FX168 Financial News (Asia Pacific) News On Wednesday (June 26), Japanese stocks rose more than 1%, reaching a two-month closing high. As investors scrambled to buy technology stocks, chip-related heavyweight stocks rose sharply.
By the close, the Nikkei index rose 1.26% to close at 39,694.50 points, the highest closing level since April 9, and once hit a three-month high of 39,788.63 points in the intraday period. The broader TSE Index rose 0.56% to 2,802.95 points. #日本市场 #
Electronic machinery manufacturers rose 1.4%, leading the way in the Tokyo Stock Exchange's 33 industry sub-indices.
In terms of individual stocks, Advantest, one of Nvidia's customers, surged 7%, becoming the biggest increase of the day, while Tokyo Electronics, another chip-related company, rose 3.6%. Together, these two stocks boosted the Nikkei Index by 231 points.
Among other heavyweight stocks on Wednesday, express sales companies rose 1%, AI-based startup investor SoftBank Group rose 1.6%, and electrical components manufacturer TDK rose 2.5%.
Among the constituent stocks of the Nikkei 225 Index, the biggest increases were:
Advantest Corp. (TYO: 6857) had the biggest increase, up 7.02%, or 408.00 points, to close at 6,222.00;
Sumitomo Dainippon Pharma Co Ltd (TYO: 4506) rose 7.00%, or 25.00 points, to close at 382.00;
Tokyo Electron Ltd. (TYO: 8035) rose 3.63%, or 1,250.00 points, to close at 35,650.00.
Stocks that have dropped the most include:
JTEKT Corp. (TYO: 6473), down 2.21%, or 25.00 points, to close at 1,105.50;
SoftBank Corp (TYO: 9434) fell 2.12%, or 42.00 points, to close at 1,938.00;
IHI Corp. (TYO: 7013) fell 1.99%, or 89.00 points, to close at 4,388.00.
The Nikkei Volatility Index, which measures the implied volatility of Nikkei 225 options, fell 1.53% to 16.74.
There are three driving factors behind today's sharp rise in Japanese stocks: Nvidia's rebound brought smooth winds, dividend reinvestment, and technical breakthroughs.
After experiencing a slump at the beginning of the week, Japanese technology-related stocks rebounded, aided by the strong performance of artificial intelligence chip company Nvidia and other US tech giants yesterday.
“The rise in US technology stocks brought a strong tailwind to the Japanese stock market and became the driving force for the day,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Ichikawa of Sumitomo Mitsui DS Asset Management said that after this Monday's batch of dividends, market participants may also re-enter dividends into the market, bringing a certain amount of additional support to the stock market.
Dividends have increased as Japan pushes ahead with corporate governance reforms. These reforms are one of the important supports that helped the Nikkei Index reach its historic high of 41,087.75 on March 22.
The Nikkei Index's breakthrough on Wednesday further boosted investor sentiment. After the April correction, it has been difficult for the index to break through the 39,400 point level due to weak company revenue prospects and concerns about currency and bond market fluctuations.
Furthermore, investors are still awaiting further clarification of the Bank of Japan's monetary policy path.