Photo = Yonhap news

 

 

[Alpha Biz= Paul Lee] On Tuesday, the Nikkei index in the Tokyo stock market closed at 33,012.58, up by 1,876 points (6.03%) compared to the previous trading day. At one point in the morning, the index reached 33,257, showing strong bullish momentum. This closing increase is the fourth-largest in history, according to reports from the Nihon Keizai Shimbun and Kyodo News.


Stocks in major sectors such as semiconductors, automobiles, and banking saw broad-based gains. The limited decline in the U.S. stock market on the 7th, coupled with a slight retreat in the yen's strength in the foreign exchange market, was believed to have improved investor sentiment. Additionally, Japanese Prime Minister Shigeru Ishiba's phone call with U.S. President Donald Trump regarding tariff negotiations also positively impacted investor confidence.


The Nikkei analyzed that the market's sharp drop the previous day, marking its lowest point in a year and five months, created a favorable environment for technical rebounds, which prompted buying.


Notably, semiconductor-related stocks showed prominent gains. Following the upward trend in U.S. technology stocks, semiconductor stocks in Japan attracted significant buying interest, with Advantest rising by 11.8% and Tokyo Electron gaining 8.7%. Nippon Steel surged as much as 11% during the day, before closing up 6%. This was due to President Trump's order to reconsider the decision to block the acquisition of U.S. steel giant U.S. Steel by Nippon Steel.


Ikuo Mitsui, a fund manager at Aizawa Securities, commented, "There is a high likelihood that Nippon Steel will get closer to the desired outcome."


Bank stocks, which had recently plunged, also surged on the back of rising long-term interest rates. Mitsubishi UFJ Financial Group and Mitsui Sumitomo Financial Group each rose by 11%, and Mizuho Financial Group jumped by 14%.


On the 7th, the Nikkei average fell by 2,644 points (7.83%) compared to the previous week, marking the third-largest decline in history. This was a drop of 6,890 points from the high point reached on the 26th of the previous month.

 

 

 

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