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Business Recorder
3 days ago
- Business
- Business Recorder
Japan's Nikkei rallies to record high, SoftBank surges
TOKYO: Japan's Nikkei share gauge powered to an all-time high on Tuesday, driven by sharp gains for tech companies and renewed optimism over trade with the United States. With financial markets reopening after a holiday in Japan on Monday, the stock benchmark caught up with peaks scaled earlier this year by other major global centres. The Nikkei 225 surged 2.46% to 42,849.67 as of the morning close, exceeding the previous high of 42,426.77 set on July 11, 2024. In a roller-coaster ride in 2024, the Nikkei had exceeded a record that had stood since 1989 during Japan's bubble economy. Japan's broader Topix gauge has been setting successive record highs since July 24 and also scored a new all-time high on Tuesday, rising 1.45% to 3,067.96. The U.S. Standard & Poor's 500 and MSCI's broadest gauge of global equities have been charting new peaks since June. 'The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged the index,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. 'The Nikkei could soon peak as technology shares that led the Wall Street's rally have slowed down.' SoftBank Group soared 6.9% after Reuters reported the conglomerate was selecting banks for a U.S. listing of its payments app operator PayPay. Semiconductor industry heavyweights Advantest and Lasertec jumped 7.1% and 6.9%, respectively. Global stock markets tumbled after U.S. President Donald Trump's April 2 'Liberation Day' announcement of sweeping tariffs on imports from dozens of countries into the U.S. Shares have since more than recouped those losses as trade concerns abated and enthusiasm over artificial intelligence companies soared. Uncertainty over tariff levels imposed by the U.S. has weighed on shares in Japan, where exports are a key driver for the economy. The U.S. on Thursday promised to amend a presidential executive order to remove overlapping tariffs on Japanese goods. 'The impact of U.S. tariffs seems not as serious as the market had expected,' said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities. 'There will be more companies which will revise up their outlooks due to the limited impact of the U.S. tariffs. The yen remains weak, which is also positive for Japanese companies.' Foreign money has been flooding into the Japanese market of late, but data from the Tokyo Stock Exchange last week indicated those flows may have peaked. Overseas investors turned net sellers of Japanese stocks and futures for the first time in 16 weeks in the period ending Aug. 1. They sold a net 342 billion yen ($2.31 billion) of shares and futures, a sharp reversal from net purchases of 1.26 trillion yen in the previous week.
Business Recorder
22-07-2025
- Business
- Business Recorder
Japan's Nikkei rises as investors digest election results
TOKYO: Japan's Nikkei share average climbed on Tuesday, as investors returning from an extended holiday weekend reacted positively to the outcome of the upper house election, which aligned with market expectations. As of 0023 GMT, the Nikkei was up 1.1% at 40,241.61. The broader Topix rose 0.78% to 2,856.49. Japan's ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power even as he vowed to remain party leader. The election was closely monitored as Ishiba's party also lost control of the more powerful lower house in elections last year and his Liberal Democratic Party was facing calls from opposition parties pledging to cut taxes. 'Investors bought stocks as the election outcome was in line with their expectations,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. 'And they thought the election outcome would not have much impact on Japan's policy framework immediately, as Ishiba said he has no plans to expand his coalition.' Shares of technology investor SoftBank Group jumped 4%, making them the largest contributor to the Nikkei's gains. Chip-related Advantest and Tokyo Electron rose 2.24% and 0.95%, respectively. Heavy machinery maker Mitsubishi Heavy Industries jumped 5.4% to become the top percentage gainer in the Nikkei. Medical equipment maker Olympus fell 2%, becoming the biggest drag in the Nikkei.
Yomiuri Shimbun
22-07-2025
- Business
- Yomiuri Shimbun
Japan's Nikkei Stock Average Rises as Investors Digest Election Results
TOKYO, July 22 (Reuters) – Japan's Nikkei share average climbed on Tuesday, as investors returning from an extended holiday weekend reacted positively to the outcome of the upper house election, which aligned with market expectations. As of 0023 GMT, the Nikkei was up 1.1% at 40,241.61. The broader Topix rose 0.78% to 2,856.49. Japan's ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power even as he vowed to remain party leader. The election was closely monitored as Ishiba's party also lost control of the more powerful lower house in elections last year and his Liberal Democratic Party was facing calls from opposition parties pledging to cut taxes. 'Investors bought stocks as the election outcome was in line with their expectations,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. 'And they thought the election outcome would not have much impact on Japan's policy framework immediately, as Ishiba said he has no plans to expand his coalition.' Shares of technology investor SoftBank Group jumped 4%, making them the largest contributor to the Nikkei's gains. Chip-related Advantest and Tokyo Electron rose 2.24% and 0.95%, respectively. Heavy machinery maker Mitsubishi Heavy Industries jumped 5.4% to become the top percentage gainer in the Nikkei. Medical equipment maker Olympus fell 2%, becoming the biggest drag in the Nikkei.
Business Recorder
16-07-2025
- Business
- Business Recorder
Nikkei edges higher amid tech rally
TOKYO: Japan's Nikkei share average nudged higher on Tuesday, as gains in technology stocks were partially tempered by caution ahead of local election results and US inflation data. The Nikkei was up 0.12% at 39,507.28 by the midday break. The index rose as much as 0.46% earlier in the session, buoyed by gains in Nasdaq futures during Asia trade. The US stock futures index advanced after AI chip giant Nvidia said it will resume sales of its H20 graphics processing unit (GPU) chips to China. The broader Topix edged 0.05% higher to 2,824.15. 'The Nasdaq's gains were a positive cue for the Nikkei, but the gains of the Nikkei were limited as the market awaited US price data and the outcome of the national election,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. Global investors also await US consumer price data for June, due later in the day, and will monitor for any upward pressure on prices from tariffs. In Japan, markets are wary of a potential defeat for the Liberal Democratic Party and its coalition partner Komeito in the upcoming upper house election on July 20.
Business Recorder
15-07-2025
- Business
- Business Recorder
Japan's Nikkei edges higher amid tech rally, pre-data caution
TOKYO: Japan's Nikkei share average nudged higher on Tuesday, as gains in technology stocks were partially tempered by caution ahead of local election results and U.S. inflation data. The Nikkei was up 0.12% at 39,507.28 by the midday break. The index rose as much as 0.46% earlier in the session, buoyed by gains in Nasdaq futures during Asia trade. The U.S. stock futures index advanced after AI chip giant Nvidia said it will resume sales of its H20 graphics processing unit (GPU) chips to China. The broader Topix edged 0.05% higher to 2,824.15. 'The Nasdaq's gains were a positive cue for the Nikkei, but the gains of the Nikkei were limited as the market awaited U.S. price data and the outcome of the national election,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. Nikkei falls for 3rd day as trade impasse Global investors also await U.S. consumer price data for June, due later in the day, and will monitor for any upward pressure on prices from tariffs. In Japan, markets are wary of a potential defeat for the Liberal Democratic Party and its coalition partner Komeito in the upcoming upper house election on July 20. A potential defeat could empower opposition parties that have pledged in their campaign platforms to cut or abolish the sales tax. Shares of chip-making equipment maker Tokyo Electron rose 1.72% to become the biggest source for the Nikkei's gains. Cable makers, which are the gauge for the data centre investments, jumped, with Furukawa Electric and Fujikura gaining 4.95% and 3.4%, respectively, to become the top percentage gainers in the Nikkei. Ryohin Keikaku, operator of the Muji retail brand, fell 4%, becoming the biggest drag on the Nikkei.
