Japan’s Nikkei Stock Closes at 2-week Peak as Tech Shares Track Nasdaq Higher (Update 1)

Reuters

12:25 JST, October 30, 2024 (updated at 15:45 JST)

TOKYO (Reuters) – Japan’s Nikkei share average rose to a two-week closing high on Wednesday, as technology stocks tracked the Nasdaq’s record finish overnight.

The Nikkei climbed 0.96% to 39,277.39, its highest close since Oct. 15 in its third straight session of gains. The broader Topix rose 0.81% to 2,703.72.

“There were not any strong market-moving cues and the momentum was not strong,” said Fumio Matsumoto, chief strategist at Okasan Securities.

“Investors just bought back stocks that were sold last week for fears of political turmoil. Local equities had fallen despite a weaker yen.”

The prospect that Japan’s Liberal Democratic Party and its ruling coalition partner may lose their majority in the lower house of parliament pushed the Nikkei down 2.7% last week.

Overnight, the Nasdaq scored a record closing high and the S&P 500 rose, while the Dow fell as investors digested a host of corporate earnings and awaited Google-parent Alphabet’s results that came after the market close.

In Japan, chip-related shares rose, with Disco surging 11.21% and Lasertec up 4.38%.

Chip-testing equipment maker Advantest rose 3.43% to provide the biggest boost to the Nikkei.

Technology investor SoftBank Group rose 2.62%.

Hino Motors tanked 13.34% after the truck maker flagged an annual net loss as it reported a ¥230 billion ($1.5 billion) extraordinary loss.

Drugmaker Chugai Pharmaceutical lost 4.9% to weigh on the Nikkei the most. Home interior goods retailer Nitori Holdings fell 1.44%.

Komatsu lost 1.03%, even as the construction equipment maker raised its annual operating profit forecast.

Of the 225 Nikkei components, 162 stocks rose and 59 fell, with four flat.

$1 = ¥153.3300