Japanese Shares Gain as Sentiment Improves

The Nikkei 225 Index surged by 2.6% to approximately 54,000 points, and the broader Topix Index rose by 2.1% to reach 3,610 points on Tuesday. This rebound recouped losses from the previous day as the selloff in precious metals diminished, bolstering investor confidence. Additionally, the rise in Japanese stocks reflected Wall Street's gains after an unexpected upturn in US manufacturing activity, indicating a more favorable environment for global economic growth and corporate profits. Japanese shares received an extra lift from a weaker yen, enhancing the outlook for the country's export-driven economy. Over the weekend, Prime Minister Sanae Takaichi emphasized that a weaker yen could present significant advantages for exporters and help mitigate the automobile sector's exposure to US tariffs. Within technology and AI sectors, companies saw impressive gains, with Kioxia rising by 10%, Fujikura increasing by 6.8%, and Advantest improving by 3.9%. Export-focused companies also performed well, with Toyota Motor, Fast Retailing, and Mitsubishi Heavy Industries each advancing by 1.7%, 1.7%, and 1.3%, respectively.