A man looks at an electric monitor displaying a stock quotation board outside a bank in Tokyo, Japan, June 5, 2023. REUTERS/Issei Kato/File photo
TOKYO – Japan’s benchmark Nikkei gauge surged on Tuesday, closing over 33,000 for the first time in 33 years, led by technology shares on expectations of a flood of investment in chip-related companies.
SoftBank Group Corp jumped 5.25 percent on reports it may team up on an AI venture with ChatGPT operator OpenAI and that its semiconductor unit Arm is in investment talks with Intel Corp. Chip-testing equipment maker Advantest Corp soared 4.79 percent.
Toyota Motor Corp shares leapt 4.99 percent after the automaker announced plans to market next-generation battery electronic vehicles (EVs) from 2026.
The Nikkei climbed for a third-straight session, adding 1.8 percent to 33,018.65, closing above the key psychological level for the first time since July 1990. The broader Topix gained 1.16 percent to 2,264.79.
Global shares climbed on Monday ahead of closely watched U.S. inflation data on and policy decisions from the Federal Reserve, Bank of Japan, and other central banks.
Toyota’s EV strategy “was well received by the market, and also last night the U.S. market was strong, so we have a strong market today,” said Daiwa Securities strategist Kenji Abe.
With expectations of a soft landing in the U.S. and Fed easing later in the year, “this high valuation is likely to continue for the time being,” he added.
Among Nikkei constituents, 170 companies advanced, while 54 declined. Drugmaker Eisai Co Ltd was an outlier, giving back 2.22 percent after a surge on Monday on positive news about its Alzheimer’s treatment.
The auto sector rose 3.4 percent to become the best performer among the Tokyo Stock Exchange’s 33 industry sub-indexes. A basket of paper producers was the biggest loser, falling 1.05 percent.
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