Nikkei Hits New Record, Tech & Bank Stocks “Gasping”
Japanese stocks rallied strongly on Tuesday, with the Nikkei 225 surging 3.92% to close at 54,721, setting a new record high. This rally was led by technology stocks and the financial sector, which solidly lifted the index.
Global sentiment also contributed: a rebound in precious metals boosted risk appetite, while surprisingly expansionary US factory data bolstered confidence that growth prospects and corporate profits remain quite solid. Domestically, the weakening yen also provided a boost, benefiting Japan's export-driven economy.
In the technology and AI sectors, stocks led the gains: Kioxia Holdings surged 12.7%, Advantest rose 7%, Fujikura rose 8.6%, SoftBank Group rose 4.9%, and Disco Corporation added 7.1%.
The banking sector also performed strongly. Mizuho Financial Group surged 5.8% after its quarterly earnings beat expectations and it announced additional buybacks. Mitsubishi UFJ Financial Group rose 4.6%, while Sumitomo Mitsui Financial Group gained 4.4%.
With the combination of global risk-on sentiment, a weak yen, and a boost from tech and banks, the Japanese market appears to be on fire again. The next focus is whether this rally will continue or become vulnerable to profit-taking if the yen strengthens or global sentiment changes.
Source: Newsmaker.id
