TOKYO: Japan’s Nikkei share average rose above the 40,000-point level on Tuesday, to touch a three-month high, as Wall Street’s strong finish overnight and a weaker yen buoyed investor sentiment.
The Nikkei hit 40,257.34, its highest since July 18, after Japanese markets reopened following a public holiday on Monday.
The benchmark index eased in the afternoon to close 0.8% higher at 39,910.55, securing a fourth straight session of gains. The broader Topix rose 0.6% to end at 2,723.57.
Wall Street ended higher on Monday, with both the S&P 500 and Dow Jones Industrial Average posting fresh record finishes.
Shares of AI darling Nvidia rose to a record close as semiconductor stocks outperformed.
That helped lift Japan’s chip-related shares, with heavyweights Tokyo Electron and Advantest rising 4.5% and 3.4%, respectively.
AI-focused startup investor SoftBank, whose subsidiary Arm Holdings climbed overnight, surged 5.8%.
Lasertec Corp rose 6.6%, the most on the index.
Japanese equities were also supported by a softer yen, which tends to boost exporters’ overseas earnings when repatriated.
The yen was not far off Monday’s low of 149.98 per US dollar, its lowest level since early August.
Along with the weaker yen, which is expected to have benefited Japanese firms this quarter, some companies like Fast Retailing have set a positive tone by posting record earnings, said Sean Teo, a sales trader at Saxo Singapore.
Source: Brecorder
