TOKYO: Japan’s Nikkei share average locked in a third consecutive day of gains on Wednesday, tracking Wall Street higher to break above 38,000 points as investors continued to snap up tech-related shares.
The Nikkei finished up 2.4% at 38,460.08, retaining the 38,000-point range into the close for the first time in just over a week.
The broader Topix closed 1.7% higher at 2710.73.
Japanese shares have had a bumpy month since the benchmark index rose to a record high of 41,087.75 at the end of March. It sank as low as 36,733.06 last week on factors such as geopolitical concerns and profit-taking.
However, sentiment has turned favourable on risk assets again as fears of a re-escalation in the Middle East eased and US stocks closed higher overnight following positive earnings from top-tier companies, giving the Nikkei a boost.
“Japanese stocks are currently enjoying the bid from Wall Street as well as the weak yen,” said Charu Chanana, head of currency strategy and global market strategist at Saxo.
A weaker yen tends to boost Japanese export shares, as it raises the value of overseas profits in yen terms when firms repatriate them to Japan.
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