Nikkei 225 Gains as Tech Stocks Buoyed by Earnings Optimism and U.S. Market Rally

Deep News04-27 08:30

Driven by expectations of improved earnings from Japanese and U.S. technology companies, demand for artificial intelligence-related stocks, including chip manufacturers, has increased, leading to a rise in Japan's Nikkei 225 index. The Nikkei 225 index advanced 0.4% to close at 59,973.86 points, while the Topix index declined 0.4% to 3,701.82 points. A chief global strategist stated that AI-related stocks are expected to remain robust, supported by strong earnings forecasts, which could lead to modest gains for the Nikkei index. He noted that these stocks are less affected by economic fluctuations and rising oil prices, with their valuations continuing to stay at elevated levels. In U.S. markets, the semiconductor sector index achieved its 18th consecutive day of gains last Friday, fueled by Intel's stock reaching a record high. Progress in Iran nuclear negotiations has stalled, and the effective blockade of the critical Strait of Hormuz shipping route has limited gains in global equity markets. Brent crude futures surged by up to 2.5%, reaching $107.97 per barrel. Among Topix index components, Mitsui & Co. experienced the largest decline, falling 2.6%. Within the index, which comprises 1,650 stocks, 527 advanced, 1,002 declined, and 121 remained unchanged.

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