Nikkei closed higher after the end of a profit-taking wave

On Thursday, the Nikkei index closed higher as investors seized the opportunity to buy stocks following a recent bout of profit-taking amidst the start of the new fiscal year.

The Nikkei advanced by 0.81 percent at the close, reaching 39,773.14 points, after peaking during the session with a gain of up to two percent, surpassing the 40,000-point mark.

The broader Topix index also ended the day in positive territory, climbing by 0.94 percent to 2,732.00 points.

Shares of chip-related company SocialNext surged by 17.55 percent, hitting the daily high, after Morgan Stanley Securities raised its recommendation for the stock.

Fanuc, a prominent manufacturer of robots, saw a rise of 3.16 percent, while SoftBank Group, known for its investments in emerging technology companies, increased by 1.07 percent.

Following its decline in the previous session, during which it dropped by 4.6 percent from its record high on March 22, the Nikkei rebounded.

Kao shares also experienced a notable increase of 5.14 percent after Hong Kong-based investment firm Oasis Management announced plans to launch a campaign to rebrand the cosmetics company and enhance its product marketing strategies.

Itoshu shares extended gains for a second consecutive session, climbing by 0.68 percent. This came after the trading company revealed its goal of achieving record profits of 880 billion yen, up from the previous estimate of 800 billion yen for the fiscal year that recently concluded. The company’s shares had surged by 6.4 percent in the prior session.