Nikkei Rebounds 1.3% Led by Chip and Trading House Shares
Japanese stocks rallied broadly after selling pressure in recent sessions triggered by tensions in the Middle East. The gains came as investors returned to riskier stocks amidst close monitoring of geopolitical developments.
The Nikkei Stock Average rose 1.3% to 54,387.72 in the latest trading session. This increase was driven by the strengthening of the technology sector, particularly chip-related stocks, which were the main driver of the recovery.
Among individual stocks, Kioxia Holdings rose 5.4%, reflecting strong interest in semiconductor companies and their related supply chains. The performance of chip stocks has been in the spotlight due to their sensitivity to the global technology cycle and demand expectations.
In addition to technology, trading house stocks also supported the index. Mitsubishi Corp. rose 4.0%, reinforcing the role of commodity-oriented and global trading stocks in the Nikkei's movement.
In the foreign exchange market, the US dollar was at 158.86 yen, strengthening compared to around 159.43 yen at the close of the Tokyo stock market on Tuesday. This exchange rate movement remains a concern as changes in the yen's value could impact the profit prospects of Japanese exporters.
Looking ahead, investors are monitoring crude oil price movements and the Japanese government's potential response to the conflict and potential disruptions to energy and petrochemical supplies. These factors are considered likely to influence risk sentiment and the direction of the index's movement in the near term. (asd)
Source: Newsmaker.id
