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Japan's Nikkei Adds to Record Quarterly Gain on Tech Rebound
🇸🇬 Singapore /Technology

Japan's Nikkei Adds to Record Quarterly Gain on Tech Rebound

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Japan's Nikkei share average climbed on Tuesday, driven by a rebound in technology stocks.
  • The benchmark Nikkei 225 rose 1.36 percent, poised for a 36 percent gain in the past quarter, its sharpest quarterly advance since 1965.
  • Global markets were buoyed by reports of renewed U.S.-Iran talks, though potential portfolio adjustments by institutional investors could cause volatility.

Japan's Nikkei share average advanced on Tuesday, extending its rally fueled by a strong performance in technology stocks. This rebound has been instrumental in driving the index to record quarterly gains.

The benchmark Nikkei 225 saw an early trading increase of 1.36 percent, reaching 70,416.02. The index is on track to achieve a remarkable 36 percent gain over the past three months, marking its most significant quarterly advance since data became available in 1965. The broader Topix index also participated in the upward trend, rising 0.73 percent to 4,010.88.

Japanese stocks mirrored a positive sentiment in global equities, which was boosted by news of an agreement between the United States and Iran to halt hostilities and resume talks regarding the Strait of Hormuz. U.S. stocks had previously closed significantly higher, with the Dow Jones Industrial Average reaching a record closing high.

Analysts at Sony Financial Group noted that "Reports that working-level talks between the U.S. and Iran are expected to take place should also provide support for stock prices." However, they cautioned that "institutional investors are expected to adjust their portfolios ahead of the end of the quarter today, volatile price movements are possible."

Domestically, Japan's industrial output data for May showed a 0.5 percent month-on-month increase in factory output, falling short of expectations. Manufacturers, however, forecast a more robust 3.7 percent increase for June. The foreign exchange market is also a key focus, with the yen hitting a 40-year low against the dollar overnight. On the Nikkei 225, there were 149 advancing stocks compared to 72 decliners, with three remaining unchanged.

Reports that working-level talks between the U.S. and Iran are expected to take place should also provide support for stock prices. However, as institutional investors are expected to adjust their portfolios ahead of the end of the quarter today, volatile price movements are possible.

— Sony Financial Group analysts"Reports that working-level talks between the U.S. and Iran are expected to take place should also provide support for stock prices," Sony Financial Group analysts said in a report. "However, as institutional investors are expected to adjust their portfolios ahead of the end of the quarter today, volatile price movements are possible."
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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