© Reuters. FILE PHOTO: A man looks at an electric board displaying the Nikkei stock average outside a brokerage in Tokyo, Japan June 14, 2023. REUTERS/Kim Kyung-Hoon/File Photo
By Brigid Riley
TOKYO (Reuters) – share average jumped to a fresh 34-year high on Tuesday as trading resumed after a long holiday weekend, with tech-related shares and strong corporate earnings supporting the benchmark stock index.
The Nikkei had climbed 2.44% to 37,798.89 by the midday close, hitting its highest level since February 1990. Out of the index’s 225 constituents, 185 gained while 39 declined.
The broader was up 1.85%.
Japanese markets were closed on Monday for a national holiday.
“The Nikkei rally has got an extra bump higher with ARM Holdings (LON:) being the latest addition to the AI frenzy after strong results last week,” said Charu Chanana, head of currency strategy at Saxo Markets.
Shares of Arm Holdings (NASDAQ:) have surged since Wednesday, after the company forecast better-than-expected quarterly results, powered by demand for its technology to design chips for artificial intelligence features.
SoftBank (TYO:) Group Corp, which has a 90% stake in ARM Holdings, saw its shares rise 6.93% on Tuesday.
Chip-sector giant Tokyo Electron Ltd gained 11.24%, making it the second best performer.
Japanese equities also received a boost from Wall Street. Overnight, the Nasdaq briefly surpassed its record closing high from November 2021.
Among other top gainers, insurance firms MS&AD Insurance Group Holdings and Tokio Marine Holdings gained 11.42% and 10.25%, respectively. MS&AD Insurance was the best performer.
Otsuka Holdings was among the decliners, shedding 6.91% after the company said its experimental drug failed to meet a primary late-stage trial goal in treating agitation associated with dementia due to Alzheimer’s disease.
JGC Holdings Corp fell 17.72% to sit at the bottom of the pack, followed by Nippon Paper Industries Co Ltd, losing 14.58%, and Mazda Motor (OTC:) Corp, down by 7.5%.