2023-07-11 03:28:12
The Japanese Nikkei stock average rose on Tuesday following five straight sessions of losses as investors bought chip-related stocks on sentiment supported by the end of a sell-off in exchange-traded funds (ETFs).
The Nikkei index gained 0.28% to hit 32,279.88 by midday. The broader Topix index rose 0.13% to 2,246.24.
“Investors have been buying back into stocks following five consecutive losing sessions. They are now looking for a new catalyst, which might be the upcoming corporate outlook release,” said Takehiko Masuzawa, head of trading at Phillip Securities Japan. .
“The market might also fall during the summer, as it usually does at this time of year.
Chip test equipment maker Advantest jumped 3.57% and chip manufacturing equipment maker Tokyo Electron gained 0.6%.
Sumco shares jumped 5.69% following a report said Japan would give the top producer of silicon wafers a subsidy of up to 75 billion yen ($530 million) to fund additional capacity.
Socionext lost 4.68% before its share price fix as its major shareholders, including Panasonic Holdings and Development Bank of Japan, sold their entire stake in the chip design company. The share price will be fixed between Tuesday and Thursday.
Mr Masuzawa, of Phillip Securities, said the end of stock selling by asset managers in exchange-traded funds was positive for the market.
Strategists estimate that exchange-traded fund managers sold shares worth more than 1 trillion yen in their exchange-traded funds on Monday, ahead of the dividend distribution date.
Mitsubishi Motor rose 4.11% to become the Nikkei’s biggest gainer. Its counterpart Toyota Motor lost 1.7% and Honda Motor slipped 0.55%, dragging down 1.02% in the index of car manufacturers, the worst performer of the 33 industrial sub-indices of the Stock Exchange. Tokyo.
Of the 225 components of the Nikkei, 125 stocks rose, 96 fell and four were flat (Reported by Junko Fujita; Editing by Rashmi Aich).
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