Japan’s Topix closes at a 33-year peak and chip stocks follow Nasdaq’s gains

The Japanese Topix index closed at the highest level in 33 years on Tuesday, after companies showed strong expectations during the results season, and stocks of companies related to chip manufacturing tracked the gains made by the Nasdaq index at the close of trading on Monday.

The broader Topix index on the Tokyo Stock Exchange rose 0.58 percent to close at 2,127.18 points, the highest level since August 1990.

The Nikkei index also extended its gains, rising 0.73% to 29,842.99 points, its highest closing level since November 2021.

Shares of major chip-related companies tracked gains in US semiconductor stocks, which boosted the Nasdaq.

The Standard & Poor’s 500 and Dow Jones closed Monday’s session with modest gains, while the Nasdaq rose 0.66 percent.

Producers of chip manufacturing supplies led gains in the Japanese market, with Tokyo Electron jumping 4.23 percent and chip testing equipment maker Advantest 5.52 percent.

Recruit Holdings rose 3.46, supporting the Topix index even after the employment agency reported a drop in its annual profit.

Utilities sector shares rose 1.46%, leading gains among 33 sub-indices on the Tokyo Stock Exchange. Pharmaceutical stocks rose 1.28 percent.