Japan's stock market reached a significant milestone on August 8, 2025, as the Topix index closed at a record high of 3,028.44, breaking the 3,000-point barrier for the first time. This surge was accompanied by the Nikkei share average, which climbed to 41,739.23. The robust performance was largely driven by SoftBank Group's strong first-quarter earnings, which reported a net profit of 421.8 billion yen ($2.87 billion), marking a substantial turnaround from a net loss in the previous year. SoftBank's success is attributed to its significant investments in artificial intelligence, including its commitment to OpenAI and its pivotal role in the ambitious $500 billion Stargate data center project. SoftBank's own shares reflected this positive momentum, soaring over 13% to a record high of 14,205 yen.
The broader market sentiment was buoyed by optimism surrounding potential adjustments to U.S. tariffs on Japanese goods. On August 7, 2025, the U.S. government promised to amend a presidential executive order to remove overlapping tariffs, with auto tariffs set to be lowered to 15% from 27.5%. This clarity provided relief to exporters and contributed to the positive market environment. In parallel, major Japanese firms have agreed to wage hikes averaging over 5% this year, with the average increase reaching 5.39%, the second consecutive year of such substantial raises. Analysts at Macquarie highlighted SoftBank's performance as a testament to its diversified portfolio and strong fundamentals, particularly within the AI sector. While other Asian markets experienced declines, Japan's indices demonstrated resilience and growth, with companies like Sony Group and major automakers also reporting significant gains.
The Stargate project, a collaboration between SoftBank and OpenAI, is progressing, although facing some delays in site selection and partner consensus. The project aims to invest $500 billion over four years to build AI infrastructure in the United States, with key partners including Oracle and NVIDIA. Despite these challenges, SoftBank's CFO, Yoshimitsu Goto, expressed confidence that the project would eventually meet its ambitious targets.