Japan’s Nikkei index climbed 6% on Tuesday, experiencing a technical rebound from its lowest point in 18 months reached the prior day. This rebound was fueled by local traders who found encouragement in the strong performance of U.S. tech stocks.
As of 9:21 BKK time (GMT+7) on Tuesday, the Nikkei had risen to 33,113.17, marking a 6.35% increase. Additionally, the broader Topix index climbed 6.83% to 2,444.89.
Prior to today’s session, Nikkei 225 had plummeted 26.6% from its previous high of 42,426 points in July 2024. The market felt pain from the U.S. President Donald Trump’s tariffs hike, resulting in a selloff in banks and technology stocks.
Among Japanese stocks, prominent gains were observed in the tech sector, with Tokyo Electron soaring 8.62% and Advantest, a supplier of chip-testing equipment, gaining 11.56%. Meanwhile, banking stocks also saw significant advances: Mitsubishi UFJ Financial Group jumped 12.30%, while Mizuho Financial Group increased by 13.98%. Additionally, Mitsui & Co rose 6.38%, Sumitomo Corp increased 7.87% and Itochi gained 6.08%.
In the U.S., despite the S&P 500 and Dow Jones ending in the red, the tech-focused Nasdaq managed slight gains on Monday. Investors faced a roller coaster session amid concerns about economic slowdown and escalating inflation, as President Donald Trump remained steadfast on tariff policies and cautioned about potential further tariff hikes on China.
