By Brigid Riley
TOKYO (Reuters) – Japan’s Nikkei 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 Topix 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 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 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 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 Corp, down by 7.5%.
(Reporting by Brigid Riley; Editing by Subhranshu Sahu)
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