Nikkei 225 Hits 40,000 After Nearly Three Months; Most Asian Markets Showed Mixed Performance
Sophia Cruz•Tuesday, July 2, 2024•1 min read
In today’s trading session, Asian stocks showed mixed performance following gains on Wall Street and a surge in US bond yields, influenced by election-related factors impacting markets globally.
The Nikkei 225 stock index closed above the 40,000 mark for the first time in three months, as exports were boosted by the yen’s weakness, reaching a 37-year low in the upper 161 range against the US dollar.
Nikkei 225 stock average increased by 1.12%, ending at 40,074.69, its highest close since March 29. The broader Topix index rose by 1.15% to 2,856.62, its highest close since January 4, 1990.
In the top-tier Prime Market, precision instruments, transportation equipment, and insurance sectors saw notable gains. Sony Group Corp. increased by 1.16% as investors responded positively to its plans to launch a cryptocurrency exchange. Softbank Group Corp. slightly increased by 0.05% while KDDI Corp. increased by 0.48%.
Although the Nikkei 225 was up during the morning session, investors should keep an eye on statements from the Bank of Japan and the Japanese government. Any plans from the BoJ or the government to intervene in support of the yen could potentially reverse Nikkei’s gains.
Meanwhile, the Hang Seng Index also increased by 1.46%. Investors responded to new home sales data from China, with the Hang Seng Mainland Properties jumping to 4.56%. According to CN Wire, the top 100 Chinese property developers reported a 36.3% month-on-month increase in new home sales in June.
However, the mainland China markets remained under pressure. The Shenzhen Composite fell by 0.52%, while the CSI 300 went down by 0.08%
In Australia, the S&P/ASX 200 also shed 0.4% to 7,718.20, while south Korea’s Kospi dropped by 0.8% closing at 2,781.92.
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.