Aug 13, 2024 08:00 AM IST
Technology firms including Tokyo Electron Ltd. rose after Nvidia Corp. boosted the Philadelphia Stock Exchange Semiconductor Index.
Japan’s Nikkei 225 Stock Average recovered back to levels seen before the blue-chip gauge tumbled more than 12% on Aug. 5.
The Nikkei 225 advanced 2.7% to 35,961.95 as of 10:00 a.m. in Tokyo, rising after a long weekend as a weaker yen provided support for exporters such as automakers and tech firms. The yen was little changed at 147.29 per dollar after weakening 0.4% on Monday.
Technology firms including Tokyo Electron Ltd. rose after Nvidia Corp. boosted the Philadelphia Stock Exchange Semiconductor Index.
“The huge selloff peaked last week and investor attention is shifting to fundamentals like corporate profitability,” said Ikuo Mitsui, a fund manager at Aizawa Securities. “Investors are buying stocks amid cheaper valuations.”
Both the Nikkei 225 and the Topix have fallen about 9% since the end of July, when the Bank of Japan raised its benchmark interest rate and unveiled plans to reduce its bond purchases. The benchmarks are now down around 13% from their records reached last month, after sliding into a bear market on Aug. 5 when losses exceeded 20%.
“Today’s Japanese stocks are likely to be calm for the first time in a while,” said Ryuta Otsuka, a strategist at Toyo Securities Co. “Stability in the yen will also help stabilize Japanese stocks.”