Japan's Nikkei reclaims 39,000 level for first time since April

Shin-Etsu Chemical

20/05/2024 04:38

By Brigid Riley
       TOKYO, May 20 (Reuters) - Japan's Nikkei share average
rose more than 1% on Monday, hitting 39,000 points for the first
time in a month as a record closing high on Wall Street
continued to fuel positive investor sentiment. 
    The Nikkei  .N225  was 1.44% higher at 39,346.92 by the
midday break, climbing to the psychologically significant
39,000-point range for the first time since April 15. 
    The broader Topix  .TOPX  was up 1.21% at 2778.89.
    Higher prospects of U.S. rate cuts this year after a milder
inflation report last week buoyed global market sentiment and
led several indexes on Wall Street to lock in weekly gains. That
in turn has provided Japanese equities with a tailwind.
    "Stock prices have been supported as rate cut expectations
are being revived," said Masahiro Ichikawa, chief market
strategist at Sumitomo Mitsui DS Asset Management.
    The Nikkei fell nearly 5% last month in its largest monthly
drop since December 2022, following the benchmark index's rise
to an all-time high of 41,087.75 earlier this year.
    On the back of those expectations, the Dow Jones Industrial
Average  .DJI  finished above the 40,000 mark for the first time
on Friday, which may be giving the Nikkei support on Monday,
Ichikawa said.  .N 
    Buying was widespread, with 204 of the index's 225
constituents advancing, with high-tech shares and index
heavyweights helping the Nikkei to 559.54-point gains.
    Uniqlo parent firm Fast Retailing  9983.T  was up 1.9%,
adding about 77 points alone.
    Among chip-related shares, Shin-Etsu Chemical Co  4063.T ,
which manufactures chip silicon products among other things,
jumped 5.24%, and chip-making equipment giant Tokyo Electron
 8035.T  gained 1.2%.
    Advantest  6857.T , which counts Nvidia  NVDA.O  among its
customers, was up 0.8% as investors looked ahead of U.S. firm's
earnings results this week, which could provide fresh momentum
for the artificial intelligence-centred stock rally.

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