Japan's Nikkei rises on hopes US shutdown may end soon
Japan's Nikkei share average rose 0.9% to 50,728.56, driven by optimism over a potential end to the U.S. government shutdown. The broader Topix index increased by 0.17%. Key technology stocks like Advantest and Tokyo Electron saw gains, while smaller chip-related shares surged. Notably, Kioxia Holdings jumped 12% and Towa surged 23.77%. However, Honda Motor fell 4.6% after cutting its profit forecast. Overall, 68% of stocks on the Tokyo Stock Exchange rose, reflecting positive market sentiment.
By Junko Fujita
TOKYO, Nov 10 (Reuters) - Japan’s Nikkei share average rose on Monday, tracking gains in U.S. stock futures as hopes grew that the historic U.S. government shutdown may end soon.
The Nikkei (.N225) climbed 0.9% to 50,728.56 by 0143 GMT. The broader Topix (.TOPX) edged up 0.17% to 3,304.35.
“Market players bought stocks as they priced in gains for Wall Street shares later in the day, with hopes that the U.S. government shutdown will be over soon,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
“Investors were looking at U.S. stock futures, which were rising in Asian trading.”
S&P (EScv1) and Nasdaq futures (NQc1) were last up 0.54% and 0.87%, respectively.
Bipartisan talks in the U.S. Senate to end the federal government shutdown appear to have taken a positive turn, Senate Majority Leader John Thune said, while the Senate moved towards a vote later on Sunday on reopening the government with funding measures through January.
In Japan, chip-testing equipment maker Advantest (6857.T) rose 3.71%, chip-making equipment maker Tokyo Electron (8035.T) was up 4.36% and technology investor SoftBank Group (9984.T) gained 2.24%.
“These three stocks lifted the Nikkei on Monday, but their momentum was not as strong as last month. However, smaller chip-related shares surged, showing investors’ strong appetite for technology stocks,” said Shimada.
Chip-maker Kioxia Holdings (285A.T) jumped 12%. Semiconductor equipment maker Towa (6315.T) surged 23.77% to a near daily limit high.
Flea market app operator Mercari (4385.T) jumped 14.23% after posting a 70% gain in net profit for the quarter ended September.
Honda Motor (7267.T) fell 4.6% after Japan’s second-largest automaker slashed its full-year profit forecast by 21% on Friday.
Its peer Toyota Motor (7203.T) lost 0.74% and Mazda Motor (7261.T) slumped 5%.
Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 68% stocks rose, 27% fell and 4% traded flat.
