Japan's Nikkei 225: A Chip-Fueled Rally and Its Sharp Pullback

Japan's Nikkei 225 (the country's main stock index) soared 64% from August 2025's 42,718 close to June 2026's record 70,062 — then fell 8.5% to 64,141 by July 17. Semiconductor and electronics stocks drove both moves. By August 12, the index closed at 67,524, up 0.83%, again led by chips. The market's direction now hinges on that sector.