Skip to content
Grazia British
Japan's Nikkei hits record close for fourth day on chip gains ahead of Fed decision

Japan's Nikkei hits record close for fourth day on chip gains ahead of Fed decision

By Swedan Margen

Fashion

Japan’s Nikkei share average closed at a record high for a fourth consecutive session on Tuesday (Sep 16), as investors scooped up chip-related stocks ahead of the US Federal Reserve’s crucial policy decision on Wednesday (Sep 17).

The Nikkei rose 0.3 per cent to end the day at 44,902.27, after it crossed the key 45,000 level for the first time to hit a high of 45,055.38.

The market was closed on Monday for a public holiday.

The broader Topix rose 0.25 per cent to finish at 3,168.36 on Tuesday.

The latest rally was supported by a robust corporate outlook, which prompted analysts to raise target prices for 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 for the global economy, underpinned by hopes of rate cuts by the Fed, also boosted the Nikkei, he said.

BT in your inbox

Newsletter Img

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

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.”

Shares of chip-testing equipment maker Advantest recovered from early losses to rise 1.29 per cent, providing the biggest boost to the Nikkei.

SEE ALSO

The Nikkei rose 0.89 per cent to 44,768.12, after gaining as much as 1.16 per cent to a record intraday high of 44,888.02 earlier in the session.

Chip-making equipment giant Tokyo Electron advanced 1.9 per cent.

Wafer maker Sumco surged 9 per cent to be the biggest percentage gainer in the Nikkei. Chip-related Disco and Resonac Holdings jumped 8.23 per cent and 6.13 per cent, respectively.

On the other hand, Uniqlo brand owner Fast Retailing fell 1.99 per cent to become the biggest drag on the Nikkei.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 66 per cent stocks advanced, 30 per cent fell, and 2 per cent traded flat. REUTERS

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

More Fashion

Japan's Nikkei hits record close for fourth day on chip gains ahead of Fed decision | Grazia British