Nikkei rises as yen pauses to support export stocks

(MENAFN) The Nikkei average saw an increase as the yen's rise paused, providing support for export-oriented stocks and compensating for earlier declines in technology shares. The Nikkei advanced by 0.5 percent to 38,288.62 points, while the broader Topix index climbed by 0.7 percent to 2,680.8 points. Initially, the Nikkei had been in negative territory for most of the session, mirroring the declines of the S&P 500 and Nasdaq, as investors globally awaited Nvidia's quarterly report on Wednesday. Improved investor sentiment emerged as the yen's appreciation slowed, leading to a rebound in export-related stocks that had been hit hard when the yen reached a three-week high of 143.45 yen per dollar.

Major companies in the export sector saw gains, with Sony Corp rising by 2.8 percent, and both Honda Motor Co and Toyota Motor Corp increasing by 1.8 percent. Although shares related to the chip sector narrowed their losses towards the end of the trading day, they continued to exert downward pressure on the Nikkei index. Notable declines were observed in large technology firms, including Tokyo Electron Co, which fell by about 1 percent, and Advantest, a company with Nvidia as a client, which dropped by 1.6 percent.

The Nikkei's overall performance was enhanced by gains in other sectors. Fast Retailing, the owner of Uniqlo, saw its shares rise by 0.6 percent, and Chugai Pharmaceutical Industries experienced a 3.3 percent increase. Among the 33 sectors listed on the Tokyo Stock Exchange, mining stocks rose by 2.2 percent, and oil and coal sectors gained 1.6 percent, following a surge in crude oil prices due to concerns over potential supply disruptions. 

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