Tokyo's stock market surges on Tuesday’s session
(MENAFN) Tokyo's Stock market surged on Tuesday, fueled by a weakening yen that hit a 37-year low, boosting export-related Stocks and driving Japan's benchmark NIKKEI 225 index above the 40,000 mark for the first time in three months.
The Nikkei 225 closed up 443.63 points, or 1.12 percent, ending the day at 40,074.69, marking its highest close since March 29. Meanwhile, the broader Topix index climbed 32.34 points, or 1.15 percent, to reach 2,856.62, setting a new 34-year high.
Market observers noted that despite an initial dip in semiconductor and other sectors due to profit-taking, investors quickly bought on dips, contributing to the overall positive sentiment throughout the trading session. Short-term investors were particularly active amid the yen's depreciation, which saw it weaken to its lowest levels against the U.S. dollar since 1987, hovering around the upper 161 range in the forex market.
In the Prime Market segment, gains were led by precision instruments, transportation equipment, and insurance stocks. Of the 1,645 issues traded, advancing stocks outnumbered declining ones, with 864 gainers, 720 losers, and 61 unchanged by the session's close.
The robust performance of Tokyo stocks underscores investor confidence bolstered by favorable currency dynamics and strategic buying amid global economic uncertainties. The market's ability to surpass key psychological thresholds reflects resilience and optimism among market participants, positioning Tokyo as a key player in the global financial landscape.
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