Sunday, February 25, 2024
spot_img
HomeStocks NewsJapan's Nikkei soars to 34-year high on chip shares, earnings

Japan’s Nikkei soars to 34-year high on chip shares, earnings

TOKYO (Reuters) – Japan’s Nikkei share average jumped to a fresh 34-year high on Tuesday as trading resumed after a long holiday weekend, with tech-related shares and strong corporate earnings supporting the benchmark stock index.

The Nikkei had climbed 2.44% to 37,798.89 by the midday close, hitting its highest level since February 1990. Out of the index’s 225 constituents, 185 gained while 39 declined.

The broader Topix was up 1.85%.

Japanese markets were closed on Monday for a national holiday.

“The Nikkei rally has got an extra bump higher with ARM Holdings (LON:ARM) being the latest addition to the AI frenzy after strong results last week,” said Charu Chanana, head of currency strategy at Saxo Markets.

Shares of Arm Holdings (NASDAQ:ARM) have surged since Wednesday, after the company forecast better-than-expected quarterly results, powered by demand for its technology to design chips for artificial intelligence features.

SoftBank (TYO:9984) Group Corp, which has a 90% stake in ARM Holdings, saw its shares rise 6.93% on Tuesday.

Chip-sector giant Tokyo Electron Ltd gained 11.24%, making it the second best performer.

Japanese equities also received a boost from Wall Street. Overnight, the Nasdaq briefly surpassed its record closing high from November 2021.

Among other top gainers, insurance firms MS&AD Insurance Group Holdings and Tokio Marine Holdings gained 11.42% and 10.25%, respectively. MS&AD Insurance was the best performer.

Otsuka Holdings was among the decliners, shedding 6.91% after the company said its experimental drug failed to meet a primary late-stage trial goal in treating agitation associated with dementia due to Alzheimer’s disease.

JGC Holdings Corp fell 17.72% to sit at the bottom of the pack, followed by Nippon Paper Industries Co Ltd, losing 14.58%, and Mazda Motor (OTC:MZDAY) Corp, down by 7.5%.

RELATED ARTICLES

Most Popular

Recent Comments