TOKYO: Japan’s Nikkei share average rose on Thursday after a seven-day slide, as Wall Street’s overnight gains and a softer yen buoyed investor sentiment.
The Nikkei index had risen 2.8% to 36,605.62 by the midday break after briefly rising 3% earlier in the session in broad-based buying.
The broader Topix was up 1.9% at 2,578.99. All three major US stock indexes closed higher on Wednesday, helped by gains in the technology sector.
The Philadelphia SE Semiconductor Index surged, with AI chipmaker Nvidia adding 8%. Japan’s technology shares tracked their US peers higher, offering the Nikkei the largest lift.
Chip-making equipment giant Tokyo Electron jumped 3.6%, while Advantest, which counts Nvidia among its customers, was up 7.2%. AI-focused startup investor SoftBank Group rose 7.5%.
Meanwhile, the yen softened after hitting its highest against the dollar this year on Wednesday.
“Due to the impact of the (US) consumer price index report, we are seeing the yen trend weaker. This seems to be contributing to positive movements in Japanese stocks,” said Hiroshi Namioka, chief strategist at T&D Asset Management.
The dollar recovered following the CPI report on Wednesday that indicated some stickiness in inflation, crushing bets that the Federal Reserve would cut interest rates by 50 basis points next week.
Japan’s Nikkei dragged lower by stronger yen, energy stocks
Shares of exporters, which tend to benefit from a weaker domestic currency, rebounded. Tech and entertainment conglomerate Sony Group added 1.1%. Among the Tokyo Stock Exchange’s 33 industry groupings, transport equipment climbed 2.4% and was among the top performers.
Automaker Toyota Motor gained 2.8%, while Kawasaki Heavy Industries rose about 5% to lead gains in the sector. Uniqlo parent Fast Retailing climbed 3.1% to give the Nikkei the biggest boost.
Shares of Seven & i Holdings rose more than 4% after Bloomberg News reported that Canada’s Alimentation Couche-Tard was discussing how much it could raise the offer price to buy the firm. Of the Nikkei’s 225 constituents, 208 rose, while 16 fell.
Comments
Comments are closed for this article.