Nikkei ends at three-decade high on tech, brokerage shares boost

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Nikkei ends at three-decade high on tech, brokerage shares boost


TOKYO: Japan’s benchmark Nikkei stock average closed at its highest level in three decades on Thursday, helped by a rally in tech shares and better-than-expected core machinery orders.

The Nikkei index ended 0.85 per cent higher at 28,698.26, while the broader Topix rose for a sixth straight session to end 0.48 per cent higher at 1,873.28.

The mood for equities also brightened ahead of an expected announcement later in the day about U.S. economic stimulus under incoming President Joe Biden.

“The upward market trend is prompting investors to buy more stocks. Investors are buying stocks out of this ‘fear of missing out’ sentiment,” said Takashi Hiroki, chief strategist, Monex Securities.

Chip-related stocks led the gains, tracking a 7 per cent jump in Intel after the company said it would replace its chief executive officer and expects to beat its financial forecast for the fourth quarter.

Other tech-related shares also rose after data showed Japan’s core machinery orders unexpectedly rose for a second straight month in November.

Nikon Corp jumped 7.21 per cent to be the largest gainer on the Nikkei 225 index, followed by Yaskawa Electric, rising 5.3 per cent.

Murata Manufacturing Co gained 0.84 per cent, Fanuc Corp climbed 2.22 per cent, while SoftBank Group rose 2.93 per cent.

Shares of brokerages also advanced, with online broker Monex Group surging 10.78 per cent, while Nomura Holdings added 1.41 per cent and Daiwa Securities Group jumped 2.29 per cent.

Honda Motor fell 0.07 per cent after the company said it would halt output at its British factory next week due to Covid-19 related global supply chain issues.

Toyota Motor gained 0.22 per cent.

The top percentage losers in the Nikkei 225 was GS Yuasa Corp, down 5.02 per cent, followed by JFE Holdings Inc , Kawasaki Kisen Kaisha Ltd both losing 4.7 per cent each.





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