Japan’s Nikkei closes higher

On Tuesday, the Japanese Nikkei index surged, mirroring the strong performance of Wall Street the previous night. Investors eagerly awaited the outcome of the Federal Reserve meeting, seeking insights that could impact the Japanese currency exchange rate.

The Nikkei climbed by 1.24 percent to close at 38,405.66 points. However, the index experienced its first monthly decline of the year, slipping by approximately 4.99 percent by the end of April, marking the steepest monthly drop since December 2022.

Meanwhile, the broader Topix index rallied by 2.2 percent to reach 2,743.17 points.

Shuji Hosui, chief strategist at Daiwa Securities, noted, “US stocks have demonstrated robust performance since last week’s close, coupled with lower trading levels in US bonds. This bolstered Japanese stocks today.”

Monday saw Japanese markets closed due to a public holiday.

Key players in the market, including Tokyo Electron chip manufacturing equipment shares, saw gains, with a 2.6 percent increase. Shin-Etsu Chemical, a silicon chip manufacturer, surged by 4.89 percent, while SoftBank Group, known for its investments in technology, rose by 1.71 percent.

Investor attention remains fixed on the Federal Reserve’s monetary policy meeting this week, particularly after the Japanese currency rebounded from a 34-year low of 160.245 against the dollar on Monday. This surge, reportedly due to government intervention, heightened market interest.

However, Japanese authorities have yet to confirm any intervention in the currency market to bolster the yen.

Of the 225 stocks listed on the Nikkei index, 187 stocks advanced, while 38 stocks witnessed declines.