The Nikkei’s average share price. The N225 index increased 1.13 percent to 29,720.62, its highest level in two weeks. The Topix as a whole. TOPX is now at 1,968.76, up 0.57 percent.
“Because of solid earnings growth, the stock market is entering a period where it will rise even as interest rates rise. This stage will inevitably lead to a market overheating, but we are not yet there “Rakuten Security’s chief strategist, Masayuki Kubota, said.
Nippon Electric Glass 5214.T gained 3.9 percent after the maker of glass for cars and flat panel displays raised its earnings forecast, citing higher shipments. As the industry looks set to improve manufacturing despite a global shortage of chips, related stocks continued to lead the market. 6857.T increased by 3.4 percent, while Tokyo Electron increased by 2.8 percent and Screen Holdings increased by 2.7 percent.
According to Fumio Matsumoto, chief strategist at Okasan Securities, the bullish sentiment was also fueled by US President Joe Biden’s $2 trillion investment proposal, which included a request to invest $50 billion on chip manufacturing and other technology study.
Sony Group 6758.T rose 4.3 percent in the wider electronic machinery market, while Softbank Group 9984.T rose 3.6 percent thanks to strength in global tech shares. Another bright spot was the auto industry, which benefited from the yen’s recent depreciation. Mazda Motor 7261.T increased by 2.7 percent, while Suzuki Motor 7269.T increased by 2.7 percent.
Investors, on the other hand, shifted out of value stocks, such as shippers, which had seen a sharp recovery in recent months. Nippon Yusen 9101.T was down 2.6 percent, while Mitsui OSK Lines 9104.T was down 1.9 percent. Topix value underperformed value stocks. TOPGV increased by only 0.15 percent, compared to 1.0 percent for Topix Development. TOPXG is a trademark of TOPXG.