FX.co ★ Japanese Shares Rally on Tech, Bank Boost

The Nikkei 225 Index experienced a significant surge of 3.92%, closing at an unprecedented 54,721 on Tuesday, primarily driven by a rally in technology and financial stocks. Japanese equities mirrored the upward trend of global markets, bolstered by a resurgence in precious metals that enhanced investors' risk appetite. Additionally, unexpected growth in U.S. factory activity suggested a more favorable environment for global economic expansion and corporate profitability. The outlook for Japan's export-driven economy was further brightened by a weaker yen. Leading the charge were technology and AI-focused stocks, such as Kioxia Holdings, which soared by 12.7%, Advantest at 7%, Fujikura with an 8.6% increase, SoftBank Group rising by 4.9%, and Disco Corp advancing by 7.1%. The financial sector also saw strong performance, highlighted by a 5.8% jump in Mizuho Financial shares following a better-than-expected quarterly profit and the announcement of additional share buybacks. Mitsubishi UFJ and Sumitomo Mitsui also posted gains of 4.6% and 4.4%, respectively.