Japan's Nikkei rises above 38,000 points as tech shares soar
24/04/2024 04:30
By Brigid Riley
TOKYO, April 24 (Reuters) - Japan's Nikkei share average
was on track for a third-consecutive day of gains on Wednesday,
tracking Wall Street, to break above 38,000 points as investors
continued to snap up tech-related shares.
The Nikkei .N225 was up 2.07% at 38,329.39 by the midday
break, recovering to the 38,000-point range for the first time
in four days.
The broader Topix .TOPX was up 1.37% at 2702.68.
Japanese shares have had a bumpy month since the benchmark
index rose to a record high of 41,087.75 at the end of March and
then sank to as low as 36,733.06 last week on factors such as
geopolitical concerns and profit-taking.
However, sentiment has turned favourable on risk assets
again as fears of a re-escalation in the Middle East eased and
U.S. stocks closed higher overnight following positive earnings
from top-tier companies, giving the Nikkei a boost. .N
"Japanese stocks are currently enjoying the bid from Wall
Street as well as the weak yen," said Charu Chanana, head of
currency strategy and global market strategist at Saxo.
The dollar traded at 154.8 yen JPY= after hitting a
34-year high of 154.88 this week and sparking more verbal
warnings from Japanese authorities. FRX/
A weaker yen tends to boost Japanese export shares, as it
raises the value of overseas profits in yen terms when firms
repatriate them to Japan.
Automakers like Toyota Motor 7203.T and other
export-related stocks performed strongly on Wednesday. Toyota
Motor gained 2.6%.
Chip-related shares saw some of the largest gains in the
morning session, with Tokyo Electron 8035.T up 6.4%, Renesas
Electronics 6723.T up 9.5% and Disco 6146.T up 5.8%.
Risks lie ahead though, as the earnings season heats up in
the United States, Chanana said.
"While the latter has room to hold despite risks of an
intervention, the bid in US equities is highly vulnerable to the
big tech companies reporting earnings this week."
(Reporting by Brigid Riley; Editing by Janane Venkatraman
)
((brigid.riley@thomsonreuters.com;))