Nikkei Surges to Three-Week High Amid Tech Stock Rally

Tokyo’s Nikkei average reached its highest level in three weeks on Wednesday, propelled by a robust recovery on Wall Street that encouraged investors to acquire prominent local technology shares.

The Nikkei index attained a high of 35,142.12, marking its peak since April 2nd, before concluding the morning session with a gain of 1.72% at 34,808.8.

The broader Topix index also experienced an increase, rising by 1.74% to reach 2,576.2.

Takuro Hayashi, who heads the investment research centre at IwaiCosmo Securities, noted that investors promptly sold stocks upon witnessing the index’s strong rebound. However, he added that the overall market sentiment remains relatively positive.

Hayashi also stated that the market is awaiting the outcome of discussions between US and Japanese finance leaders this week, as these talks could potentially influence the yen’s direction.

Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent are scheduled to meet in Washington this week, with currency rates expected to be a central topic of discussion.

In the previous session, the yen had strengthened to a seven-month high of 139.885 against the dollar.

The dollar experienced a rebound on Wednesday, causing the yen to decline by 0.25%, trading at 141.95.

US stocks experienced gains overnight, fueled by a series of quarterly earnings reports and indications of easing US-China trade tensions, which attracted buyers.

US stocks further increased in extended trading after President Donald Trump clarified that he does not intend to dismiss Federal Reserve Chair Jerome Powell, moderating his recent criticism of the central bank head.

Trump informed reporters that he intends to adopt a cooperative approach in negotiations with China, suggesting that tariffs on imports from the country would be significantly reduced following a deal, although not eliminated entirely.

In Japan, shares of chip-related companies Tokyo Electron and Advantest increased by 2.11% and 2.32%, respectively.

Fast Retailing, the owner of the Uniqlo brand, saw its shares climb by 1.55%, making it the most significant contributor to the Nikkei’s gains.

Fujifilm Holdings shares surged by 11.51% following Regeneron Pharmaceuticals’ announcement of a deal worth over $3 billion with the Japanese healthcare company’s drug division.