Japan’s Nikkei index rose on Thursday, ending a four-day losing streak, supported by gains in chipmakers that followed their American counterparts.
The Nikkei climbed 0.87% to 44,936.73 points after dropping 2.6% over the previous four sessions. Meanwhile, the broader Topix index fell 0.24% to 3,087.4 points.
Tokyo Electron’s stock jumped 7.88% on Thursday after the U.S. Philadelphia semiconductor index hit a record high overnight.
Advantest shares gained 2.52%, and SoftBank Group, which invests in AI technology companies, rose 5.78%.
Shigetoshi Kamada, general manager of research at Tachibana Securities, said, “Investors who bet on U.S. tech stocks bought Japanese tech stocks today.”
However, analysts expect the rally to be short-lived given the Topix decline.
Kamada noted, “Individual investors are refraining from buying stocks, waiting for further declines.”
He explained, “The Nikkei has risen excessively. The Topix decline represents a true reflection of market sentiment.”
The Nikkei, which is heavily weighted with chip-related stocks, hit a record high last month, supported by gains in the sector. The index has risen 12.6% year-to-date and is on track for its third consecutive annual gain.
Bank stocks fell on Thursday, with Mitsubishi UFJ Financial Group shares down 1.92%. Mizuho Financial Group and Sumitomo Mitsui Financial Group declined 1.4% and 1.04%, respectively.
Automobile stocks also dropped, with Toyota Motor down 0.58% and Honda Motor down 0.53%.
Among more than 1,600 stocks traded on the Tokyo Stock Exchange’s main market, 63% declined, 33% rose, and 2% remained unchanged.
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