(Updates with closing prices)
By Kevin Buckland
TOKYO, Dec 24 (Reuters) - Japanese equities slumped on Wednesday under the weight of a strengthening yen, sending the Nikkei share average to its first loss in four sessions despite robust gains for chip stocks.
The tech-heavy Nikkei (.N225) ended the day down 0.1% at 50,344.10, reversing an earlier advance.
The broader Topix (.TOPX) slid 0.5% to 3,407.37.
A stronger yen slashes the value of offshare sales for the country’s many heavyweight exporters, with automakers notable underperformers on the day.
Toyota (7203.T) sank 1.8%, and Subaru (7270.T) lost 1.2%. Electronics giants Sony (6758.T) and Nintendo (7974.T) declined 1.9% and 0.8%, respectively.
Financial firms were also standout losers, as they gave back some of the big gains that followed the Bank of Japan’s decision to raise interest rates to a three-decade high on Friday. Higher interest rates boost earnings from lending and fixed income holdings.
Insurers (.IINSU.T) lost 1.6% as a group, while banks (.IBNKS.T) dropped 1%.
The Nikkei fell despite a big boost from heavily weighted semiconductor equipment maker Advantest (6857.T) , which added 127 points to the index with a 2.5% jump.
Tokyo Electron (8035.T) rose 0.7%, while smaller rival Screen Holdings (7735.T) surged 10% to be the Nikkei’s biggest percentage gainer after Morgan Stanley MUFG Securities raised its price target on the stock.
Chip stocks were supported by gains for Wall Street peers overnight, with the Philadelphia SE semiconductor index (.SOX) climbing 0.5% to mark a fourth straight session of gains. The S&amp;P 500 (.SPX) notched a record high.
“Japanese chip-related shares are tracking U.S. peers and lifting the overall market,” and the Nikkei’s outperformance of the Topix is evidence of that, said Wataru Akiyama, a strategist at Nomura Securities.
But with trading thinned by holidays in most overseas markets to end the week, big moves in Japanese equities are unlikely, he said.
Japanese markets are open Thursday and Friday as usual.

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Japanese stocks fell as a stronger yen impacted exporters, with the Nikkei down 0.1% and Topix down 0.5%. Automakers like Toyota and Subaru, along with electronics firms Sony and Nintendo, saw declines. Financial firms also lost ground after recent gains. Despite this, chip stocks like Advantest and Screen Holdings rose, supported by gains in U.S. semiconductor stocks. Trading was thin due to holidays.

- Japanese equities declined on December 24, 2025, as a stronger yen negatively impacted exporters, with the Nikkei average falling 0.1% to 50,344.10.  
- Automakers like Toyota and Subaru underperformed, while financial firms also lost ground following recent interest rate increases by the Bank of Japan.  
- Despite gains in semiconductor stocks helping the Nikkei slightly, analysts suggest that upcoming holiday thinned trading may restrict significant market movements.

Rebounding yen sinks Japan stocks despite chip share rally