\u00a0<\/p>\n
Japan\u2019s Nikkei share average made a significant recovery on Monday, rebounding from a three-month low reached in the previous session. The uptick followed a strong performance by Wall Street at the end of last week, which positively influenced investor sentiment across global markets.<\/p>\n
The Nikkei 225 surged 2.13% to close at 38,468.63, marking its first gain in nine trading sessions. The broader Topix index also saw substantial growth, climbing 2.23% to finish at 2,759.67. This broad-based rally came in response to a rebound in U.S. technology stocks and improved market expectations regarding Federal Reserve monetary policy.<\/p>\n
The Nikkei\u2019s rally was prompted by Wall Street\u2019s positive turnaround on Friday, which saw major indices climb as investors returned to technology giants that had previously experienced significant sell-offs. Additionally, favorable U.S. inflation data has heightened hopes that the Federal Reserve may soon start reducing interest rates, further boosting investor confidence.<\/p>\n
Masahiro Ichikawa, Chief Market Strategist at Sumitomo Mitsui DS Asset Management, commented on the shift, noting, \u201cThe decline in U.S. technology shares has finally paused, which seems to be a positive factor for Japanese equities.\u201d<\/p>\n
In Monday\u2019s trading, all but 11 of the Nikkei\u2019s 225 components posted gains. Notably, technology and chip-related stocks contributed significantly to the index\u2019s advance, with Tokyo Electron and Advantest rising 3.7% and 4.1%, respectively. SoftBank Group, a prominent investor in AI startups, increased by 2.3%. Furthermore, every sector on the Tokyo Stock Exchange experienced growth, reflecting broad-based optimism.<\/p>\n
The rally comes ahead of key policy meetings by the Bank of Japan and the Federal Reserve scheduled for July 30-31. Ichikawa anticipates that the Nikkei may face limited volatility as the markets await the outcomes of these pivotal discussions.<\/p>\n
Investor attention will also be focused on earnings reports from major U.S. technology firms, often referred to as the \u201cMagnificent Seven,\u201d which are expected to further influence market dynamics.<\/p>\n
Among individual stocks, Shin-Etsu Chemical saw a notable rise of 8.6% after surpassing its operating profit forecast for the April-June quarter. Conversely, Eisai experienced a sharp decline of nearly 13% following the European Union regulator\u2019s decision to reject its Leqembi treatment for early Alzheimer\u2019s disease.<\/p>\n
Overall, the Nikkei\u2019s rebound reflects a broader positive sentiment driven by external market forces and sector-specific developments.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Nikkei\u2019s rally was prompted by Wall Street\u2019s positive turnaround on Friday, which saw major indices climb as investors returned to technology giants that had previously experienced significant sell-offs. Additionally, favorable U.S. inflation data has heightened hopes that the Federal Reserve may soon start reducing interest rates, further boosting investor confidence.<\/p>\n","protected":false},"author":413,"featured_media":25224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[14213,14215,268,14214,1825,12832,8756,12308,6600,4659],"class_list":["post-25223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-japan","tag-asset","tag-asset-managment","tag-japan","tag-managment","tag-mitsui-sumitomo","tag-nikkie","tag-stock","tag-sumitomo-mitsui-financial-group","tag-tokyo-stock-exchange","tag-wall-street"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/25223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/users\/413"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/comments?post=25223"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/25223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media\/25224"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media?parent=25223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/categories?post=25223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/tags?post=25223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}