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Updated January 30th, 2024 at 09:09 IST

Nikkei rides wall street momentum, fuelled by tech stocks surge

At the midday break, the Nikkei had advanced by 0.24 per cent to reach 36,113.83, reflecting the broader positive sentiment in the market.

Reported by: Business Desk
Nikkei
Nikkei | Image:Shutterstock
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The Nikkei share average in Japan witnessed a positive uptick on Tuesday, aligning with the upward trend on Wall Street, as investors displayed a keen interest in technology stocks amidst growing optimism about the US economic outlook.

At the midday break, the Nikkei had advanced by 0.24 per cent to reach 36,113.83, reflecting the broader positive sentiment in the market. Yugo Tsuboi, a senior strategist at Daiwa Securities, noted, "Expectations that the US economy would make a soft landing are growing," adding that investors were drawn to stocks likely to be influenced by the global economy.

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Shares in the chip-related sector demonstrated strength, with Advantest up by 1.41 per cent, Shin-Etsu Chemical gaining 2.28 per cent, and Tokyo Electron registering a 0.36 per cent increase. Renesas Electronics, a chipmaker, emerged as the top percentage gainer on the Nikkei, rising by 3.08 per cent, while air-conditioning manufacturer Daikin Industries climbed by 0.86 per cent.

The positive momentum extended from the US, where all three major stock indexes closed higher overnight. The Nasdaq, particularly driven by tech stocks, recorded the largest percentage gain, and the S&P 500 achieved a record closing high.

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"Foreign investors continued to lead buying in Japanese stocks," highlighted Takehiko Masuzawa, trading head of Phillip Securities Japan, stressing on the strength seen in the Topix Core 30, which rose by 0.21 per cent. Game maker Nintendo led the gains in this index, rising by 2.51 per cent, while Sony Group climbed by 1.11 per cent.

The broader Topix saw a marginal increase of 0.06 per cent, with a 0.59 per cent decline in Toyota Motor limiting overall gains. Toyota Motor recently announced the suspension of shipments for certain models, including the Hilux truck and Land Cruiser 300 SUV, due to irregularities found in certification tests for diesel engines developed by affiliate Toyota Industries.

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Honda Motor saw a slight dip of 0.7 per cent, and Isuzu Motors emerged as the top percentage loser on the Nikkei, declining by 2.48 per cent.

Tsuruha Holdings witnessed a notable drop of 6.96 per cent after retail giant Aeon revealed exclusive talks with Oasis Management regarding the acquisition of shares held by the Hong Kong-based activist investor in the drugstore chain. Aeon, in contrast, edged up by 0.14 per cent.

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The market dynamics reflect a complex interplay of global economic factors, technology sector optimism, and specific challenges faced by key players in the automotive and retail sectors. As the day unfolds, market participants will closely monitor these developments for potential impacts on broader market trends.

(With Reuters inputs)

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Published January 30th, 2024 at 09:09 IST

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