 |
| Nikkei |
Japan’s Nikkei share average rose on Tuesday, recovering from a near eight-month low in the previous session as overnight gains in Wall Street boosted investor sentiment.
Nikkei and Topix Performance
As of 0146 GMT, the Nikkei index was up 0.7% at 35,875.79, trimming some of its earlier gains of over 1%. The broader Topix index also climbed 0.94% to 2,683.53. Monday’s sharp decline was driven by investor concerns over potential U.S. trade tariffs.
Yen Strength and Chip Sector Concerns
“The Nikkei pared its gains as the yen’s strength weighed on exporters,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. The yen was up 0.13% against the dollar at 149.75, reducing the value of overseas profits when repatriated by Japanese exporters.
Concerns over global demand for data centers limited gains in the Nikkei, particularly affecting chip-related stocks. Advantest, a major chip-testing equipment maker, fell 1.85%, while cable manufacturer Fujikura lost 1.37%.
Key Stock Movements and Economic Outlook
Fast Retailing, the owner of Uniqlo, rose 1.25%, providing the biggest boost to the Nikkei, while SoftBank Group gained 0.6%.
Japan’s closely watched “tankan” survey from the Bank of Japan showed a headline index of +12 for big manufacturers’ business confidence in March, aligning with market expectations. Analysts suggest that the data could have strengthened the yen by keeping the possibility of early BOJ interest rate hikes open.
The 10-year government bond yield rose 2 basis points to 1.505%. Of the 225 Nikkei components, 180 stocks were trading in positive territory.
Tags
ISSUE
