TOKYO: Japan’s Nikkei share average touched its highest in almost five months on Thursday, as a period of calm in the Middle East encouraged investors to buy back riskier assets, particularly chip and other high-tech shares.
The Nikkei climbed 1.7% to 39,584.58 at the close and reached 39,615.59 at its highest point during the session, a level last seen on January 31.
Artificial intelligence-linked stocks stood out, with startup investor SoftBank Group climbing 5.5% and chip-testing equipment maker Advantest advancing 5.0%. By contrast, the broader and less tech-heavy Topix rose 0.8%. A sub-index of growth shares gained 0.9%, outpacing a 0.8% increase in value shares.
Markets globally have been soothed by the ceasefire between Israel and Iran this week, which reduced the risk of disruptions to global oil supply. Japan imports virtually all of its crude, and energy-intensive manufacturing is a key national industry.
“Growth shares, particularly semiconductor-related stocks, are benefitting from the improvement in risk sentiment,” said Maki Sawada, a strategist at Nomura Securities.
Comments
Comments are closed for this article.