Japan’s Nikkei 225 hit another record high on October 7th 2025 for the second consecutive session. Intraday trading saw the Nikkei rip through 40,500.
The rally was driven by a tech-fueled surge, especially after a landmark deal between OpenAI and AMD sent shockwaves through global markets.
AMD’s stock soared nearly 24%, challenging Nvidia’s dominance and lifting chip-related stocks in Tokyo like Advantest, Tokyo Electron, and Renesas Electronics.
The backdrop’s fascinating too: this optimism comes amid political upheaval in Japan, with Sanae Takaichi’s recent rise to LDP leadership sparking hopes of fresh fiscal stimulus.
However, on a cautionary note: Japan’s bond market is flashing warning signs—yields are spiking to levels not seen since 2008