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Nikkei 225 Index Rises on Optimism for Tech Earnings and US Market Gains

On April 27, driven by expectations of strong earnings from Japanese and American tech companies, demand for AI-related stocks, including chip manufacturers, increased, leading to a rise in Japan's Nikkei 225 Index. The Nikkei 225 Index rose by 0.4% to 59,973.86 points, while the Topix Index fell by 0.4% to 3,701.82 points. Shoji Hirakawa, Chief Global Strategist at Tokai Tokyo Research Institute, stated, 'Supported by strong earnings expectations, AI-related stocks are expected to remain robust, and the Nikkei index may see slight upward movement. These stocks are less affected by economic fluctuations and rising oil prices, maintaining high valuations.' In the US market, driven by Intel's stock reaching an all-time high, the semiconductor sector index achieved its 18th consecutive day of gains last Friday. The stagnation in the Iran negotiation process and the effective blockade of the critical Strait of Hormuz limited the global stock market's gains. Brent crude oil futures surged by as much as 2.5%, reaching $107.97 per barrel. Among the Topix Index constituents, Mitsui & Co. saw the largest decline, falling by 2.6%. Of the 1,650 stocks in the index, 527 rose, 1,002 fell, and 121 remained unchanged.

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