Japanese stocks show mixed results as yen weakens market movements

(MENAFN) The Nikkei index ended its trading session higher yesterday, largely driven by a continued decline in the value of the yen against the U.S. dollar. Closing at 38,371.76 points, the Nikkei rose by 0.22 percent, reversing the downward trend it experienced at the start of the day. The yen's persistent weakness throughout the session provided support for the index, as it generally benefits export-heavy companies whose competitiveness improves with a cheaper yen. However, the broader Topix index showed a slight decline, falling 0.08 percent, indicating mixed market sentiments across different sectors.

In the semiconductor sector, stock movements were varied, reflecting the broader uncertainty within the tech industry. Advantest Co Ltd, a company known for providing chip testing equipment to firms like Nvidia, posted a strong gain of 4.18 percent, marking the largest points increase on the Nikkei. Another semiconductor-related company, Lasertech Co Ltd, also saw its shares rise by 4.19 percent. In contrast, Tokyo Electron, another chip testing equipment maker, saw a minor decline, reflecting some cautious sentiment among investors. Meanwhile, SoftBank Group Corp, a significant player in AI-focused startup investments, experienced a notable drop of 2.29 percent, signaling concerns over the profitability and valuation of its AI-focused ventures amid a fluctuating yen. The yen's depreciation, approximately 0.4 percent to 144.47 per dollar during trading, continued to influence these market dynamics.

Automotive stocks also displayed mixed results, underscoring the diverse reactions within Japan's manufacturing sector. Toyota Motor Corp enjoyed a solid increase, rising by 3.88 percent, while Honda Corp recorded a more modest gain of 0.7 percent. However, not all automakers benefited; shares of Nissan and Mazda dipped by 0.65 percent and 0.16 percent, respectively, as differing company-specific factors and overall market sentiment played roles. On a more positive note, Rakuten Group led the gains on the Nikkei, surging by 9.19 percent after several analysts raised their target price for the group, reflecting optimism about its future growth prospects. Overall, the mixed performance of different sectors highlights the nuanced investor sentiment shaped by currency movements, sector-specific factors, and broader economic conditions.

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