Japan’s Nikkei closed at a 3-week high

On Tuesday, Japan’s Nikkei index surged over 1 percent, reflecting improved investor sentiment driven by heightened bets on potential US interest rate cuts and sustained gains in the technology sector.

Closing at 38,835.10 points, the Nikkei index climbed 1.57 percent, marking its highest closing level since April 15. The broader Topix index also ended higher, rising 0.65 percent to 2,746.22 points.

The bullish momentum was partly fueled by positive cues from US markets, where expectations of a Federal Reserve interest rate cut this year gained traction. Friday’s US jobs report, which revealed a slower-than-expected growth in April, bolstered investor confidence and spurred stock purchases.

Japanese equities experienced broad-based gains, with 152 out of 225 stocks on the Nikkei index recording advances. Technology shares, in particular, benefited from Wall Street’s performance, with Japanese tech firms rallying after Apple’s encouraging revenue results.

Major players in the Japanese technology sector saw notable gains, contributing significantly to the Nikkei’s upward trajectory. Tokyo Electron, a chip-making equipment giant, surged 5.2 percent, boosting the Nikkei by 179.47 points. Similarly, chip-related company Disco Corp soared 9 percent, marking the day’s best-performing stock.

SoftBank Group shares climbed 3.7 percent, while Advantest, a chip testing equipment maker, rose 2.3 percent.

Beyond the tech sector, Fast Retailing, the parent company of clothing brand Uniqlo, saw its shares rise 3.2 percent, lifting the Nikkei by 126.51 points.

However, not all stocks shared in the gains, as shares of Sony Group and Daiichi Sankyo Pharmaceutical Company declined by 2.9 percent and 3.2 percent, respectively.