Bridget Riley
TOKYO (Reuters) – The average stock index jumped to a new 34-year high on Tuesday as trading resumed after the long holiday weekend, with technology shares and strong corporate earnings supporting the benchmark stock index.
By midday, the Nikkei was up 2.44% at 37,798.89, its highest level since February 1990. Of the 225 components of the index, 185 rose and 39 fell.
The broader measure rose 1.85%.
Japanese markets were closed on Monday for a national holiday.
“The Nikkei rally has further strengthened with ARM Holdings (LON:) becoming the latest addition to the AI frenzy after last week’s strong performance,” said Charu Chanana, head of FX strategy at Saxo Markets.
Shares Hand Holdings (NASDAQ:) rose Wednesday after the company forecast better-than-expected quarterly results, driven by demand for its technology to develop chips for artificial intelligence functions.
Shares of SoftBank (TYO:) Group Corp, which owns 90% of ARM Holdings, rose 6.93% on Tuesday.
Chip giant Tokyo Electron Ltd gained 11.24%, making it the second-fastest gainer.
Japanese stocks also received support from Wall Street. Overnight, the Nasdaq briefly topped its record close since November 2021.
Among other top gainers, insurers MS&AD Insurance Group Holdings and Tokio Marine Holdings rose 11.42% and 10.25%, respectively. MS&AD Insurance showed the best result.
Otsuka Holdings was among the stocks that lost 6.91% after the company said its experimental drug failed to meet the primary goal of a late-stage trial to treat agitation associated with Alzheimer’s dementia.
JGC Holdings Corp shares fell 17.72% to finish at the bottom of the pack. Nippon Paper Industries Co Ltd was next, down 14.58%, and Mazda Motor (OTC:) Corp, down 7.5%.