Updated January 10th, 2024 at 08:44 IST
Japanese stocks soar to nearly 34-year high on tech surge, weaker yen
The Nikkei index climbed 1.6 per cent to 34,316.66, breaching the 34,000 mark for the first time since March 1990.
Japanese shares surge: Japanese stocks surged to their highest level in almost 34 years on Wednesday, propelled by gains in chip-related shares mirroring the performance of US technology stocks and a weakened yen supporting exporters.
The Nikkei index climbed 1.6 per cent to 34,316.66, breaching the 34,000 mark for the first time since March 1990. The broader Topix also rose 1.12 per cent to 2,440.03, reaching its highest point since March 1990.
Investors were motivated to buy more stocks as the Nikkei hit the 34,000 milestone, explained Masahiro Ichikawa, Chief Market Strategist at Sumitomo Mitsui DS Asset Management.
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While the S&P 500 and Dow experienced declines overnight, the tech-heavy Nasdaq showed marginal gains. The softer yen acted as a positive factor for Japanese stocks, countering its earlier strengthening against the dollar at the end of the previous year, according to Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
The dollar's overnight rise against the yen, with US inflation data anticipated on Thursday for insights into the Federal Reserve's interest rate trajectory, further supported Japanese exporters. A weakened yen enhances the value of overseas profits in yen terms when repatriated to Japan.
Fast Retailing, operator of the Uniqlo clothing retail chain, led gains by rising 2.64 per cent, contributing significantly to the Nikkei's boost. Tokyo Electron, a chip-making equipment manufacturer, gained 2.01 per cent, and Kyocera, a ceramics maker, saw a 5 per cent increase.
Daiichi Sankyo, a drug maker, rose by 5 per cent, emerging as the top contributor to the Topix. Nintendo, a game maker, increased by 3.87 per cent, while Sony Group, specializing in audit equipment and cameras, rose by 1.99 per cent. Olympus, a medical equipment maker, recorded the highest percentage gain on the Nikkei with a 5.9 per cent advance.
(With Reuters inputs)
Published January 10th, 2024 at 08:05 IST