Japan’s Nikkei Stock Average Makes Hits Three-Week Closing High in Widespread Rally (UPDATE 1)

Reuters

12:47 JST, December 3, 2024 (updated at 17:00 JST)

TOKYO (Reuters) – Japan’s Nikkei share average hit a three-week closing high on Tuesday as heavyweight chip stocks led a broad rally on the back of Wall Street’s strong overnight finish.

The Nikkei closed up 1.9% at 39,248.86 after rallying more than 2% during trade.

The broader Topix finished 1.4% higher at 2,753.58.

The Nasdaq and the S&P 500 indexes scored record closing highs on Monday, boosted by tech-related shares following the market’s strong November gains.

Japan’s major tech shares followed suit, with chip-making equipment giant Tokyo Electron up 4.3% to contribute 98 points to the Nikkei’s near 736-point gain.

AI-focused startup investor SoftBank Group jumped 2.7% and chip-testing equipment maker Advantest added 3.9%.

Fellow chip-related firm Disco Corp and peer Lasertec surged 6.1% and 4.3%, respectively, to land among some of the Nikkei’s best performers by percentage.

Gains went beyond chip shares, with 197 of the Nikkei’s 225 constituents advancing as investors snapped up stocks, while 25 declined. Three were untraded.

“Last week, Japan’s stock market saw caution around news related to tariff increases under the incoming Trump administration,” said Maki Sawada, a strategist at Nomura Securities.

Losses were concentrated among economically sensitive sectors, Sawada said, adding that investors appeared to be buying back those shares this week.

Shipping and electric machinery, considered to be cyclical sectors, were among top performers on the Tokyo Stock Exchange’s 33 industry sectors.

Shipper Kawasaki Kisen Kaisha advanced 4.9%.

Among other major shares, Uniqlo-owner Fast Retailing offered the biggest single lift to the Nikkei with a 2.5% rise.

Electronic components maker TDK gained 1.9% and semiconductor silicon wafer maker Shin-Etsu Chemical added 1.2%.

Automakers Toyota and Honda gained 1.6% and 1.4%, respectively.