Nikkei 225 Rises 1% as Tech Stocks Linked to Japan's $550 Billion US Investment Plan Lead Gains

Deep News
02/18

The Nikkei 225 index advanced on Wednesday, poised to end a four-day losing streak, as shares of technology firms seen as participants in Japan's $550 billion investment initiative in the United States climbed. The index rose 1% to close at 57,131.89 points, while the broader Topix index gained 1.35% to finish at 3,812.39 points.

The administration of US President Donald Trump announced three investment projects on Tuesday, totaling $36 billion and funded by Japan. These include a petroleum export facility in Texas, an industrial diamond plant in Georgia, and a natural gas power plant in Ohio. These projects represent the first concrete investments under Japan's $550 billion commitment to invest in the US, which forms part of a trade agreement between the two nations that reduced US tariffs on Japanese imports to 15%.

"Investors have been buying stocks linked to this Trump investment deal over the past few days," said Takamasa Ikeda, Senior Portfolio Manager at GCI Asset Management.

Shares of electronic components manufacturer TDK (6762.T) surged 6.67%. Fiber optic cable makers Fujikura (5803.T) and Furukawa Electric (5801.T) rose 3.2% and 2.75%, respectively. Technology investment giant SoftBank Group (9984.T), which is expected to participate in the investment plan, saw its shares decline 1.89% as the artificial intelligence sector was not included in the initial project list.

Other decliners included memory chip maker Kioxia (285A.T), which fell 3.64%, dragged down by a 5.7% drop in the shares of US memory chip firm SanDisk (SNDK.O) overnight. Chip testing equipment manufacturer Advantest (6857.T) declined 0.84%.

Financial stocks broadly advanced, becoming the primary driver behind the Topix index's rise. Mitsubishi UFJ Financial Group (8306.T) and Sumitomo Mitsui Financial Group (8316.T) both gained more than 3%, while Mizuho Financial Group (8411.T) rose 1.8%.

Among the more than 1,600 stocks traded on the Tokyo Stock Exchange's main board, 76% advanced, 20% declined, and 3% ended unchanged.

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