Japan’s Nikkei Closes at 33-year High on Tech Boost

Reuters

16:38 JST, January 9, 2024

TOKYO (Reuters) – Japan’s Nikkei share average closed at a 33-year high on Tuesday, as investors snapped up chip-related stocks tracking an overnight Wall Street rally in technology shares.

The Nikkei rose 1.16% to finish at 33763.18, its highest since March 1990. Of the 225 stocks in the index, 156 shares advanced.

The broader Topix index rose 0.82% to 2,413.09.

Chip-related stocks led gains in the Nikkei after tracking upbeat performances by U.S. chipmakers Nvidia and Advanced Micro Devices on the Wall Street. .N

Shares of Tokyo Electron gained 3.28%, while Advantest jumped 6.05%, lifting the Nikkei by around 154 points.

DeNA, which mainly provides online services, topped the gainers with a 9% jump following an after-market announcement on Friday that it would begin preparations to list shares for its taxi app partner company GO Inc.

Nintendo, which owns 12% of DeNA shares, also came in as the top performer with a 4.4% jump.

The Nikkei clocked its best year in a decade in 2023, underpinned by expectations of better governance.

After initially pulling back at the start of 2024, the benchmark index recovered to hit its highest since Japan’s “bubble economy” of the late 1980s and early 1990s.

“I think a correction may not come as soon as next week or this week but I’m a bit cautious, if not a little bit pessimistic, over the near term,” as markets assess the latest policy decisions by both the Fed and Bank of Japan over the next few months, said Naka Matsuzawa, chief macro strategist at Nomura.

Energy shares were among the worst performers, after oil prices fell about 4% on Monday on sharp price cuts by top exporter Saudi Arabia.

The Tokyo Stock Exchange’s mining stock sub-index dropped 1.23%, while marine shipping fell 2.26% to lead losses among the 33 industry groups.