Tokyo Stocks Surge After US Rallies

Tokyo, (APP - UrduPoint / Pakistan Point News - 16th Feb, 2024) Tokyo shares surged in morning trade on Friday, supported by US rallies as investors shrugged off weak retail sales data.

The benchmark Nikkei 225 index was up 1.66 percent, or 634.17 points, at 38,792.11, while the broader Topix index added 1.32 percent, or 34.28 points, to 2,626.13.

Overnight on Wall Street, the Dow Jones Industrial Average finished up 0.9 percent, the S&P 500 gained 0.6 percent and the tech-rich Nasdaq added 0.3 percent.

"Japanese markets are expected to be led by gains following rallies in US shares," Matsui Securities said.

Even as the Nikkei approaches its highest-ever closing value of 38,915.87, a record set in December 1989, "there is no overheating" felt in the market, SBI Securities senior strategist Ichiro Asai told AFP.

US chip equipment maker Applied Materials "announced a brisk earnings report in Tokyo's early morning hours", which is supporting tech shares, Asai said.

Other positive factors include the "relatively low price of Japanese shares" compared to those in overseas markets, partly helped by the cheaper yen, he said.

There are mixed views among market-watchers about whether the Nikkei will break its record soon, Asai added.

"One group think these rapid rises will trigger some kind of adjustment, but the other thinks share prices can surpass the record without hitting any psychological barriers."

The Dollar fetched 149.95 Yen in early Asian trade, against 150.24 yen in New York.

Chip-testing equipment maker Advantest surged 5.15 percent to 7,408 yen, and chip-making equipment manufacturer Tokyo Electron climbed 4.83 percent to 36,910 yen.

Shipping firm Kawasaki Kisen was up 3.94 percent at 7,182 yen. IT engineering firm Fujitsu was up 2.64 percent at 23,680 yen.