Nikkei Soars to New Record
Japanese stocks closed sharply higher on Thursday, driven by gains in the real estate, banking, and textile sectors. The Nikkei 225 index surged 4.69% to reach an all-time high at the close of trading in Tokyo. This strengthening indicates renewed investor interest in Japanese stocks, particularly as global technology sentiment begins to recover.
Semiconductor-related stocks were the main drivers of the index's gains. Advantest surged 15.06% to 35,900, hitting a new record high. Kioxia Holdings also rose 12.27% to 103,850, while Taiyo Yuden rallied 11.20% to 18,820. These stock gains were in line with recovering optimism about demand for chips and artificial intelligence infrastructure after the global technology sector had previously experienced pressure.
Despite the sharp rise in the major indices, not all stocks performed positively. Sharp was one of the biggest drags, falling 9.69% to 601. MS&AD Insurance Group weakened 4.45%, while Kawasaki Heavy Industries fell 3.87%. However, overall, rising stocks still far outnumbered falling ones on the Tokyo Stock Exchange, with 2,260 stocks advancing, 1,248 declining, and 262 unchanged.
Japanese market volatility also increased. Nikkei Volatility rose 26.64% to 39.69, a one-month high. This increased volatility indicates that despite the market rally, investors remain wary of sharp movements, especially as technology and chip stocks remain highly sensitive to global sentiment, issuer financial reports, and the direction of US interest rate policy.
In the commodity market, oil prices also weakened. WTI for August delivery fell to around US$69.59 per barrel, while Brent weakened to around US$73 per barrel. The decline in oil prices helped ease concerns about global inflation, providing additional support for the stock market. However, gold futures also weakened to around US$3,996 per troy ounce as the US dollar remained at a high level.
In the foreign exchange market, USD/JPY edged up to around 161.86, while EUR/JPY hovered around 183.86. The continued weakness of the yen also provided positive sentiment for Japanese exporters' shares, as it could increase the competitiveness of Japanese products in the global market. Looking ahead, investors will be watching to see whether the Nikkei's rally can continue or begin to consolidate after its sharp rise to a new record. (Asd)
Source: Newsmaker.id
