Japan’s Nikkei rises as US government set to reopen; Topix hits new high
- The Topix was up 0.63% at 3,380.53 after rising to a record high of 3,389.12 earlier in the day
TOKYO: Japan’s Nikkei share average inched higher on Thursday, as the US Congress voted to end the historic federal shutdown, while the broader Topix index rose to a fresh peak on value-buying.
The Nikkei rose 0.3% to 51,189.21 by 0154 GMT.
The Topix was up 0.63% at 3,380.53 after rising to a record high of 3,389.12 earlier in the day, extending gains to a fourth session.
A deal to end the longest government shutdown in US history cleared Congress on Wednesday, after the House of Representatives voted to restart disrupted food assistance, pay hundreds of thousands of federal workers and revive a hobbled air-traffic control system.
In Japan, chip-related Advantest rose 2.95% to become the biggest source for the Nikkei’s gain. Fibre optic maker Fujikura advanced 4.36%, while peers Furukawa Electric and Sumitomo Electric jumped 13% and 7%, respectively.
SoftBank Group fell 4.54% to weigh the most on the Nikkei. Bank shares rose, with Mitsubishi UFJ Financial Group climbing 1.83%.
Sumitomo Mitsui Financial Group and Mizuho Financial Group gained 1.19% and 2%, respectively.
“Investors started buying value stocks. This move is similar to what is going on in the US,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
Wall Street’s main indexes closed mixed on Wednesday, with the Dow Jones Industrial Average notching a record-high close and the Nasdaq losing ground as investors rotated out of pricey technology stocks.
“Money has started flowing to broader stocks and sectors in Japan,” Shimada said.
The utility sector jumped 2.33% and the brokerage sector rose 2.15%.
Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 64% rose, 30% fell and 4% traded flat.
Comments
Comments are closed for this article.