Japan’s Nikkei crosses key 60,000 level for first time on tech rally

[TOKYO] Japan’s Nikkei share average crossed the 60,000 level for the first time on Thursday (Apr 23), lifted earlier by technology stocks as risk sentiment improved after US President Donald Trump extended the ceasefire with Iran.

The index, however, shed early gains in choppy trade and was little changed by 0127 GMT, after falling as much as 0.7 per cent earlier in the session. It touched a record high of 60,013.98 at its peak.

The broader Topix was also flat at 3,744.93.

Trump said that the indefinite extension of the ceasefire followed a request by Pakistani mediators. However, the US Navy’s blockade of Iranian ports remained in effect, and Iran seized two ships in the Strait of Hormuz.

“There are still uncertainties surrounding the Middle East war. The Strait of Hormuz is not completely open and the oil prices remain high,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.

“Investors have bought the shares on optimism for the war’s end until now. But for the index to rise further, they need more positive cues that support the fundamentals that could also lift domestic demand-related stocks.”

The Nikkei has recouped all losses since the start of the US-Iran war in late February, though gains have been driven by a narrow group of artificial intelligence-related stocks, including SoftBank Group and Advantest.

The so-called NT ratio, the Nikkei 225 divided by the broader Topix, hit a record high of 15.74 on Wednesday, underscoring how the rally has outpaced the wider market.

Chip-related shares climbed on Thursday, with Advantest and Tokyo Electron up 2.65 per cent and 1.76 per cent, respectively.

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Technology investor SoftBank Group jumped 6.4 per cent.

Fibre optic cable maker Fujikura gained 0.65 per cent.

Uniqlo-brand owner Fast Retailing fell 1.8 per cent to weigh on the Nikkei the most.

Of the 1,600 shares on the Tokyo Stock Exchange’s prime market, 17 per cent rose and 78 per cent fell, and 3 per cent traded flat. REUTERS