Japan’s Nikkei Stock Average Hits Multi-Month Peak on Wall Street Boost, Weaker Yen (Update 2)

Reuters

11:40 JST, October 15, 2024 (updated at 15:30 JST)

TOKYO (Reuters) – Japan’s Nikkei share average rose above the 40,000-point level on Tuesday, to touch a three-month high, as Wall Street’s strong finish overnight and a weaker yen buoyed investor sentiment.

The Nikkei hit 40,257.34, its highest since July 18, after Japanese markets reopened following a public holiday on Monday.

The benchmark index eased in the afternoon to close 0.8% higher at 39,910.55, securing a fourth straight session of gains. The broader Topix rose 0.6% to end at 2,723.57.

Wall Street ended higher on Monday, with both the S&P 500 and Dow Jones Industrial Average posting fresh record finishes.

Shares of AI darling Nvidia rose to a record close as semiconductor stocks outperformed.

That helped lift Japan’s chip-related shares, with heavyweights Tokyo Electron and Advantest rising 4.5% and 3.4%, respectively.

AI-focused startup investor SoftBank, whose subsidiary Arm Holdings climbed overnight, surged 5.8%.

Lasertec Corp rose 6.6%, the most on the index.

Japanese equities were also supported by a softer yen, which tends to boost exporters’ overseas earnings when repatriated.

The yen was not far off Monday’s low of 149.98 per U.S$., its lowest level since early August.

Along with the weaker yen, which is expected to have benefited Japanese firms this quarter, some companies like Fast Retailing have set a positive tone by posting record earnings, said Sean Teo, a sales trader at Saxo Singapore.

“We might see this trend continue throughout the earnings season,” although U.S. corporate earnings may face challenges due to a still high-interest rate environment, he said.

Energy-related shares fell to the bottom of the pack, with ENEOS Holdings down 4.7% and Inpex losing 3.3% after oil extended its declines to a third straight session.