Nikkei Reaches New High as Funds Move Into Trading and Financial Shares

2026-05-13

In Tokyo stock trading on the 13th, the Nikkei Stock Average rose for a second straight day, closing at 63,272 yen, up 529 yen from the previous day, and setting a new all-time high. It opened under selling pressure after U.S. stocks fell the previous day, but buying in trading companies and financial stocks supported the market.

Funds Move to Value Stocks on Higher Rates

In the U.S. market on the 12th, declines in artificial intelligence (AI) and semiconductor stocks stood out. The Philadelphia Semiconductor Index (SOX) fell for the first time in three sessions, and the Nasdaq Composite also dropped for the first time in three sessions. In Tokyo as well, names that had led the market, such as Advantest and Tokyo Electron, were soft, and the rally in AI and semiconductor stocks cooled off.

Behind this are rising interest rates and growing inflation concerns. The U.S. Consumer Price Index (CPI) for April, released on the 12th, rose 3.8% from a year earlier, marking the strongest gain in about three years. Higher oil prices tied to tensions in the Middle East also pushed up U.S. long-term yields. Rate increases were also a focus in Japan, and money shifted toward value stocks such as trading companies, banks, and insurers.

Buying Broadens in Trading and Financial Stocks

The three trading companies Mitsubishi Corp., Sumitomo Corp., and Toyota Tsusho all hit effective all-time highs on the 13th. Each is expected to post higher profits this fiscal year and has also signaled stronger shareholder returns. Buying also spread to bank and insurance shares, and the Tokyo Stock Price Index (TOPIX) moved more strongly than the Nikkei.

Takuma Ikemoto, market analyst at Tokai Tokyo Intelligence Lab, pointed out that investors are selling semiconductor stocks that look overheated after their recent gains and rotating funds into trading companies and other firms with solid earnings. Kenichi Hirano, president of K-Asset, also sees the rise in TOPIX as a sign of improving sentiment among individual investors.

The NT ratio has eased somewhat from its high at the end of last week. Even so, while some market participants say the concentration of funds in AI-related names has become short-term overheated, there remains a strong view that supply-demand conditions are still favorable thanks to inflows from overseas investors. Hirano says he is focused on physical AI-related stocks over the medium to long term, and on trading companies and construction stocks in the short term.

After trading ended on the 13th, SoftBank Group announced its full-year earnings, and Kioxia is also set to report on the 15th. Kioxia shares rose more than 9% at one point on the 13th. The earnings reports will be watched closely to see whether the market remains led by AI stocks or whether the shift into value stocks broadens.

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