Nikkei gains as yen rally stalls, export stocks rebound
Date
8/27/2024 7:41:15 AM
(MENAFN) On Tuesday, Japan's NIKKEI average experienced a rise, buoyed by a halt in the yen's appreciation, which helped bolster export-related Stocks and counterbalance earlier losses from a downturn in technology shares. The Nikkei increased by 0.5 percent to close at 38,288.62 points, while the broader Topix index rose 0.7 percent to 2,680.8 points. Throughout much of the trading session, the Nikkei had been in decline, mirroring the performance of the S&P 500 and Nasdaq, as global investors awaited Nvidia's quarterly report, scheduled for release on Wednesday.
Investor sentiment shifted positively as the yen's upward momentum stalled, leading to renewed buying in export-oriented stocks that had been under pressure in the previous session when the yen had reached a three-week high of 143.45 yen per dollar. Major companies like Sony Group saw their shares increase by 2.8 percent, and both Honda Motor and Toyota Motor shares rose by 1.8 percent. However, technology stocks continued to be a drag on the Nikkei, with significant losses in chip-related shares. Notably, Tokyo Electron saw a decline of about 1 percent, and Advantest, which has Nvidia among its clients, fell by 1.6 percent. Lasertech Corp. was the largest percentage loser, dropping 4.3 percent.
The Nikkei's gains were further supported by strong performances from Fast Retailing, the owner of the Uniqlo chain, which saw a 0.6 percent increase in its shares, and Chugai Pharmaceutical Industries, which rose by 3.3 percent. Among the 33 sectors on the Tokyo Stock Exchange, mining stocks rose by 2.2 percent, and oil and coal sectors saw a 1.6 percent increase, driven by higher oil prices amid concerns about potential supply disruptions.
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