Tokyo Shares Jump On Tech Rally, Easy Money Stance

Tokyo stocks surged Thursday, driven by gains in tech shares, while a fresh central bank comment about maintaining an easy monetary environment encouraged buyers

Tokyo, (UrduPoint / Pakistan Point News - 8th Feb, 2024) Tokyo stocks surged Thursday, driven by gains in tech shares, while a fresh central bank comment about maintaining an easy monetary environment encouraged buyers.

The benchmark Nikkei 225 index jumped 2.06 percent or 743.36 points to close at 36,863.28, while the broader Topix index added 0.50 percent, or 12.68 points, to end at 2,562.63.

Among the notable winners was SoftBank Group, which shot up 11.06 percent to 7,350 yen after its chip subsidiary Arm issued a robust earnings report, beating expectations.

Arm's announcement also spurred the buying of large-cap tech shares, IwaiCosmo Securities said.

Investors in Tokyo cheered a comment from the Bank of Japan's deputy governor Shinichi Uchida, who said the bank would maintain its easy-money stance even if it decides to end its negative interest rate policy.

"Headlines about deputy governor Uchida's comment pushed down the interest rate, which then weighed on the yen, which then encouraged buyers," IwaiCosmo Securities added.

The dollar fetched 148.68 yen, compared with 148.16 yen in New York.

Nippon Steel trimmed early gains and ended up 0.90 percent at 3,597 yen after it revised up its full-year net profit forecast.

Nintendo added 3.00 percent to 8,620 yen while shipbuilder Hitachi Zosen jumped 6.06 percent to 1,068 yen.

Nissan added 1.84 percent to 625 yen ahead of earnings reports due after the market closes. Toyota added 2.76 percent to 3,350.