Japan's Nikkei cruises to 34-year peak, briefly breaching 38,000 range

MS&AD Insurance group

13/02/2024 06:56

(Updated at 0630 GMT)
    By Brigid Riley
       TOKYO, Feb 13 (Reuters) - Japan's Nikkei share average
closed at a fresh 34-year high on Tuesday as trading resumed
after a long holiday weekend, with tech-related shares and
strong corporate earnings supporting the benchmark stock index.
    The Nikkei  .N225  climbed 2.89% to 37,963.97 to its highest
since January 1990, after briefly breaching 38,000 points. 
    The broader Topix  .TOPX  rose 2.12%.  
    Chip-sector giant Tokyo Electron Ltd  8035.T  gained 13.33%,
making it the best performer of the day.
    SoftBank Group Corp  9984.T  rose 6.27%, buoyed by the rally
in semiconductor developer ARM Holdings  ARM.O  shares, in which
SoftBank has a 90% stake.
    Among other top gainers, Tokio Marine Holdings Inc  8766.T 
and MS&AD Insurance Group Holdings Inc  8725.T  gained 11% and
10.82%, respectively.
    Japanese equities also received a boost from a strong
performance on Wall Street and a weakened yen, boosting the
value of overseas revenue for exporters.
        The yen traded around 149.47 per dollar  JPY=  during
the session.
        "We have raised our outlook for Japanese equities in
2024 (from 2,500 to 2,650 for TOPIX, from 35,000 to 37,000 for
the Nikkei 225), taking into account changes in macroeconomic
conditions, including the yen weakening early in the year, and
progress on structural reforms," wrote J.P. Morgan analysts in a
note earlier this month. 
  
        Out of the index's 225 constituents, 196 gained, while
26 declined.
  
    As the Nikkei climbs toward its all-time high, the U.S.
consumer price index (CPI) report out later on Tuesday will be
in focus.
        "Nikkei moves have been more closely tied to the yen
recently, suggesting that any yen strength on the back of U.S.
CPI release today, or signs of verbal intervention, could
tactically disrupt the rally in Nikkei," said Charu Chanana,
head of currency strategy at Saxo Markets.
  
        Otsuka Holdings  4578.T  was among the decliners,
shedding 5.05% after the company said its experimental drug
failed to meet a primary late-stage trial goal in treating
agitation associated with dementia due to Alzheimer's disease.

 (Reporting by Brigid Riley; Editing by Subhranshu Sahu and
Sohini Goswami)
 ((brigid.riley@thomsonreuters.com;))