Nikkei 225 Gains As Much As 3% On Strong Tech Earnings, Weak Yen

The Nikkei 225 climbed 2.9% to 37,963.97 at the 3 p.m. close in Tokyo, putting it about 2.5% away from a record.

13 Feb 2024, 02:44 PM IST

An electronic stock board displayed inside the Kabuto One building in Tokyo, Japan. (Photographer: Akio Kon/Bloomberg)

(Bloomberg) -- Japan’s Nikkei 225 Stock Average briefly rose 3%, its biggest advance since November 2022, as tech shares led gains after Tokyo Electron Ltd. boosted its full-year revenue and profit guidance.

The Nikkei 225 climbed 2.9% to 37,963.97 at the 3 p.m. close in Tokyo, putting it about 2.5% away from a record. The Topix rose 2.1% to 2,612.03. Out of 2,152 stocks in the Topix, 1,596 rose and 492 fell, while 64 were unchanged.

Tokyo Electron contributed the most to the Topix’s gain, increasing 13% to reach a record high after the chipmaking equipment manufacturer projected that operating income for the fiscal year to March will now be ¥445 billion. SoftBank Group Corp. extended gains on an explosive rally of its Arm Holdings Plc.

Nikkei 225 Gains As Much As 3% On Strong Tech Earnings, Weak Yen

“If the Nikkei reaches an all-time high in the near term, that would be earlier than I thought,” said Masahiro Yamaguchi, a senior market analyst at SMBC Trust Bank Ltd. “While there’s a sense of caution over current levels, the rally in semiconductor-related stocks on the back of improved earnings and the AI narrative doesn’t feel out of place.”

Exporters were supported after the yen weakened 0.1% to to the dollar after touching the lowest since late November.

Sector-wise, insurers such as MS&AD Insurance Group Holdings Inc. helped lift the Nikkei 225 after a report said the Financial Services Agency asked property-and-casualty insurers to accelerate their disposal of cross-shareholdings.

ADVANCERS

Raiznext Corp (6379) +25%
Tokyo Keiki (7721) +21%
Kawada Tech (3443) +20%; *KAWADA TECHNOLOGIES TO CONDUCT 3-FOR-1 STOCK SPLIT ON APRIL 1

DECLINERS

Poplar (7601) -20%
World Holdings (2429) -19%; World Holdings Drops Most in 13 Years; Trading Volume Surges
DmMix (7354) -18%

INSIGHTS

31 of the 33 sector indexes on the Tokyo Stock Exchange advanced; Tokyo Stock Exchange TOPIX Insurance Index was the best performer, while Tokyo Stock Exchange TOPIX Pulp And Paper Index fell the most
The MSCI AC Asia Pacific Index was up 0.9%
Topix Index is up 10% year-to-date, vs. MSCI AC Asia Pacific Index down 0.4%
Topix Index members are trading at 15.3 times their estimated earnings for the next 12 months

Nikkei 225 Gains As Much As 3% On Strong Tech Earnings, Weak Yen

The Nikkei 225 climbed 2.9% to 37,963.97 at the 3 p.m. close in Tokyo, putting it about 2.5% away from a record.

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