Nikkei Rallies on Weaker Yen, Buybacks of Semiconductor Stocks

Jiji Press

17:36 JST, July 24, 2023

TOKYO (Jiji Press) — The benchmark Nikkei stock average staged a sharp rebound Monday, aided by the yen’s weakening against the dollar and renewed buying interest in semiconductor-related issues.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section jumped 396.69 points, or 1.23%, to finish at 32,700.94, after falling for two market days. The broader TOPIX index extended gains by 18.98 points, or 0.84%, to end at 2,281.18.

Wide-ranging stocks attracted buying from the outset thanks to the yen’s downtrend amid expectations that the Bank of Japan will refrain from modifying the bank’s ultraeasy policy at its two-day policy meeting through Friday.

Chip-linked names, such as Nikkei heavyweights Advantest and Tokyo Electron, were hunted following their recent sell-offs. Steelmakers also contributed markedly to the market advance.

“Materials manufacturers were upbeat almost across the board reflecting receded pessimism over the U.S. economy,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

After the early morning spurt, however, the market lost steam, although it remained high above the flat line for the rest of the session.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said active transactions were held in check ahead of key events including a U.S. monetary policy meeting Tues.-Wed., the BOJ meeting and earnings announcements.