Japan's Nikkei rises over 2pct as chip-related stocks track US peers higher
TOKYO: Japan's Nikkei rose more than two per cent on Monday, as chip-related shares tracked US peers ending higher last week.
Japan's Nikkei index surged over two percent on Monday, tracking gains among US chip-related stocks last week, bringing the Nikkei share average to 66,500.29 as of 01:50 GMT on Tuesday. The broader Topix index also rose 0.81 percent to 4,136.31. With US Treasury Secretary Scott Bessent curbing bond yields and reducing the yen's decline, market volatility has lessened, making it easier for investors to adopt a risk-on approach, according to Mamoru Shimode, chief strategist at Resona Asset Management.
Advantest, a chip-testing equipment maker, and Tokyo Electron, a chip-making equipment manufacturer, both jumped more than four percent each. Memory company Kioxia soared 6.8 percent. Despite Wall Street's decline on Friday due to a robust jobs report suggesting a higher probability of the US Federal Reserve raising interest rates this month, the semiconductor index of the Nikkei rose 3.4 percent.
Kokusai Electric, a Japanese chip equipment maker, saw an 8 percent increase after the Nikkei, which publishes the 225-stock average, announced on Friday that it would be added to the benchmark from October in a regular reshuffle. However, camera and audio equipment maker Sony Group fell by two percent, while game developers Konami Group and Bandai Namco Holdings dropped nearly two percent each. Shares of Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group also slipped more than one percent each.
Out of over 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 48 percent rose, 48 percent fell, and three percent remained flat.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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