Nikkei jumps 2.5% above 70,000 to three-month high as AI stocks rally
Japan's Nikkei index experienced a remarkable rise of over 2% on Monday, breaking the 70,000 mark for the first time in three months. The surge was largely driven by chip manufacturers like Tokyo Electron and Advantest, while Kioxia's contribution fell short. The optimistic trend in Japanese stocks was fueled by Wall Street's strong performance, stemming from weaker US jobs data alleviating rate…
Japan's Nikkei Index surged above the 70,000 mark, reaching a three-month high of 70,037.61 on Monday, thanks to a notable rally in AI-related stocks. The broader Topix index also posted gains, climbing 1.16% to 4,138.57. Key drivers behind Nikkei's ascent included Tokyo Electron, Advantest, and SoftBank Group. Tokyo Electron led the charge with a 5.7% increase, while Advantest rose 4.5%, and SoftBank Group climbed 3.68%.
Despite the positive momentum, the rally remains tempered by the fact that some memory company stocks, such as Kioxia, remain nearly 50% below their mid-June record high. Mamoru Shimode, chief strategist at Resona Asset Management, noted that the AI rally might not persist and that the market will be more selective in the future.
Kioxia's modest gains could be attributed to investors who had previously suffered losses in the stock, and others who sold their shares amid the rally, leading to limited gains.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
