Tokyo stocks rose significantly on Wednesday, driven by gains in the leading US technology index, the Nasdaq, as NVIDIA shares closed nearly 7% higher.
This rise was reflected in sentiment in the Japanese semiconductor sector, according to Bloomberg.
The Nikkei 225 index rose by 1.26%, or 493.92 points, to close at 39,667.07 points, while the broader Topix index rose by 0.56%, or 15.58 points, to close at 2,802.95 points, according to a Reuters report.
Daiwa Securities told Bloomberg that “NVIDIA’s recovery, a symbol of AI innovation, has improved sentiment for the entire high-tech sector.”
The positive performance of Nvidia’s stock affected the shares of Japanese semiconductor companies, as Advantest chip manufacturing company’s stock jumped by 7.02% to 6,222 yen (about $39), while Tokyo Electron’s stock rose by 3.63% to 35,650 yen (about $222). .
Other major stocks in Tokyo also saw additional gains.
Technology investor SoftBank Group Corp. added 1.58% to 10,095 yen (about $63) as its leader Masayoshi Son is set to announce new medical businesses that will leverage artificial intelligence technology.
Chugai Pharmaceutical Company shares rose 3.10% to 5,812 yen ($36), Astellas Pharma shares rose 0.35% to 1,584 yen ($10), and Mitsubishi Financial Group shares rose 0.64% to 1,652 yen ($10.5). dollars).
The yen is at its lowest level in 38 years
Amid positive movement in the Tokyo stock market, the yen fell to its lowest levels against the dollar since December 1986, reflecting the large gap in interest rates between Japan and the United States, Reuters reported.
The dollar touched 160.63 yen, its highest level in nearly four decades, rising 0.5% to 160.455 yen in the latest trading.
Continued low interest rates in Japan – compared to high interest rates in the United States – continue to pressure the yen, according to Bloomberg.
On Wednesday, the yield on 10-year Japanese bonds reached 1.03%, while the yield on 10-year US Treasury bonds reached 4.304%. The dollar index, which measures the US currency against 6 other currencies, rose by about 0.2% to 105.92 points.
Market participants are closely monitoring upcoming data releases, including the US Personal Consumption Expenditures Index, which is the Federal Reserve’s preferred measure of inflation.
