Japan’s Nikkei 225 closed Wednesday, October 21, 2026, up 0.85% at 64,621.24, a gain of 545.82 points. Technology and semiconductor shares supported the recovery, although the benchmark finished below its morning peak.
Semiconductors outperform as the Nikkei trims gains
The index opened at 64,885.95 and reached an intraday high of 65,404.63 before retreating from that level. The Nikkei Semiconductor Stock Index finished 1.70% higher, outperforming the broader benchmark.
The recovery came alongside firmer sentiment following U.S. corporate earnings and renewed interest in AI-linked shares after recent pressure. That describes the wider market backdrop; it does not establish a separate company announcement as the reason for every rising stock.
Exports grow while imports weigh on the trade balance
September trade data showed Japanese exports rising 16.7% from a year earlier and imports increasing 18.9%. The trade deficit was JPY 536.6 billion. The figures indicate continued trade growth alongside a significant import bill.
What investors should monitor
Demand for technology components may support Japanese businesses exposed to semiconductor supply chains. The benefit will differ by product, customer base and profit margins. The yen, energy prices, bond yields and corporate earnings guidance remain relevant to judging the durability of the recovery.
The retreat from the session high makes market breadth and turnover worth monitoring in coming sessions. A single positive day is insufficient to establish a sustained change in trend.
Read our analysis of the yen and Japan’s market risks
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