Nikkei rebounds from three-month low amid positive market sentiment

(MENAFN) Japan’s Nikkei index rebounded from a three-month low reached in the previous session, buoyed by improved investor sentiment following a positive close on Wall Street at the end of last week. The Nikkei index ended the day up by 2.13 percent, closing at 38,468.63, while the broader Topix index increased by 2.23 percent, reaching 2,759.67. This marked the first day of gains in nine sessions, with the index having hit its lowest levels since late April due to a stronger yen and a decline in U.S. technology stocks.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, attributed the rise in Japanese stocks to the stabilization of U.S. technology shares, which had previously been declining. The positive sentiment led to broad-based gains, with all but 11 of the 225 Nikkei stocks experiencing an increase. Notably, chip-related shares performed well, with Tokyo Electron and Advantest rising by 3.7 percent and 4.1 percent, respectively. Additionally, SoftBank Group, which invests in AI-focused startups, saw its shares increase by 2.3 percent.

All 33 sector indexes on the Tokyo Stock Exchange posted gains, reflecting widespread positive momentum. Shin-Etsu Chemical Co. saw a significant jump of 8.6 percent after surpassing operating profit expectations for the April-June period. Conversely, Eisai Co. experienced a sharp decline of approximately 13 percent following the European Union’s regulator decision to reject its drug Lekimbe, which was intended for treating early-onset Alzheimer’s disease. 

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