Nikkei 225 Rises as Tech Stocks Lead Gains Amid Domestic Health Concerns

(RTTNews) – Japanese equities edged higher on Monday, building on Friday’s strong rally, with the Nikkei 225 Index approaching the 27,000 level as technology shares drove momentum following optimistic signals from Wall Street.

However, market sentiment remains cautious amid a surge in domestic coronavirus infections, with Japan reporting over 70,000 daily cases for a fourth consecutive day. Nearly all 47 prefectures are under quasi-emergency measures, with Tokyo poised to escalate restrictions soon.

The Nikkei 225 rose 245.909 points, or 0.92%, to 26,963.24, after reaching a session high of 26,967.44 and a low of 26,541.65. Technology stocks were among the top performers, with Advantest climbing nearly 4% and Tokyo Electron advancing 2%. In contrast, banking shares faced pressure, as Sumitomo Mitsui Financial dropped over 2% and Mizuho Financial declined 1.5%.

Export-driven companies showed mixed performance, with Sony gaining 3% and Canon edging up 0.5%, while Mitsubishi Electric slipped 2%. Notable gainers included Alps Alpine, up 18%, and Z Holdings, rising 5.5%. Meanwhile, Chubu Electric Power plunged over 9%, and Omron fell nearly 8%.

Economically, Japan’s retail sales grew 1.4% year-over-year in December but missed forecasts of 2.7% growth. Industrial output rose 2.7% annually, slightly below expectations, with monthly production declining 1.0%. The U.S. dollar traded around 115 yen, reflecting a strengthening greenback.

Global markets painted a mixed picture: Wall Street closed sharply higher, with the Nasdaq surging 3.1% and the S&P 500 gaining 2.4%, while European indices including the FTSE 100 and DAX fell 1.2% and 1.3%, respectively. Oil prices modestly rose, with WTI futures ending at $88.82 a barrel amid supply constraints and geopolitical tensions.

Source link