Saturday, November 26

Japan’s Nikkei hits near 8-week high on tech boost


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TOKYO — Japan’s Nikkei share average hit a near eight-week high on Tuesday, as investors scooped up chips and other technology stocks, with overnight Wall Street gains aiding sentiment.

The Nikkei had risen 1.28% to 27,879.70 by the midday break, after jumping to as high as 27,943.27, its highest since Sept. 15.

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The broader Topix climbed 1.08% to 1,954.96.

“The market was highly influenced by the performance of US equities overnight,” said Yugo Tsuboi, senior strategist at Daiwa Securities.

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“Particularly growth shares were strong. This is because foreign investors, who oversold Japanese shares, bought back those shares. This could be a sigh that they saw a momentum coming back in the Japanese market.”

Chip related Tokyo Electron and Advantest 3.3% and 2.32%, respectively.

Technology investor SoftBank Group jumped 4.85% to become the biggest boost for the Nikkei. Phone company KDDI gained 1.03%.

Audio equipment and game maker Sony Group jumped 3.83%.

All but two of the 33 industry sub-indexes on the Tokyo Stock Exchange rose, with the insurance sector leading the gains.

Railways fell 0.02%, with Central Japan Railway losing 0.44% and Kintetsu Group Holdings falling 0.92%.

Financial services firm Orix fell 2.91%, after posting a 17% drop in its quarterly net profit.

Toshiba fell 1.72%, after a report said private equity fund Japan Industrial Partners submitted a bid to buy the conglomerate for $15 billion that lacks key commitments from banks. (Reporting by Junko Fujita; Editing by Rashmi Aich)



financialpost.com

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