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Japan's Nikkei breaches 40,000-point level for first time as tech stocks soar

As technology shares jumped, tracking their US counterparts, the Nikkei share average rose 0.79 per cent to 40,226.83 by the midday close, smashing through an intraday high of 39,990.23 hit on Friday.
Last Updated 04 March 2024, 04:43 IST

Tokyo: Japan's main stock benchmark breached the 40,000-point level for the first time on Monday, continuing a rapid rise to new peaks this year that has been spurred by corporate governance reform and cheap valuations.

As technology shares jumped, tracking their US counterparts, the Nikkei share average rose 0.79 per cent to 40,226.83 by the midday close, smashing through an intraday high of 39,990.23 hit on Friday.

Overseas investors appear to be leading the buying and many seem to be investing from a medium- to long-term perspective, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

"I think the market will continue to rise," he said.

Japanese tech shares were boosted by the ongoing artificial intelligence rally in US stocks that saw the SP 500 and Nasdaq to record highs on Friday.

Chip-testing equipment maker Advantest, which counts US artificial intelligence firm Nvidia among its customers, was up 3.9 per cent. Chip-making equipment giant Tokyo Electron gained 2.7 per cent.

The shares in those two companies added a combined 175 index points to the Nikkei's 316-point rise during the morning session.

Shin-Etsu Chemical, which manufactures semiconductor silicon products, rose 2.2 per cen.

JSR Corp, a major maker of photoresists used in chipmaking, jumped 4.4 per cent after a media report that state-backed fund Japan Investment Corp (JIC) plans to launch a tender offer for the shares this month.

The broader Topix was up 0.16 per cent at 2,713.79.

Among the Tokyo Stock Exchange's 33 industry sectors, the electric machinery was the third-largest gainer, up 1.2 per cent, after pulp and paper firms which climbed 2.1 per cent and miners which rose 1.3 per cent.

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(Published 04 March 2024, 04:43 IST)

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