Japan's Nikkei stock rises on Monday due to gains in chip-related stocks
Date
12/16/2024 1:35:14 AM
(MENAFN) Japan's NIKKEI share average edged higher on Monday, supported by gains in chip-related Stocks following a rally in their U.S. counterparts. However, broader market gains were constrained as investors remained cautious ahead of key central bank decisions scheduled for later this week.
By the midday break, the Nikkei had risen 0.2 percent to 39,533.55, while the broader Topix index dipped slightly by 0.04 percent to 2,745.46. U.S. markets had closed the previous week on a quiet note, with major indices trading flat, but the Philadelphia Semiconductor Index advanced 3.4 percent, providing a boost to the sector.
Japanese chip-related companies tracked these gains, with Advantest, a chip-testing equipment maker, rising 1.9 percent, contributing to the Nikkei’s performance. Tokyo Electron, a manufacturer of chip-making equipment, rose 0.5 percent, while Socionnext Co. Ltd., another chip-related firm, surged 9.1 percent, becoming the top performer on the benchmark index.
Despite the strong showing from the semiconductor sector, overall market movements were subdued as investors awaited policy updates. The Federal Reserve is widely expected to announce a 25-basis-point rate cut on Wednesday, followed by the Bank of Japan’s monetary policy decision on Thursday, both of which could significantly influence market sentiment.
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