Stock Markets January 27, 2026

Tokyo stocks close higher as Nikkei rises 0.77% on sector gains

Advantest and Nissui reach record highs while market volatility jumps to a one-month peak

By Avery Klein
Tokyo stocks close higher as Nikkei rises 0.77% on sector gains

Tokyo markets finished higher on Tuesday, with the Nikkei 225 up 0.77% as gains in Real Estate, Banking and Textile sectors supported the advance. Several individual names posted notable moves, including Resonac, Advantest and Nissui on the upside, while Tokyo Electric Power and other industrials lagged. Market breadth showed more decliners than advancers and implied volatility rose to a one-month high. Oil and FX markets moved modestly.

Key Points

  • Nikkei 225 closed up 0.77%, led by gains in Real Estate, Banking and Textile sectors.
  • Individual winners included Resonac (TYO:4004) to a five-year high and Advantest (TYO:6857) and Nissui (TYO:1332) to all-time highs.
  • Market breadth was negative with 1,934 decliners versus 1,617 advancers, and Nikkei implied volatility rose to a one-month peak, impacting equity derivatives activity.

Tokyo equities ended the trading day in positive territory on Tuesday, anchored by strength in the Real Estate, Banking and Textile sectors. The Nikkei 225 closed up 0.77%.


Top movers at the close

The leading performers on the Nikkei 225 included Resonac Holdings Corp (TYO:4004), which climbed 6.95% - up 557.00 points to finish at 8,576.00. Advantest Corp. (TYO:6857) advanced 5.85%, adding 1,380.00 points to settle at 24,955.00. Nissui Corp (TYO:1332) rose 4.45%, or 55.50 points, to close at 1,303.50.

On the downside, Tokyo Electric Power Co., Inc. (TYO:9501) fell 7.92%, a decline of 52.40 points to 609.60 at the close. Japan Steel Works Ltd (TYO:5631) dropped 3.49%, down 311.00 points to end at 8,601.00, and Suzuki Motor Corp. (TYO:7269) gave up 3.48%, or 76.00 points, finishing at 2,106.50.


Market breadth and record levels

Decliners outnumbered advancers on the Tokyo Stock Exchange, with 1,934 stocks falling versus 1,617 rising; 263 issues finished unchanged. Resonac's share price moved to a five-year high with its 6.95% gain. Both Advantest and Nissui reached all-time highs during the session, as reflected by their respective closing levels.

Volatility and derivatives

The Nikkei Volatility index, which tracks implied volatility on Nikkei 225 options, increased 9.19% to 34.57, registering a new one-month high in the process.


Commodities and FX

In commodities, crude oil for March delivery declined 0.16% - down $0.10 - to trade at $60.53 a barrel. Brent oil for April delivery fell 0.28%, or $0.18, to $64.59 a barrel. April Gold Futures ticked up marginally by 0.00% - an increase of $0.14 - to trade at $5,122.44 a troy ounce.

On the currency front, USD/JPY rose 0.21% to 154.48 and EUR/JPY increased 0.16% to 183.42. The US Dollar Index Futures was higher by 0.09% at 96.94.


Market participants noted a mix of concentrated stock-level strength and broader market caution, reflected in the divergence between standout performers and the overall breadth of decliners, while implied volatility moved higher into the close.

Risks

  • Rising implied volatility - The Nikkei Volatility index increased 9.19% to 34.57, which may signal greater uncertainty for options and hedging costs - this primarily affects equity derivatives and market participants using options.
  • Uneven market breadth - Decliners outnumbered advancers 1,934 to 1,617, indicating concentrated gains among a subset of names while broader market participation lagged - this can impact sectors beyond the leading Real Estate, Banking and Textile groups.
  • Commodity and FX moves - Modest declines in oil prices and shifts in USD/JPY and EUR/JPY could influence energy, materials, and export-oriented sectors.

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