ASML Holding (ASML) and Advantest’s results on the 29th.
On the weekend of January 30, Advantest, which had surged the previous day, fell due to profit-taking selling. Additionally, influenced by Microsoft’s (MSFT) decline in the US market on the 29th following its earnings report, the Nikkei 225 experienced a slight pullback.
【Next Week’s Nikkei 225 Assumed Range】
52,500 ~ 54,500 Yen
Next week (February 2-6), the Nikkei 225 is expected to continue trading based on cues from major companies’ earnings announcements.
In the US, earnings are scheduled for Walt Disney (DIS) and Teradyne (TER) on February 2, Advanced Micro Devices (AMD) on the 3rd, Alphabet (GOOG) and Qualcomm (QCOM) on the 4th, and Amazon.com (AMZN) on the 5th.
Domestically, earnings are scheduled for Murata Manufacturing (6981) on February 2, Nintendo (7974), Mitsui & Co. (8031), and Kawasaki Kisen Kaisha (9107) on the 3rd, Mitsubishi Heavy Industries (7011) and Mitsubishi UFJ Financial Group (8306) on the 4th, and Tokyo Electron (8035) on the 6th. Therefore, daily stock picking centered around these results is likely.
Furthermore, the Lower House election voting and counting is scheduled for the weekend of February 8. Looking at the election situation, the ruling party is expected to secure a majority.
Given the potential for renewed focus on “Takachi stocks,” the market’s underlying firmness is expected to be recognized.
Unitika Tops Gainers List with +61.28%
Unitika (3103) topped this week’s gainers ranking. Buying intensified for it as a rare earth-related stock due to its technology for recovering rare earths using fibrous adsorbent materials, leading to rises including limit-up gains.
Redux (7602), ranked 2nd in gainers, and Kubota Pharmaceutical Holdings (4596), ranked 3rd, announced on January 29 that they met the listing maintenance standards for the Tokyo Stock Exchange Growth market in a review with a base date of December 31, 2025. This was apparently viewed favorably.
Meanwhile, Taoka Chemical (4113) ranked first in this week’s losers ranking. It was sold after announcing a downward revision of its earnings forecast for the fiscal year ending March 2026 on January 28.
BBD Initiative (5259), ranked 2nd in losers, announced a business integration with Headwaters (4011) on January 26. The abolition of the shareholder benefit program due to the merger was disliked.
■This Week’s Top 5 Gainers
1. Unitika (TSE P, 3103): +61.28%
2. Redux (TSE S, 7602): +51.80%
3. Kubota Pharmaceutical Holdings (TSE G, 4596): +46.97%
4. Matsumoto (TSE S, 7901): +44.49%
5. Chiyoda Corporation (TSE S, 6366): +43.40%
■This Week’s Worst 5 Losers
1. Taoka Chemical (TSE S, 4113): -25.13%
2. BBD Initiative (TSE G, 5259): -24.26%
3. Quantum Solutions (TSE S, 2338): -24.10%
4. Karnaphuli Bio Science (TSE G, 4572): -23.39%
5. Enigmo (TSE P, 3665): -22.50%
■This Week’s Top 5 by Trading Volume
1. NTT (TSE P, 9432): 1,096,349,100 shares
2. Land (TSE S, 8918): 884,286,600 shares
3. Japan Display (TSE P, 6740): 703,413,000 shares
4. Tokyo Electric Power Company Holdings (TSE P, 9501): 521,988,300 shares
5. SoftBank Group (TSE P, 9434): 447,701,600 shares
Focus on US Employment Data, ISM Indices, Earnings from Alphabet, Nintendo, Mitsubishi Heavy Industries, Major Trading Houses, and Real Estate Companies!
Key events scheduled for next week include:
February 2 (Mon): Earnings: Kotobuki Spirits (2222), Murata Mfg. (6981), East Japan Railway (9020). Japan Jan RatingDog Manufacturing PMI. Germany Dec Retail Sales, Jan Manufacturing PMI Final. Eurozone Jan Manufacturing PMI Final. US Jan Manufacturing PMI Final, ISM Manufacturing Index. Earnings: Walt Disney (DIS), Teradyne (TER).
February 3 (Tue): Earnings: Nintendo (7974), Mitsui & Co. (8031), Kawasaki Kisen (9107). US Dec JOLTS Job Openings. Earnings: Advanced Micro Devices (AMD).
February 4 (Wed): Earnings: Mitsubishi Heavy Industries (7011), MUFG (8306). Japan Jan RatingDog Services PMI. Germany Jan Services PMI Final. Eurozone Jan Services PMI Final, Jan HICP Flash, Dec PPI. US Jan ADP Employment, Services PMI Final, Composite PMI Final, ISM Non-Manufacturing Index. Earnings: Alphabet (GOOG), Qualcomm (QCOM).
February 5 (Thu): Earnings: Mitsubishi Corp. (8058). Germany Dec Manufacturing Orders. Eurozone Dec Retail Sales. Bank of England Rate Decision. ECB Policy Rate. Earnings: Amazon.com (AMZN).
February 6 (Fri): Earnings: Taisei Corp. (1801), Tokyo Electron (8035), Mitsui Fudosan (8801). Japan Dec Household Spending, Leading/Coincident Indices. Germany Dec Industrial Production, Trade Balance. US Jan Employment Report. US Feb Univ. of Michigan Consumer Sentiment.