Strength In Tech Stocks and Weakness In Yen Pushes Japan Indexes to New Record Highs

Akira Ito
09 Jul, 2024
Tokyo

Japan's benchmark indexes soared to new record highs, pushed by tech stocks and persistent weakness in the yen. 

The Nikkei 225 gained 2% and the Topix index jumped 1% following the enthusiasm about artificial intelligence and related technologies. 

Market sentiment was also bolstered after the S&P 500 and the Nasdaq Composite closed at new record highs in overnight trading in New York. 

Investors also digested the current account surplus and the persistent weakness in real wages in May, released on Monday. 

The Bank of Japan said M2 money supply increased 1.5% to 1.257 trillion yen in June from a year earlier, and M3 money supply rose 1.0% to 1.63 trillion yen, slower than 1.3% in the previous month. 

Investors are looking forward to the release of machinery orders later in the week amid high expectations of a rebound in new orders. 

The yen traded around 160.65 against the U.S. dollar, and the yield on 10-year Japanese government bonds was near 1.09%. 

Investors are hoping that the Bank of Japan will provide clarity about the future interest rate path and the central bank's government bond purchase plan at the end of the two-day next policy meeting on July 31. 

 

Japan Stock Movers 

The Nikkei 225 stock average jumped 2% to 41,580.17, and the Topix index gained 1% to 2,895.55. 

Tech stocks were among the leading gainers in Tokyo's trading on Tuesday. 

Tokyo Electron, Advantest, Disco Corp., and Screen Holdings jumped between 2% and 4%. 

Hitachi Ltd. jumped 5.4% to ¥3,834.0 after the conglomerate announced its plans to integrate artificial intelligence-based industrial solutions. 

Leading exporters traded mixed amid weakness in the yen. 

Canon advanced 1.8% to ¥4,511.0, and Sony Group jumped 5.2% to ¥14,605.0. 

However, Panasonic declined 0.2% to ¥1,319.0, and Mitsubishi Electric edged up a fraction to ¥2,740.50. 

Fujikura Holdings soared 11.3% to ¥3,439.0, and Furukawa Electric gained 4.4% to ¥4,081.0.