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Japan's Nikkei hits 40,000 level, ends at 6-month high tracking Wall Street rally
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Japan's Nikkei share average closed at a six-month high on Friday, as technology stocks tracked Wall Street's robust finish Nikkei jumped 1.43% to 40,150.79, its highest closing level since December 27. The index rose 4.6% for the week, its sharpest weekly gain since the week of September 23, broader Topix rose 1.28% to 2,840.54, gaining 2.5% for the week."Investors finally became willing to make long positions on U.S. stocks, underpinned by positive news around easing tensions in the Middle East and expectations for the interest rate cut," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management."Japanese equities mirrored the U.S. trend, led by stocks which are popular among foreign investors."Overnight, Wall Street finished higher, with the S&P 500 and the Nasdaq just shy of record closing highs as the Israel-Iran ceasefire continued to hold and a raft of economic indicators appeared to support the case for the Federal Reserve lowering borrowing costs this Japan, technology stocks rose, with chip-making equipment maker Tokyo Electron jumping 4.3% to boost the Nikkei the most. Tech start-up investor SoftBank Group rose 2.54%. Defence-related stocks Kawasaki Heavy Industries and Mitsubishi Heavy Industries rose 6.15% and 2.71%, respectively, on expectations of increased defence spending in the trend, chip-testing equipment maker Advantest lost 1.07%, weighing the most on the index, as investors booked profits from its more than 40% rise this month."Still, the rally on overall IT-related shares will continue. The market is just relocating their targets," Ikeda the more than 1,600 stocks trading on the Tokyo Stock Exchange 's prime market, 72% rose, 24% fell and 2% traded flat.
