Japan’s main stock market, the Nikkei 225, experienced a significant surge on Tuesday. The Nikkei 225 comprises 225 important companies in Japan and witnessed a rise of over 1,200 points. This remarkable increase was primarily driven by the success of companies involved in the production of computer chips and related products.
Closing at 36,232.51 points, the Nikkei 225 soared by an impressive 1,207.51 points compared to its previous value. This translates to a growth rate of approximately 3.45 percent. Another noteworthy stock index known as the TOPIX also saw an upward trend with an increase of 70.25 points or about 2.83 percent, reaching a total of 2,553.55 points.
The driving force behind this surge can be attributed to investors’ interest in purchasing stocks from chip-making companies following their positive performance in the United States on Monday. As Tokyo’s stock market remained closed on Monday due to a holiday observance, investors were eager to seize the opportunity and invest in these stocks on Tuesday.
In simpler terms, when American chip-making companies had a successful day in trading activities, it sparked enthusiasm among Japanese investors who subsequently sought out stocks from their own domestic chip manufacturers. Consequently, this led to a substantial overall increase in Japan’s stock market performance as evidenced by both the Nikkei 225 and TOPIX index.
The notable rise observed within these indices reflects people’s confidence in these specific companies and their optimistic outlook for future success.
