Japan's Nikkei rises over 2% as chip-related stocks track US peers higher
TOKYO: Japan’s Nikkei rose more than 2% on Monday, as chip-related shares tracked US peers ending higher last week. The Nikkei share average was up 2.28% at 66,500.29 as of 0150 GMT, while the broader Topix rose 0.81% to 4,136.31. “With US Treasury Secretary Scott Bessent seemingly curbing bond yields and stemming the fall of the yen, market volatility has fallen,” said Mamoru Shimode, chief…
Japan's Nikkei climbed over 2% on Monday, following a rise in US chip-related stocks that surged higher last week. The Nikkei share average reached 66,500.29 as of 0150 GMT, while the broader Topix gained 0.81% to 4,136.31. Mamoru Shimode, chief strategist at Resona Asset Management, explained that US Treasury Secretary Scott Bessent's efforts to curb bond yields and stabilize the yen had reduced market volatility, making it easier for investors to adopt a risk-on approach.
Chip-testing equipment manufacturer Advantest and chip-making equipment producer Tokyo Electron both increased by more than 4%. Memory company Kioxia surged 6.8%. Despite Wall Street's decline on Friday due to a strong jobs report spurring concerns of a potential US Federal Reserve rate hike, the semiconductor index still rose 3.4%.
Kokusai Electric, a Nikkei publisher, announced it would include chip equipment maker Japanese Semiconductor in the benchmark from October in a routine adjustment. However, camera and audio equipment company Sony Group and game developers Konami Group and Bandai Namco Holdings both dropped nearly 2%. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group also fell more than 1% each.
Out of more than 1,500 stocks traded on the Tokyo Stock Exchange's prime market, 48% rose, 48% fell, and 3% remained unchanged.
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