Japanese Stocks Rise for Fourth Day as Tech Investment Optimism
Japanese stocks rose for a fourth day on the back of gains in US technology companies, which are expected to lead large-scale investment in artificial intelligence, and a pause in yen strength.
Topix Index rose 0.1% to 2,740.55 as of 9:20 a.m. Tokyo time
Nikkei advanced 0.3% to 39,756.42
Hitachi Ltd. contributed the most to the Topix Index gain, increasing 2.6%. Out of 2,119 stocks in the index, 706 rose and 1,187 fell, while 226 were unchanged.
There was buying in export-related companies such as electrical machinery and non-ferrous metals, and information and telecommunications stocks were also firm. SoftBank Group shares extended their rally into a second day, adding as much as 5.5%.
“This huge investment plan for AI has the potential to be long-lasting, given that the US has the basic technological capabilities, and it seems that Japanese companies will also benefit from it,” said Takashi Ito, a senior strategist at Nomura Securities.
Bank shares were weak as the Bank of Japan is widely expected to announce a rate hike Friday. Transportation equipment and steel stocks were also under pressure. The yen was trading at 156.34 against the dollar after strengthening as far as 154.78 on Tuesday.
Source: Bloomberg
