Japan’s Nikkei index touches an 8-month high

Japanese stocks rose slightly on Tuesday, with the Nikkei index touching an eight-month high, amid optimism about the results of a group of companies and the expansion of government subsidies for chip production.

Momentum eased in the afternoon session, dragged down by steel producers amid indications of weaker demand from China.

The Nikkei index rose 0.09 percent to close at 28,620.07 points, continuing to rise for the second consecutive session. The index had previously jumped in early trading by 0.75% to 28,806.69, the highest level since August 19, 2022.

The broader Topix index rose 0.24 percent to 2,042.15 points.

Mitsubishi Electric jumped 3.28 percent, to be the top gainer on the Nikkei index, after the company said it would spin off its car audio business. Automaker Nidec Corp rose 0.92%, as upbeat estimates for full-year earnings erased the quarterly loss reported on Monday.

Chip stocks rose after Industry Minister Yasutoshi Nishimura said Japan plans to provide additional support to chipmaker Rapidus, which plans to build a modern factory on the northern island of Hokkaido.

Nippon Steel fell 3.8 percent while Kobe Steel fell 3 percent, making them the biggest losers on the Nikkei index. On Monday, benchmark prices for iron ore and steel fell to their lowest since November.