(Bloomberg) — Japan’s Nikkei 225 Stock Average briefly rose 3%, its biggest advance since November 2022, as tech shares led gains after Tokyo Electron Ltd. boosted its full-year revenue and profit guidance.
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The Nikkei 225 climbed 2.9% to 37,963.97 at the 3 p.m. close in Tokyo, putting it about 2.5% away from a record. The Topix rose 2.1% to 2,612.03. Out of 2,152 stocks in the Topix, 1,596 rose and 492 fell, while 64 were unchanged.
Tokyo Electron contributed the most to the Topix’s gain, increasing 13% to reach a record high after the chipmaking equipment manufacturer projected that operating income for the fiscal year to March will now be ¥445 billion. SoftBank Group Corp. extended gains on an explosive rally of its Arm Holdings Plc.
“If the Nikkei reaches an all-time high in the near term, that would be earlier than I thought,” said Masahiro Yamaguchi, a senior market analyst at SMBC Trust Bank Ltd. “While there’s a sense of caution over current levels, the rally in semiconductor-related stocks on the back of improved earnings and the AI narrative doesn’t feel out of place.”
Exporters were supported after the yen weakened 0.1% to 149.50 to the dollar after touching the lowest since late November.
Sector-wise, insurers such as MS&AD Insurance Group Holdings Inc. helped lift the Nikkei 225 after a report said the Financial Services Agency asked property-and-casualty insurers to accelerate their disposal of cross-shareholdings.
ADVANCERS
DECLINERS
INSIGHTS
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31 of the 33 sector indexes on the Tokyo Stock Exchange advanced; Tokyo Stock Exchange TOPIX Insurance Index was the best performer, while Tokyo Stock Exchange TOPIX Pulp And Paper Index fell the most
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The MSCI AC Asia Pacific Index was up 0.9%
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Topix Index is up 10% year-to-date, vs. MSCI AC Asia Pacific Index down 0.4%
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Topix Index members are trading at 15.3 times their estimated earnings for the next 12 months
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This story was produced with the assistance of Bloomberg Automation.
–With assistance from Yasutaka Tamura.
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