Investors pick Japan: Nintendo, Sony and SoftBank shares break records amid tariff wars
In a world where Donald Trump's tariff wars are wreaking havoc, Japan has suddenly become a safe haven. Not at the expense of the yen, which is still at a 30-year low, but thanks to companies immune to duties. In the last week, Nintendo shares are up 14%, Sony is up 8.6%, SoftBank is up 20%, and all three have broken their records.
What are the reasons for the rise
The explanation for the surge in stocks is simple. Japan managed to wrangle a soft tariff agreement from the U.S. and remained almost out of whack. SoftBank has become a "local bet on artificial intelligence" - through it, investors are actually getting into OpenAI and Nvidia. And Nintendo and Sony aren't getting in each other's way at all: they have different armies of fans. True Switch fans are so loyal to the brand that they'll buy the game a second time just to play it on their favourite console.
The launch of Switch 2 in June proved it: the console became the fastest-selling console in history, with hardware sales soaring in the US and loyal players queuing up on day one. Meanwhile, the PlayStation 5 only strengthened its position, with the number of active users up 6% and total playtime in the plus side.
Japan's largest tech companies hit new highs in August 2025. Illustration: Bloomberg
The market appreciates that brands co-exist without "cannibalising" audiences. With automakers and other exporters suffering from retaliatory duties, investors are switching to companies with steady demand and "content armour" - you can't hang a tariff on intellectual property.
It's a similar story in China, with Tencent also barely affected by the tariff storm, unlike JD.com and Alibaba. Yes, Sony and Nintendo's hardcore businesses are still vulnerable to the new White House fads, but their strategic focus on content makes their stocks a sweet pick.
There's optimism in Tokyo's stock market, with the Nikkei 225 hitting an all-time high and global investors actively shifting technology investments to Asia, according to Saxo strategists.
Source: Bloomberg