Japan's Nikkei 225 Rises 0.50% on July 27 as Middle East Tensions Ease

According to Yonhap Infomax, Japan's Nikkei 225 index rose 320.04 points (0.50%) to 64,931.19 on July 27, while the TOPIX index gained 54.76 points (1.37%) to 4,066.07. The rally was driven by easing Middle East tensions after U.S. President Donald Trump instructed against additional strikes on Iran and Iran signaled ongoing communications with the U.S., prompting rotation into economically sensitive sectors. Toyota and Japan Airlines surged over 4% each.

However, gains were capped by weakness in AI and semiconductor stocks. SoftBank dropped over 3%, while Ibiden and Advantest fell 4% and 1% respectively, with Kioxia declining nearly 5%. Analysts expect continued pressure on semiconductor stocks amid shifting investment sentiment, as capital allocation risks and rising debt concerns gain prominence over growth narratives.