Topix Gains Limited, Market Remains Selective Amid Iran
Japanese stocks rallied on Thursday morning, tracking gains on Wall Street after optimism about efforts to reach a ceasefire in the Middle East conflict helped ease concerns about a global economic slowdown. However, the rally was capped by persistently high oil prices, keeping investors cautious about the risk of energy inflation and its impact on Japanese import costs.
The Topix rose 0.5% to 3,670.43 at 9:25 a.m. Tokyo time, while the Nikkei gained 0.7% to 54,122.55. The gains were uneven: of the 1,655 Topix stocks, 781 rose and 775 fell, reflecting a still-selective market.
SoftBank Group was the main supporter, rising as much as 7.2%. Strengthening was also seen in automotive, machinery, chemicals, and trading houses. The mining, shipping, and oil products sectors also strengthened, while pharmaceuticals and retail lagged.
Nomura believes that although a resolution to the war remains far away, steps are being taken to avoid a worst-case scenario. However, the market remains skeptical about the effectiveness of the talks, as the US continues to deploy troops to the region. Under these conditions, semiconductor-related stocks are starting to be viewed more defensively, as they are considered more resilient to fluctuations in the Iran conflict and oil prices.
Source: Newsmaker.id
