Japan’s Nikkei posts weekly gains supported by chip stocks

Chip industry stocks led Japan’s Nikkei index higher on Friday, also leading it to record weekly gains.

According to Reuters, the Nikkei rose 1.4% to close at 35,963.27 points. The index rose 1.09% during the week after trading began with a slight decline.

The index rose to 36,076.23 points during the session, falling slightly from its highest level in 34 years, which it recorded on Wednesday at 36,239.22 points, but it was unable to withstand above the threshold of 36,000 points.

Foreign investors are the main driver of the rise this year, as data from the Ministry of Finance showed this week that net stock purchases exceeded $8 billion in the seven-day period ending on January 13.

Chip-related stocks achieved outstanding performance, tracking the gains witnessed by their American counterparts overnight, after the Taiwanese Semiconductor Manufacturing Company (TSMC), the largest contract manufacturing semiconductor manufacturer in the world, expected 2024 revenue growth of more than 20 percent.

Tokyo Electron and Advantest stocks were the biggest gainers in points, and each contributed more than 100 points to the total rise recorded by the Nikkei during the day, which amounted to 497 points, jumping 6.03 percent and 8.2 percent, respectively.