Tuesday, 28 May 2024

Nikkei index closed higher despite profit-taking

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The Japanese Nikkei index closed higher today, Tuesday, and briefly exceeded the level of 40,000 points before some of the gains were dissipated due to profit-taking operations and the risks of intervention by the Japanese authorities for the sake of the yen.

According to Reuters, the Nikkei index ended Tuesday up 0.1% at 39,838.91%.

The index rose about 19% this year, exceeding the level of 40,000 points to record levels last month, but profit-taking operations pushed it to the lowest level in two weeks on Monday.

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Fast Retailing, owner of the Uniqlo brand, was able to hold on to a 0.1 percent increase, while Toyota Motor shares lost early gains to close down 0.2 percent.

As for the shares of Tokyo Electron, a giant in chip manufacturing equipment, it maintained gains and rose 3.4 percent.

Technology-related stocks received a strong boost from their American counterparts as the artificial intelligence craze continues to boost the US semiconductor sector index.

Chip testing equipment maker Lasertech rose 1.9%, while Sumco, the producer of silicon used by semiconductor manufacturers, recorded the best performance, rising 4.4%.

In addition to profit-taking, the continued risk of authorities intervening to protect the Japanese currency limited gains, with the yen continuing to trade near 151.72 to the dollar.

Japanese Finance Minister Shunichi Suzuki said on Tuesday that he was not ruling out any options to respond to uncontrolled currency movements.

The broader Topix index closed 0.25% lower at 2,714.45 points.

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