Nikkei closes higher, boosted by gains on Wall Street

Japan’s Nikkei average closed higher on Tuesday, tracking Wall Street’s rally at the close Monday night, as investors snapped up stocks after sharp losses in the previous session and chip-related stocks led gains.

The Nikkei index rose 0.56 percent to close at 32,238.89 points, recouping some of its losses of 1.27 percent on Monday. The broader Topix index rose 0.41 percent to 2,290.31 at the close.

Japan’s economy expanded for the third consecutive quarter from April to June, as strong auto exports and the arrival of tourists helped offset the impact of a slow recovery in consumption from the effects of the Covid pandemic.

The S&P 500 and Nasdaq closed higher on Monday as chip maker Nvidia Corp. rose after a strong recommendation from Morgan Stanley, leading to gains in other huge growth stocks.

In Japan, chipmaking equipment maker Tokyo Electron rose 1.68 percent, giving the biggest boost to the Nikkei index. Advantest, a maker of chip testing equipment, gained 1.91 percent.

Sensor manufacturing firm TDK rose 2.47 percent.

Japan’s Post Holdings jumped 4.89 percent after the group of banks and insurance companies announced the repurchase of up to 8.4 percent of its shares at a value of 300 billion yen.

Dentsu Group fell 7.65 percent, becoming the worst performer on the Nikkei index, after the advertising company cut its annual net profit forecast.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.