Japan’s Nikkei rises as tech gains on Middle East deal optimism
- The Nikkei was up 1.07% at 59,453.44
TOKYO: Japan’s Nikkei share average rose on Tuesday as optimism grew from reports that Tehran is considering attending peace talks with Washington in Pakistan, lifting risk appetite and prompting investors to buy domestic heavyweight technology stocks.
The Nikkei was up 1.07% at 59,453.44, as of 0147 GMT, while the broader Topix inched 0.14% higher to 3,782,43.
An uneasy ceasefire between the United States and Iran frayed after the US announced the seizure of an Iranian cargo ship, drawing vows of retaliation from Tehran.
Iran said over the weekend it would skip a second round of negotiations, though a senior official later told Reuters the country may yet send delegates to talks expected in Islamabad.
In Japan, chip-related shares climbed, with Tokyo Electron and Advantest up 4.3% and 1.79%, respectively.
Kioxia Holdings jumped 5.3% and technology investor SoftBank Group gained 4.23%.
“The market might be too optimistic about the aftermath of the war. There is a concern about the impact of the disruption of the supply chain,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
“There may be a big correction of the stock market in the summer if the impact of the supply shortage surfaces.”
Ikeda noted that tightened supply of helium, a key component in cable productions, could weigh on Japan’s high-performing fibre optic cable makers, including Fujikura and Furukawa Electric. Fujikura rose 5% on Tuesday, while Furukawa gained 3.5%.
In other stock movements, Nojima surged 10.2% following reports that the electronics retailer plans to acquire Hitachi’s consumer appliances unit, Hitachi Global Life Solutions, for more than 100 billion yen ($630.32 million).
Hitachi shares edged 0.3% higher.
Banking shares declined, with Mitsubishi UFJ Financial Group and Mizuho Financial Group down 0.26% and 1%, respectively. Toyota Motor lost 2% in early trade.
Of the more than 1,600 stocks traded on the Tokyo Stock Exchange’s prime market, 39% rose, 56% declined and 4% remained unchanged.
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