Japanese Stocks Surge: Nikkei Jumps on US Rate-Hike Bets Easing Amid AI Chip Demand
Global Tech Rally Lifts Asian Equities
Japanese equities experienced a significant climb, tracking the record advance seen in U.S. markets. The market gain was primarily driven by easing concerns surrounding further interest rate increases by the Federal Reserve (Fed).The rise in Japanese stocks is supported by the strength observed in technology shares globally. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, noted that this trend suggests a positive outlook for equities.
Nikkei 225 Breaks Higher as Tech Stocks Lead Gains
The chip-heavy Nikkei 225 Stock Average rose by 1.5%, reaching 69,352.56 as of 9:23 a.m. in Tokyo. The broader Topix index also gained 0.9%, trading at 4,213.02.Out of the 1,637 stocks tracked by the Nikkei, 601 showed gains while 951 recorded declines, with 85 remaining unchanged. Advantest Corp. was highlighted as the key contributor to the gain in the Topix index.
U.S. Tech Stocks Set Records Amid Spending Surge
The bullish sentiment in Asian markets mirrors a strong performance on Wall Street. Earlier, the S&P 500 rose by 0.7% on Thursday, reaching a record level. The Nasdaq 100 climbed over 1%, achieving its highest point since late June.This robust movement in U.S. tech stocks was buoyed by increased spending from hyperscalers. These factors are anticipated to support the ongoing advance in Japanese equities.
Outlook for AI and Semiconductor Shares
Analyst Masahiro Ichikawa anticipates that the gains in Japanese equities will be led by semiconductor-related shares and those focused on AI technologies. These companies are expected to significantly drive up the Nikkei 225 Stock Average.The easing of concerns regarding U.S. inflation, coupled with robust demand in the technology sector, is expected to maintain supportive momentum for the market.
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