Japan's Nikkei rises, led by technology stocks as U.S. economic optimism boosts market sentiment
(MENAFN) Japan's NIKKEI share average closed higher on Friday, driven by a surge in technology stocks, as traders reacted positively to the record-setting close of the Dow Jones Industrial Average following strong U.S. economic data. The Nikkei index climbed 0.74 percent, ending at 38,647.75 points. While the index remained flat for the week, it experienced a decline of over one percent for the month. Similarly, the broader Topix index gained 0.73 percent, closing at 2,712.63 points, and posted a modest weekly gain of 0.3 percent, though it also suffered a monthly loss of about 3 percent — its most significant drop since October.
The rally in domestic stocks was partly fueled by the robust performance of the Dow Jones, despite mixed trading conditions in the U.S. market. Naoki Fujiwara, general manager at Shinkin Asset Management, noted that chip-related stocks in Japan rose even as the Nasdaq saw a decline, suggesting that Nvidia, a key player in the semiconductor sector, is no longer the sole market-moving indicator it once was. The Dow Jones set a new record close on Thursday, even as Nvidia's shares fell following a less-than-impressive forecast, underscoring a divergence in investor sentiment around tech stocks.
The gains in the Nikkei were further supported by upbeat data on the U.S. economy, which showed stronger-than-expected growth fueled by consumer spending, reinforcing hopes that a recession in the United States might be avoided. Among the top performers, Advantest Inc., a Japanese company specializing in chip testing equipment, soared 3.7 percent, providing the biggest lift to the Nikkei. Other technology players, such as Tokyo Electron, which produces chip-making equipment, added 0.3 percent, and SoftBank Group Corp., a significant investor in technology startups, rose by 3.2 percent. On the downside, Terumo Corp., a medical equipment manufacturer, saw its shares drop 2.9 percent, dragging down the Nikkei after news emerged that its shareholders planned to sell shares worth 73.2 billion yen (approximately USD505.56 million) to overseas investors.
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