Nikkei hits 2-month high as investors prefer value stocks
Date
6/25/2024 8:32:11 AM
(MENAFN) On Tuesday, Japan's NIKKEI index surged to its highest closing level in over two months as investor attention shifted towards value stocks, diverging from semiconductor and high-tech companies. The weaker yen also provided a boost to export-related stocks, contributing to the market's positive momentum.
Closing up by 0.95 percent at 39,173.15 points, the Nikkei achieved its highest closing level since April 15. Similarly, the broader Topix index also experienced a notable uptick, rising by 1.72 percent to reach 2,787.37 points.
During Asian trading hours, investor sentiment towards Stocks associated with artificial intelligence and chips remained subdued. This sentiment was exacerbated by the recent decline in shares of leading American semiconductor company NVIDIA, which marked its third consecutive session of losses on Monday, contributing to a 3.02 percent drop in the Philadelphia Semiconductor Index.
Within the Nikkei, Disco shares registered a significant decline of 5.5 percent, emerging as the biggest loser in percentage terms. Similarly, Tokyo Electron shares experienced a 1.7 percent dip.
Conversely, export-related stocks benefited from the yen's depreciation, with automaker Toyota Motor's stock witnessing a notable increase of 4.6 percent. This trend reflected investors' preference for value stocks over fast-growing companies, resulting in widespread gains across the financial sector.
Insurance stocks led sector gains, posting an increase of 4.3 percent, followed closely by stocks of automakers and supplies. Notably, Fast Retailing, the parent company of clothing brand Uniqlo, saw its shares rise by 1.1 percent, contributing significantly to the Nikkei's positive performance.
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