Tokyo stocks close sharply higher, up 1,392 points on semiconductor-led buying

Tokyo stocks rose sharply on Tuesday, driven by major semiconductor-related shares that lifted the Nikkei average. Although gains were briefly erased after opening higher in the morning, buying resumed later to end the session up nearly 1,400 points.

The Nikkei Stock Average closed at 65,416.63 yen, up 1,392.03 yen from Monday, marking a sharp rebound. Estimated trading volume on the Prime Market stood at 2.50 billion shares, with an estimated trading value of 10.93 trillion yen. Advancers outnumbered decliners 842 to 670, with 52 issues unchanged.

In Tuesday's Tokyo market, investor sentiment improved as semiconductor shares were bought back in the U.S. market Monday, sparking a broad rebound in those names and related AI data center issues. However, while futures-led buying dominated the morning, momentum waned later, trimming gains and briefly pushing the index into negative territory. Subsequently, speculation spread that negotiations over the Iranian situation were progressing toward a cessation of hostilities, triggering short-covering and driving prices higher again. Although reports indicated a high likelihood of an interest rate hike at the Bank of Japan's (BOJ) monetary policy meeting this month, news of a potential suspension of tapering government bond purchases also emerged, causing long-term yields to decline and easing relative stock overvaluations, adding upward momentum to the headline index. However, advancing issues accounted for only 54.00% of the total, with a considerable number of declining issues as well. Trading value swelled in the afternoon session, reaching nearly 11.00 trillion yen.

Among individual names, Kioxia Holdings <285A>, which continued to generate heavy turnover, was heavily bought back, while Murata Manufacturing Co.,Ltd. <6981> rose sharply, and TAIYO YUDEN CO., LTD. <6976> hit its daily limit up. Tokyo Electron Limited <8035> moved significantly higher, and ADVANTEST CORPORATION <6857>, DISCO CORPORATION <6146>, and Lasertec corporation <6920> also gained. Renesas Electronics Corporation <6723> surged. DAISHINKU CORP. <6962> and NIHON DEMPA KOGYO CO., LTD. <6779> jumped sharply, while YOKOWO CO.,LTD. <6800> advanced substantially. Panasonic Holdings Corporation <6752>, IBIDEN CO.,LTD. <4062>, and ROHM COMPANY LIMITED <6963> also posted sharp gains.

On the other hand, Mitsui Kinzoku Company, Limited <5706> faced selling pressure, while Mitsubishi Heavy Industries,Ltd. <7011> and Hitachi, Ltd. <6501> lacked strength. NITTO BOSEKI CO.,LTD. <3110> searched for lower levels. Fixstars Corporation <3687> plunged for a second straight session to top the percentage losers, TerraSky Co.,Ltd <3915> was heavily sold, and W-SCOPE Corporation <6619> and MUSASHI SEIMITSU INDUSTRY CO.,LTD. <7220> fell sharply. RENOVA,Inc. <9519> and ASTERIA Corporation <3853> declined, with losses in Sakai Chemical Industry Co.,Ltd. <4078> and TESS Holdings CO.,Ltd. <5074> also notable.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.