Rally In Semiconductor Stocks Power Broader Advance In Japan Indexes

Akira Ito
03 Dec, 2024
Tokyo

Stock market indexes in Tokyo advanced following gains in overnight trading on Wall Street. 

The Nikkei 225 stock average jumped 1.9%, and the broader Topix gained 1.4%, driven by a jump in semiconductor-related stocks. 

The rise in market indexes was fueled by the exemption granted to Japanese equipment makers in the latest trade restrictions announced by the Biden administration. 

The additional U.S. sanctions cover 24 types of semiconductor equipment and three types of design and testing software and expanded its restriction list to 140 companies covering the supply chain network. 

However, these restrictions on state-of-the-art technology that enable the manufacturing of artificial intelligence chips and technology excluded most Japanese products and equipment. 

The surprise rally in semiconductor stocks spread to the broader market and lifted benchmark indexes for the third day in a row. 

The Japanese yen traded at 150.88 against the U.S. dollar as investors reaffirmed bets that the Bank of Japan is more likely to raise rates at the end of its policy meeting in two weeks. 

 

Japan Stock Movers 

The Nikkei 225 stock average increased 1.9% to 39,248.86, and the broader Topix index advanced 1.4% to 2,753.58. 

Tokyo Electron increased 4.3% to ¥24,650.0, Advantest gained 3.9% to ¥8,750.0, and Lasetec jumped 4.3% to ¥17,005.0. 

Shipping companies were among the leading gainers in Tokyo. 

Mitsui O.S.K. gained 5.2% to ¥5,286.0, Kawasaki Kisen Kaisha added 4.5% to ¥2,109.50, and Nippon Yusen increased 3.8% to ¥5,020.0. 

Nippon Yusen said it completed the acquisition of 4.39 million shares for about ¥21.6 billion in November as part of its 35 million stock repurchase plan approved by the company's board.