Japanese Stocks Continue to Rise, Chips and AI Lead the Rally
Japanese stocks rose for a second day as signs emerged that Iran would join talks with the United States ahead of the Middle East ceasefire deadline. Market sentiment was boosted by hopes of a de-escalation, although risks remain high as negotiations remain uncertain.
In Tuesday morning trading, the Topix index rose 0.1% to 3,779.91 (9:42 a.m. Tokyo time), while the Nikkei index gained 1% to 59,401.00. Of the 1,651 Topix stocks, 850 rose, 711 fell, and 90 were unchanged, indicating relatively selective gains.
Sectorally, electric appliances and nonferrous metals led the gains, while banking and automotive stocks were among the decliners. Semiconductor-related stocks such as Tokyo Electron and Advantest were key contributors, tracking the rise in the SOX index on Wall Street.
Geopolitical catalysts remain a concern after US President Donald Trump said there was little chance of extending the two-week ceasefire with Iran, increasing the urgency of a deal. Hideyuki Ishiguro, chief strategist at Nomura Asset Management, believes expectations of the start of a second round of US-Iran negotiations are supporting the market by raising hopes of an end to the war, while rising semiconductor stocks in the US have boosted interest in chip and AI stocks in Japan. (asd)
Source: Newsmaker.id
