TOKYO: Japan’s Nikkei share average touched a record high on Tuesday, as technology stocks tracked Wall Street’s strong overnight finish ahead of the US Federal Reserve’s crucial policy meeting later this week.
The Nikkei rose to as high as 45,055.38, crossing the key 45,000 level for the first time. The index was up 0.30 per cent at 44,904.13 by the end of the morning session.
The market was closed on Monday for a public holiday.
The broader Topix rose 0.41 per cent to 3,173.57 on Tuesday.
The Nikkei ended four per cent higher last week, closing at a record peak for a third consecutive week.
The rally was supported by a robust corporate outlook, which prompted analysts to raise target prices of some local firms, and the expectations for a new prime minister following the decision of the current premier Shigeru Ishiba to resign, said Hikaru Yasuda, chief equity strategist at SMBC Nikko Securities.
The firm outlook of the global economy, underpinned by expectations of US interest rate cuts, also underpinned the Nikkei, he said.
The Nikkei may finish the year at about the 45,000 level, but the index could briefly retreat if expectations for the US rate cuts recede and Treasury yields rise, said Yasuda.
“The market expectations for the US rate cuts are fairly strong,” he said.
Shares of chipmaking equipment giant Tokyo Electron rose 2.17 per cent, providing the biggest boost to the Nikkei. Chip-testing equipment maker Advantest recovered from early losses to edge 0.04 per cent higher.
Wafer maker Sumco surged 9.80 per cent to be the biggest percentage gainer in the Nikkei. Chip-related Disco and Resonac Holdings jumped 6.90 per cent and 5.40 per cent, respectively.
Uniqlo-brand owner Fast Retailing fell 1.26 per cent to weigh on the Nikkei the most.
Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 68 per cent advanced, 27 per cent fell, and three per cent traded flat.
© New Straits Times Press (M) Bhd
