{"id":15573,"date":"2024-10-30T07:44:12","date_gmt":"2024-10-30T07:44:12","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15573"},"modified":"2024-10-30T07:44:12","modified_gmt":"2024-10-30T07:44:12","slug":"tech-surge-lifts-nikkei-to-two-week-high","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/tech-surge-lifts-nikkei-to-two-week-high\/","title":{"rendered":"Tech Surge Lifts Nikkei to Two-Week High"},"content":{"rendered":"\n<p><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/15573.mp3\"><\/audio><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei 225 gains 0.96% to reach a two-week closing high, led by strong interest in semiconductor stocks.<\/li>\n\n\n\n<li>Traders cautiously return to shares sold off over recent political concerns as global tech momentum carries over to Japan.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The Nikkei 225 closed at <strong>39,489.15<\/strong>, marking a general upward movement as it approaches a key resistance level.<\/p>\n\n\n\n<p>From the chart below, we&#8217;re seeing the moving averages trending upwards, with price trading above each of these levels. This alignment often reflects bullish sentiment, suggesting that buyers are maintaining control.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-67-1024x450.jpeg\" alt=\"\" class=\"wp-image-15574\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Nikkei 225 pushes upward, nearing key resistance at 39,500, with bullish indicators suggesting continued momentum, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The MACD (12,26,9) also supports this, as a recent bullish crossover and green histogram bars indicate that momentum is building in favour of upward movement.<\/p>\n\n\n\n<p>Technology stocks were at the heart of this rally, spurred on by the Nasdaq\u2019s record-setting finish overnight, which boosted sentiment in Japanese tech. As traders cautiously buy back shares after last week\u2019s sell-off on political concerns, the tech rally reflects a mix of optimism and hedged bets on Japan\u2019s economic resilience amid looming uncertainties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Tech stocks lead the charge<\/h2>\n\n\n\n<p>The rally was fuelled mainly by chip-related stocks and tech companies, which capitalised on strong global demand and followed cues from U.S. markets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Sakura Internet is loading up on Nvidia GPUs to meet demand for AI in Japan, where customers&#39; need for power trumps concerns about costs <a href=\"https:\/\/t.co\/WlgEm2k63m\">https:\/\/t.co\/WlgEm2k63m<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1851481583439552558?ref_src=twsrc%5Etfw\">October 30, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Disco Corporation, a key player in semiconductor equipment, jumped 11.21%, while Lasertec advanced by 4.38%. Meanwhile, Advantest, a major producer of chip-testing equipment, gained 3.43%, providing the biggest single boost to the Nikkei\u2019s gains.<\/p>\n\n\n\n<p>These rises come as traders look at stabilising supply chains and ongoing demand for chips as a key growth area, even amidst geopolitical pressures that have impacted other sectors.<\/p>\n\n\n\n<p>This broader interest in tech stocks was reflected in SoftBank Group\u2019s 2.62% gain, which aligned with similar tech-driven optimism worldwide.<\/p>\n\n\n\n<p>With tech stocks leading, the Nikkei saw strong performance even with limited domestic drivers and a backdrop of global corporate earnings releases that kept traders somewhat cautious.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Buying back after a political-driven sell-off<\/h2>\n\n\n\n<p>The market\u2019s recent sell-off followed concerns that Japan\u2019s ruling coalition may lose its lower house majority, a prospect that sent the Nikkei down 2.7% last week.<\/p>\n\n\n\n<p>Although fears around Japan\u2019s political landscape remain, traders appear willing to cautiously re-enter the market, encouraged by a weaker yen which typically benefits exporters.<\/p>\n\n\n\n<p><strong>See also: <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/analysis\/yen-weakens-japans-election-clouds-rate-outlook\/\">Yen Weakens, Japan\u2019s Election Clouds Rate Outlook<\/a><\/strong><\/p>\n\n\n\n<p>While the market lacked strong catalysts, the recent activity has largely been a process of rebuying shares that were oversold on political news.<\/p>\n\n\n\n<p>Traders now seem more focused on the global tech rally than on domestic risks, at least for the moment.<\/p>\n\n\n\n<p>However, the <strong><a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japans-government-flux-after-election-gives-no-party-majority-yen-hit-2024-10-28\/\">political landscape<\/a><\/strong> remains a key factor, with potential outcomes for the ruling coalition likely to influence both sentiment and trading volumes as the situation unfolds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Mixed results across sectors<\/h2>\n\n\n\n<p>Not all stocks saw gains. Truck maker Hino Motors dropped 13.34% following an announcement of a \u00a5230 billion ($1.5 billion) extraordinary loss, a figure that prompted a sell-off among traders concerned about rising costs.<\/p>\n\n\n\n<p>Meanwhile, Chugai Pharmaceutical fell 4.9%, the largest drag on the Nikkei for the day, while Nitori Holdings and Komatsu recorded losses of 1.44% and 1.03%, respectively.<\/p>\n\n\n\n<p>Despite Komatsu\u2019s improved annual profit forecast, the results <strong><a href=\"https:\/\/www.reuters.com\/markets\/global-markets-wrapup-1-2024-10-30\/\">failed to stir enthusiasm<\/a><\/strong>, suggesting that traders may be holding back on some cyclical sectors in favour of tech.<\/p>\n\n\n\n<p>The overall sentiment, however, remained positive, with 162 of the 225 Nikkei components closing in the green, while 59 fell and four remained flat.<\/p>\n\n\n\n<p>Tech\u2019s strong performance offset losses in other areas, and we\u2019re seeing a tentative recovery in Japanese equities as traders gauge the balance between domestic political uncertainties and the broader strength of the tech sector.<\/p>\n\n\n\n<p>This focus on chip stocks reflects an appetite for growth-driven sectors in a market still watchful of global political risk.<\/p>\n\n\n\n<p>With this balance of gains in technology and cautious positioning in politically sensitive areas, we expect the Nikkei\u2019s near-term trajectory to remain guided by global tech trends.<\/p>\n\n\n\n<p>Traders are likely to continue tracking political developments, as the ruling coalition\u2019s future could still impact broader market stability.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan&#8217;s Nikkei climbs as tech stocks follow the Nasdaq&#8217;s rally, while cautious traders return to equities despite ongoing political uncertainty. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,37],"class_list":["post-15573","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15573"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15573\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}