Japanese stocks rebound strongly as investor sentiment improves
Date
7/29/2024 8:53:48 AM
(MENAFN) On Monday, Japan's NIKKEI index rebounded significantly from the three-month low it reached in the previous session, buoyed by an uplift in investor sentiment following Wall Street's positive close at the end of last week. The Nikkei concluded the day with a 2.13 percent increase, reaching 38,468.63 points, driven by widespread gains across various sectors. Similarly, the broader Topix index experienced a 2.23 percent rise, closing at 2,759.67 points. This marked the first day of gains for the index in nine sessions, following a period of decline attributed to a stronger yen and a downturn in U.S. technology stocks.
The recovery was influenced by Wall Street's main indexes closing higher on Friday, as investors returned to major technology companies that had previously triggered a sell-off earlier in the week. Additionally, U.S. inflation data fueled optimism that the Federal Reserve might soon start cutting interest rates. According to Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, the halt in the decline of U.S. technology stocks played a positive role in boosting Japanese stocks.
Nearly all of the 225 stocks in the Nikkei index saw an increase, with significant contributions from major technology stocks. Chip-related shares, such as Tokyo Electron and Advantest, surged by 3.7 percent and 4.1 percent, respectively. SoftBank Group, known for its investments in artificial intelligence-focused startups, also saw a rise of 2.3 percent. Furthermore, all 33 sector indices on the Tokyo Stock Exchange posted gains, indicating a broad-based recovery across the market.
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