TOKYO: Japan’s Nikkei share average ended higher for a second session on Tuesday as chip-related stocks rose and a weaker yen lifted sentiment.
The Nikkei rose 1.08% to close at 39,773.13. The broader Topix gained 0.97% to 2,754.69.
“The market didn’t find moving catalysts today but sentiment was lifted by the index’s rise on Monday after its sharp declines on Friday,” said Jun Morita, general manager of the research department at Chibagin Asset Management.
The Nikkei jumped 0.9% on Monday after falling 1.96% in its biggest daily decline almost in a month on Friday.
“And the market was also underpinned by the yen’s weakness,” Morita added.
The Japanese yen weakened 0.03% versus the greenback at 151.86 per dollar, holding near a 34-year high of 151.975 yen hit last month.
Finance Minister Shunichi Suzuki said authorities would not rule out any options in dealing with excessive yen moves, reiterating his warning that Tokyo is ready to act against the currency’s recent sharp declines.
A weak yen raises the value of overseas profits in yen terms when firms repatriate them to Japan.
Chip-related shares rose, with Tokyo Electron jumping 3.53% and Advantest rising 1.06%. Lasertec climbed 3.43%.
Shin-Etsu Chemical jumped 4.44% after local media reported the maker of silicon wafers plans to spend about 83 billion yen ($546 million) to build a microchip materials plant in Japan by 2026, its first domestic manufacturing facility in 56 years.
Warren Buffett’s Berkshire Hathaway, which holds stakes in Japanese trading firms, has mandated Bank of America and Mizuho to lead a yen-denominated bond sale, the IFR reported on Tuesday.
Mitsubishi Corp jumped 3.09% and Mitsui & Co gained 3.34%. Itochu was up 1.36%.
Of the 225 components in the Nikkei, 166 stocks rose and 57 fell, with two flat.
Comments
Comments are closed.