Asian tech stocks drive Nikkei up 2.2% following US chip rally and jobs data

Technology shares lead regional rally

Asian stock markets opened the trading week with gains across regional trading hubs on Monday, 7 September 2026, driven by momentum in the semiconductor sector and strong lead-ins from Wall Street. In Tokyo, the benchmark Nikkei 225 index advanced 2.2% to close at 66,460 points, expanding on an initial 1.8% gain recorded in early morning trading. The broader Topix index also moved upward, adding 0.6% to finish at 4,128 points. Investor interest centered heavily on semiconductor equipment manufacturers and artificial intelligence suppliers following a rally in US technology equities on Friday. Japanese memory manufacturer Kioxia led the domestic tech pack with a 6.8% gain, while investment giant SoftBank Group rose 6.2%. Semiconductor production equipment manufacturers Advantest and Tokyo Electron both posted gains of more than 4% during the Tokyo session.

Macroeconomic data and strategist perspective

The regional advance followed the publication of the latest US employment report, which showed resilient labor market conditions and alleviated concerns over a global economic recession. Market sentiment was further influenced by fiscal stability in the United States, where bond yields moderated and eased pressure on Asian currencies. Mamoru Shimode, chief strategist at Resona Asset Management, noted that reduced market volatility created a favorable environment for equity investors seeking growth assets.

As US Treasury Secretary Scott Bessent appears to be curbing bond yields and stopping the fall of the yen, market volatility has decreased. That has made it easier for equity investors to switch to risk-on mode.

However, performance across the Tokyo exchange was not uniformly positive, as non-technology sectors faced selective selling. Banking groups experienced losses during the session, with Mitsubishi UFJ Financial Group falling by more than 1%. Consumer electronics and entertainment firm Sony also declined, dropping 2% by the close of trading.

South Korean and Chinese market performance

Semiconductor demand supported other Asian exchanges, with South Korean equities reflecting the appetite for artificial intelligence infrastructure. In Seoul, hardware manufacturers Samsung Electronics and SK Hynix attracted sustained buying interest from institutional and retail investors. Samsung Electronics finished the trading day up 3.7%, while memory chip supplier SK Hynix gained 6.0%. In mainland China, equity benchmarks registered more subdued movements across the Shanghai and Shenzhen exchanges. The Shanghai Composite index remained largely unchanged, closing at 3,928 points. Meanwhile, the CSI 300 index, which tracks the largest listed companies across Shanghai and Shenzhen, gained 0.3% to end the day at 4,562 points.

Currency interventions and foreign reserves

The equity market advance took place alongside the release of official Japanese macroeconomic figures detailing foreign exchange operations. Official data revealed that Japan's foreign exchange reserves suffered their largest monthly decrease in August following government action to support the yen. Tokyo authorities expended nearly $100 billion in direct market interventions designed to lift the yen from its 40-year low. The currency stabilization measures succeeded in halting the sharp depreciation of the yen against the US dollar. The resulting exchange rate stability provided export-oriented Japanese manufacturers and multinational corporations with greater planning security in their forward forecasts.