Japan’s Nikkei 225 index surged to a record high on Tuesday, marking a second consecutive day of impressive gains. This upward trajectory was fueled by a strong rally in tech stocks following a pivotal deal between OpenAI and AMD, a move that poses a significant challenge to industry leader Nvidia. As a result, chip manufacturers saw substantial increases on the index, with Advantest climbing over 4%, Tokyo Electron increasing by 2%, Lasertec rising by 1.35%, and Renesas Electronics surging by 4.85%.
This recent rally was bolstered by political developments in Japan. On Monday, the Nikkei 225 reached a new peak after the ruling Liberal Democratic Party selected Sanae Takaichi, a staunch conservative, as its new leader on Saturday. Takaichi is poised to become Japan’s first female prime minister, a historic shift in the nation’s leadership.
The Topix index also reflected positive sentiment, gaining 0.31%. In the bond market, Japanese Government Bond yields surged to all-time highs on Tuesday. The yield on the 10-year JGB rose by 2 basis points to 1.694%, marking the highest level since July 2008. Similarly, the 20-year JGB yield increased nearly 4 basis points to 2.734%, the highest since 1999, while the 30-year JGB yield climbed over 4 basis points to an unprecedented 3.333%. It’s essential to note that one basis point is equivalent to 0.01%, with yields moving inversely to prices.
In currency trading, the Japanese yen weakened by 0.11% against the US dollar, falling to 150.49, marking its fourth consecutive session of losses. The currency had previously seen a significant drop of nearly 2% in the prior session. Meanwhile, Australia’s ASX/S&P 200 index fell by 0.27%, continuing its downturn from recent sessions. Markets in China, Hong Kong, and South Korea remained closed due to holidays.
Over in the United States, equity futures were slightly lower during early Asian trading on Tuesday, following an impressive record-breaking day for major benchmarks on Monday. The S&P 500 gained 0.36%, setting a new record for the 32nd time this year. The tech-focused Nasdaq also had a strong showing, climbing 0.71% to finish at 22,941.67, achieving its 31st all-time high in 2025. A significant boost came as AMD’s shares skyrocketed nearly 24% following its announcement of a partnership with OpenAI, where the latter could take a 10% stake in the chipmaker.
In contrast, the Dow Jones Industrial Average ended the day down by 63.31 points, or 0.14%, closing at 46,694.97. This decline was primarily driven by losses in shares of companies like Sherwin-Williams and Home Depot. The actions in both Asian and U.S. markets highlight a dynamic and interconnected global financial landscape, with technology firms at the forefront of driving substantial shifts.
This vibrant market activity, paired with significant political changes in Japan, reflects a moment of transformation that investors and analysts will be closely watching in the days to come.
Original Source: https://www.cnbc.com/2025/10/07/asia-markets-tuesday-chips-stocks-amd-openai-deal-rally.html
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Publish Date: 2025-10-07 07:20:00
