Japan's Nikkei share average surged on Tuesday, climbing to a three-month high above the 40,000 mark, fueled by strong performance on Wall Street and a weaker yen. By the midday break, the Nikkei had gained 1.6% to reach 40,232.45, marking the first time it surpassed the 40,000 level since July. The broader Topix index also saw a rise, gaining 1.14% to hit 2,737.
Wall Street’s positive close on Monday, particularly in the semiconductor sector, gave Japanese markets a boost. Nvidia’s stock hit a record high, leading to gains for Japanese chip-related stocks. Tokyo Electron surged 5.07%, and Advantest followed with a 3.53% rise, both helping to lift the Nikkei.
SoftBank Group, an AI-focused startup investor, soared by 6.85%, riding the wave of its subsidiary Arm Holdings' strong overnight performance. Together, these tech-driven gains significantly bolstered the overall Nikkei index.
A weaker yen added to the positive momentum. The yen hovered near its lowest levels since early August, benefiting export-heavy companies. Automaker Toyota Motor edged up by 0.39%, while Sony Group saw a 0.64% rise, reflecting the favorable currency conditions.
Lasertec Corp emerged as the top percentage gainer in the Nikkei, climbing by 7.38%, further signaling optimism in Japan’s stock market as earnings season unfolds with positive results from major companies.
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