Nikkei 225 Hits Record High as Industrial Stocks Drive Post-Holiday Rally

2026-02-24 economy

Tokyo, Tuesday, 24 February 2026.
Japan’s Nikkei 225 reached a record high Tuesday, defying US tech jitters. Furukawa Electric surged over 15%, leading an industrial rally that signals renewed market confidence.

Market Resilience Amidst Global Volatility

Japanese equities demonstrated remarkable resilience on Tuesday, February 24, 2026, as the Nikkei 225 Index surged to a new record close, shrugging off negative cues from Wall Street. The benchmark index gained 571 points, or 1.00%, to finish the session at 57,396 points [1][6]. This performance marked a robust recovery as domestic markets reopened following a holiday-extended weekend, effectively decoupling from the overnight selloff in U.S. markets driven by anxieties over artificial intelligence disruptions and trade policy uncertainties [2]. While the broader Topix index had faced pressure the previous week [3], Tuesday’s rally was characterized by decisive buying in the industrial and technology sectors, signaling that investors in Tokyo are prioritizing corporate fundamentals over external macroeconomic noise.

Sector Divergence and Geopolitical Pressures

The rally was underpinned by exceptional performances in the industrial sector. Furukawa Electric Co. emerged as the session’s standout performer, surging 15.83% [1] to reach 5-year highs [4]. It was joined by Fujikura, which climbed 11.16% [1], and Murata Manufacturing, which added 9.06% [1]. The technology sector also contributed significantly to the rebound, with Kioxia Holdings rising 8.3% and Advantest advancing 4.5% [2]. However, the market was not without its weak spots. Trend Micro Inc. plummeted 13.75% to trade at 5-year lows [4], while the defense sector faced headwinds. Mitsubishi Heavy Industries lost 3.1% after China added 20 Japanese entities to an export control list, introducing a fresh layer of geopolitical risk for defense-oriented firms [2].

Policy Shadows and Currency Dynamics

Investor sentiment appears to be navigating a complex web of international policy developments. The market’s upward trajectory occurred despite lingering uncertainty surrounding President Donald Trump’s tariff agenda. The U.S. Supreme Court recently struck down the President’s emergency tariffs, a move that injected ambiguity into global trade outlooks [2][5]. In response, Tokyo has urged Washington to clarify that this judicial ruling will not negatively impact Japanese firms, reaffirming its commitment to the existing trade agreement [2]. On the currency front, the Japanese yen weakened slightly against the dollar, with USD/JPY rising 0.22% to 154.98 [4]. This currency movement often provides a tailwind for Japan’s export-heavy index. Meanwhile, crude oil prices ticked upward, with April delivery crude rising 0.69% to $66.77 per barrel [4], further influencing the industrial landscape.

Sources

Asian Markets Equity Indices