Editor’s Note
This article discusses the Nikkei 225’s decline this week, driven by a stronger yen and subsequent selling of export-related stocks.
This week (January 26-30), the Nikkei 225 fell, closing at 53,322.85 yen, down 524.02 yen (0.97%) from last weekend.
On January 23, the foreign exchange market saw a stronger yen trend due to speculation of “rate checks by Japanese and US financial authorities.” This led to selling of export-related and financial stocks at the start of the week on the 26th, with the Nikkei 225 temporarily falling over 1,000 yen. Domestic media reports suggesting “declining approval ratings for the Takaichi 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 225. Furthermore, on the 28th, the Nikkei rose influenced by the earnings report from Dutch semiconductor equipment giant ASML Holding (ASML), and on the 29th, by the evaluation of Advantest’s earnings.
On the weekend of January 30, Advantest, which had surged the previous day, fell under profit-taking selling pressure. Additionally, influenced by Microsoft’s (MSFT) decline in the US market on the 29th following its earnings report, the Nikkei 225 retreated slightly.
52,500 – 54,500 Yen
Next week (February 2-6), the Nikkei 225 is likely 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 rotational buying based on these earnings is expected to be the main theme.
Furthermore, the Lower House election voting and counting are 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 “Takaichi stocks,” the market is expected to show resilience.
Unitika tops the gainers list at +61.28%!
Let’s look at individual stocks that showed notable price movements this week.
The top of this week’s gainers ranking was Unitika (3103). Buying intensified for this rare earth-related stock due to its technology for recovering rare earths using fibrous adsorbent materials, leading to a rise including limit-up moves.
Redux (7602), ranked 2nd in gainers, and Kubota Pharmaceutical Holdings (4596), ranked 3rd, announced on January 29 that they met the listing maintenance criteria for the TSE Growth Market in a review with a base date of December 31, 2025. This was apparently well-received.
Meanwhile, the top of this week’s losers ranking was Taoka Chemical (4113). It was sold off 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 viewed negatively.
Focus on US employment statistics, ISM manufacturing/non-manufacturing, earnings from Alphabet, etc., and domestic earnings from Nintendo, Mitsubishi Heavy Industries, major trading houses, and real estate companies!
Events scheduled for next week include:
February 2 (Mon): Earnings: Kotobuki Spirits (2222), Murata Manufacturing (6981), East Japan Railway (9020). China Jan RatingDog Manufacturing PMI. Germany Dec Retail Sales. Germany Jan Manufacturing PMI Final. Eurozone Jan Manufacturing PMI Final. US Jan Manufacturing PMI Final. US Jan ISM Manufacturing Index. Earnings: Walt Disney (DIS), Teradyne (TER).
February 3 (Tue): Earnings: Nintendo (7974), Mitsui & Co. (8031), Kawasaki Kisen Kaisha (9107). US Dec JOLTS Job Openings. Earnings: Advanced Micro Devices (AMD).
February 4 (Wed): Earnings: Mitsubishi Heavy Industries (7011), Mitsubishi UFJ Financial Group (8306). China Jan RatingDog Services PMI. Germany Jan Services PMI Final. Eurozone Jan Services PMI Final. Eurozone Jan CPI (HICP) Flash. Eurozone Dec PPI. US Jan ADP Employment. US Jan Services PMI Final. US Jan Composite PMI Final. US Jan ISM Non-Manufacturing Index. Earnings: Alphabet (GOOG), Qualcomm (QCOM).
February 5 (Thu): Earnings: Mitsubishi Corp. (8058). Germany Dec Manufacturing New Orders. Eurozone Dec Retail Sales. Bank of England (BOE) Interest Rate Announcement. European Central Bank (ECB) Policy Rate. Earnings: Amazon.com (AMZN).
February 6 (Fri): Earnings: Taisei Corp. (1801), Tokyo Electron (8035), Mitsui Fudosan (8801). Japan Dec Household Spending Survey. Japan Dec Leading/Coincident Index. Germany Dec Industrial Production. Germany Dec Trade Balance. US Jan Employment Report. US Feb University of Michigan Consumer Sentiment.