Japan’s Nikkei Stock Hits Two-Week High as Tech Shares Track Nasdaq’s Record High

Reuters

12:25 JST, October 30, 2024

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

The Nikkei was up 1.25% at 39,390.49 by the midday break, its highest level since Oct. 15.

The broader Topix rose 1.13% to 2,712.26.

“There were not any strong market-moving cues and the momentum is 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 on Tuesday, 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 12.4% and Lasertec up 5.17%.

Chip-testing equipment maker Advantest rose 2.62% to provide the biggest boost to the Nikkei. Chip-making equipment maker Tokyo Electron rose 1.19%.

Technology investor SoftBank Group rose 2.84%.

Hino Motors tanked 12.36% and was the biggest loser on the Nikkei. The truck maker flagged an annual net loss as it posted a ¥230 billion ($1.5 billion) extraordinary loss.

Drugmaker Chugai Pharmaceutical lost 3.27% to weigh on the Nikkei the most. Home interior goods retailer Nitori Holdings fell 1.23%.

Komatsu lost 2.16% even as the construction equipment maker raised its annual operating profit forecast.

Of the 225 Nikkei components, 191 stocks rose and 34 fell.

$1 = ¥153.3300