Japan's Nikkei hits three-week closing high in widespread rally

Lasertec

03/12/2024 07:13

(Updates with market close)
    By Brigid Riley
       TOKYO, Dec 3 (Reuters) - Japan's Nikkei share average
hit a three-week closing high on Tuesday as heavyweight chip
stocks led a broad rally on the back of Wall Street's strong
overnight finish.
    The Nikkei  .N225  closed up 1.9% at 39,248.86 after
rallying more than 2% during trade.
    The broader Topix  .TOPX  finished 1.4% higher at 2,753.58.
    The Nasdaq  .IXIC  and the S&P 500  .SPX  indexes scored
record closing highs on Monday, boosted by tech-related shares
following the market's strong November gains.  .N 
    Japan's major tech shares followed suit, with chip-making
equipment giant Tokyo Electron  8035.T  up 4.3% to contribute 98
points to the Nikkei's near 736-point gain.
    AI-focused startup investor SoftBank Group  9984.T  jumped
2.7% and chip-testing equipment maker Advantest  6857.T  added
3.9%.
    Fellow chip-related firm Disco Corp  6146.T  and peer
Lasertec  6920.T  surged 6.1% and 4.3%, respectively, to land
among some of the Nikkei's best performers by percentage.
    Gains went beyond chip shares, with 197 of the Nikkei's 225
constituents advancing as investors snapped up stocks, while 25
declined. Three were untraded.
    "Last week, Japan's stock market saw caution around news
related to tariff increases under the incoming Trump
administration," said Maki Sawada, a strategist at Nomura
Securities.
    Losses were concentrated among economically sensitive
sectors, Sawada said, adding that investors appeared to be
buying back those shares this week.
    Shipping  .ISHIP.T  and electric machinery  .IELEC.T ,
considered to be cyclical sectors, were among top performers on
the Tokyo Stock Exchange's 33 industry sectors.
    Shipper Kawasaki Kisen Kaisha  9107.T  advanced 4.9%.
    Among other major shares, Uniqlo-owner Fast Retailing
 9983.T  offered the biggest single lift to the Nikkei with a
2.5% rise.
    Electronic components maker TDK  6762.T  gained 1.9% and
semiconductor silicon wafer maker Shin-Etsu Chemical  4063.T 
added 1.2%.
    Automakers Toyota  7203.T  and Honda  7267.T  gained 1.6%
and 1.4%, respectively.

 (Reporting by Brigid Riley; Editing by Sherry Jacob-Phillips
and Sumana Nandy)
 ((brigid.riley@thomsonreuters.com;))