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Updated April 2nd, 2024 at 10:38 IST

Nikkei rebounds, hindered by concerns over currency intervention

The Nikkei index climbed 0.13% to reach 39,853.20 by the midday break, recovering from a two-week low driven by profit-booking in the previous session.

Reported by: Business Desk
Japan's Nikkei rebounds
Japan's Nikkei rebounds | Image:Pexels
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Nikkei rebounds: Japan's Nikkei share average staged a rebound on Tuesday, briefly surpassing the 40,000-point mark before retreating amid concerns over potential currency intervention by the central bank.

The Nikkei index climbed 0.13 per cent to reach 39,853.20 by the midday break, recovering from a two-week low driven by profit-booking in the previous session.

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Despite its 19 per cent gain this year and reaching record highs above 40,000 last month, traders remained cautious, taking advantage of the recent dip to buy stocks, particularly those of prominent companies like Fast Retailing and Tokyo Electron.

Technology-related stocks, buoyed by the AI frenzy boosting U.S. semiconductor peers, provided major support to the index. 

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Chip-making equipment maker Lasertec and semiconductor manufacturer Shin-Etsu Chemical saw notable gains.

However, concerns over potential currency intervention by the central bank cast a shadow over the market sentiment. 

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The yen's weakness, while beneficial for exporters, raised fears of intervention, which could lead to a rapid appreciation of the currency and subsequent market volatility.

Japanese Finance Minister Shunichi Suzuki reassured that authorities were prepared to take necessary actions to address excessive volatility in the currency market.

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Despite the rebound, the broader Topix index slipped by 0.2 per cent, reflecting the cautious atmosphere prevailing in the market.

(With Reuters Inputs)

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Published April 2nd, 2024 at 10:38 IST

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