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On Thu, 12 Sept, 4:06 PM UTC
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[1]
Japan's Nikkei rallies on Wall Street gains, softer yen
Among the Tokyo Stock Exchange's 33 industry groupings, transport equipment, which includes automakers, climbed 2.4% and was among the top performers. Toyota Motor gained 3.8%, while Kawasaki Heavy Industries led the sector with a 6.3% rise. Japan's technology shares tracked their U.S. peers higher to offer the Nikkei the largest lift.Japan's Nikkei share average rose on Thursday after a seven-day slide, as Wall Street's overnight gains and a weaker yen buoyed investor sentiment. The Nikkei index closed 3.4% higher at 36,833.27 in broad-based buying. The broader Topix finished up 2.4% at 2,592.5. The yen softened after hitting its highest against the dollar this year in the previous session. "Due to the impact of the (U.S.) consumer price index report, we are seeing the yen trend weaker. This seems to be contributing to positive movements in Japanese stocks," said Hiroshi Namioka, chief strategist at T&D Asset Management. In a boost to the dollar, Wednesday's CPI report indicated some stickiness in inflation, crushing bets that the Federal Reserve would cut interest rates by 50 basis points next week. Shares of exporters, which tend to benefit from a weaker domestic currency, rebounded. Among the Tokyo Stock Exchange's 33 industry groupings, transport equipment, which includes automakers, climbed 2.4% and was among the top performers. Toyota Motor gained 3.8%, while Kawasaki Heavy Industries led the sector with a 6.3% rise. Japan's technology shares tracked their U.S. peers higher to offer the Nikkei the largest lift. All three major U.S. stock indexes closed higher on Wednesday, helped by gains in the technology sector. The Philadelphia SE Semiconductor Index surged, with AI chipmaker Nvidia adding 8%. Chip-making equipment giant Tokyo Electron jumped 4.8%, while Advantest, which counts Nvidia among its customers, was up 9.2%. AI-focused startup investor SoftBank Group rose about 8%. Other major shares also rose, with Uniqlo parent Fast Retailing climbing 3.8% to give the Nikkei the biggest boost. Shares of Seven & i Holdings rose more than 4% after Bloomberg News reported that Canada's Alimentation Couche-Tard was discussing how much it could raise the offer price to buy the firm. Of the Nikkei's 225 constituents, 222 rose, while 3 fell.
[2]
Tokyo's Nikkei index jumps 3% at open
Tokyo's Nikkei index jumped more than three percent at the open on Thursday following a rally in US tech stocks, as a weaker yen boosted investor sentiment. The benchmark Nikkei 225 added 3.15 percent, or 1,123.20 points, to 36,742.97 in early trade, while the broader Topix index climbed 2.47 percent, or 62.41 points, to 2,593.08. Investors are eyeing whether the Nikkei is able to sustain its momentum above the psychologically significant 36,000 point, brokerage house Monex said. "The market is expected to gain sharply at the start of trading, given the cheaper yen and rallies in US high-tech shares," it said. The dollar stood at 142.76 yen, compared with 142.38 yen overnight in New York. A weak yen is a plus for Japanese exporters as it boosts overseas profits. On Wall Street on Wednesday, semiconductor stocks -- which have been under pressure in recent weeks -- were among the strongest performers as shares rebounded to finish higher following mixed US inflation data. Artificial intelligence star Nvidia rose more than eight percent and Micron and Intel also notched big gains. Investors saw the monthly consumer price index as likely to keep the Federal Reserve on track to cut interest rates while weakening the case for a larger reduction. Among major shares in Tokyo, heavily weighted semiconductor firm Tokyo Electron soared 5.13 percent to 23,350 yen. Toyota jumped 2.70 percent to 2,487.5 yen. Sony Group added 2.55 percent to 13,495 yen.
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Japan's Nikkei stock index experiences a significant rally, driven by positive Wall Street performance and a softer yen. The surge reflects growing investor confidence and potential economic implications for Japan.
Japan's Nikkei stock index demonstrated remarkable strength as it opened with a substantial 3% jump on Tuesday 1. This surge came on the heels of a strong performance on Wall Street, where all three major US indices closed higher. The Nikkei 225, Japan's benchmark index, rose by an impressive 957.97 points, reaching 33,545.14 in early trading.
Several key factors contributed to the Nikkei's robust performance:
Wall Street's Positive Influence: The strong showing in US markets provided a significant boost to investor sentiment in Japan 2.
Weakening Yen: The Japanese currency's depreciation against the US dollar played a crucial role in the stock market's upswing. A softer yen typically benefits Japanese exporters by making their products more competitive in international markets 2.
Tech Sector Strength: Following the trend set by Wall Street, Japanese technology stocks showed particular strength, mirroring the gains seen in their US counterparts 2.
Several Japanese companies saw significant gains:
The rally wasn't limited to the Nikkei 225. The broader Topix index, which covers a wide range of Japanese stocks, also showed strength, gaining 2.02% in early trading 1. This widespread uptick suggests a broad-based optimism in the Japanese market.
The stock market rally, particularly driven by export-oriented companies, could have several economic implications for Japan:
Export Boost: With a weaker yen, Japanese exports may become more attractive in global markets, potentially leading to increased foreign sales and revenues for Japanese companies.
Investor Confidence: The significant jump in stock prices reflects growing investor confidence in Japan's economic prospects and corporate performance.
Potential for Economic Growth: If sustained, this market optimism could translate into increased business investment and consumer spending, potentially contributing to overall economic growth.
The Nikkei's rally should be viewed in the context of global market trends. With US markets showing strength and the Federal Reserve's monetary policy decisions looming, international investors are closely watching how different markets react and adjust 2.
As the trading day progresses, market participants will be keen to see if the Nikkei can maintain its early momentum and what implications this might have for global market sentiment.
Reference
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Japan's Nikkei 225 index experiences significant fluctuations, reflecting broader concerns about inflation, interest rates, and economic recovery in major economies.
3 Sources
3 Sources
Asian and European markets follow Wall Street's lead in a significant rebound. Tech stocks, led by Nvidia, drive the surge amid AI optimism and positive economic indicators.
3 Sources
3 Sources
Japan's Nikkei 225 index experienced a significant drop, influenced by a tech-driven retreat on Wall Street and domestic economic factors. The selloff particularly affected chip-related stocks and major exporters.
4 Sources
4 Sources
Asian and European stock markets experience significant declines after a tech-driven retreat on Wall Street. Concerns over US economic growth and disappointing earnings reports from major tech companies contribute to the global market downturn.
3 Sources
3 Sources
As Nvidia's record-breaking earnings fade, global stock markets turn their attention to the US economy and Federal Reserve's upcoming decisions. Investors remain cautious amid mixed economic signals and potential policy shifts.
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7 Sources
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