Nikkei Rises, Japanese Chip Stocks Rebound
The Japanese stock market rebounded on Tuesday (July 14th) after earlier weakening. The Nikkei 225 index rose 0.74% to close at 67,743, driven by a rebound in semiconductor and technology stocks.
This increase occurred as investors began bargain hunting, or seeking out stocks that had fallen too far. Japanese technology stocks managed to move positively even though Wall Street was previously pressured by weakening chip stocks.
Several technology stocks supporting the Nikkei included Kioxia Holdings, which rose 3%, SoftBank Group, which rose 3.3%, Advantest, which rose 3.3%, SUMCO Corp, which rose 3.4%, and SCREEN Holdings, which rose 2.3%.
However, investors remained wary of risks from the Middle East. President Donald Trump announced plans to reimpose a blockade on Iranian shipping passing through the Strait of Hormuz. This move sent oil prices soaring and rekindled inflation concerns.
As for the market impact, the rebound in technology stocks helped support the Japanese stock exchange in the short term. However, if oil prices continue to rise and inflation becomes a threat again, global central banks could potentially maintain high interest rates or even raise them again. This could still limit future index gains. (asd)
Source: Newsmaker.id
