Stock markets: Tokyo closes up 2.8 per cent, driven by technology and chip stocks. Oil prices fall
The global rally in technology shares comes after a turbulent week, during which chipmakers had suffered heavy selling
Key points
The Tokyo Stock Exchange surges. The benchmark Nikkei index closed the session up 2.87 per cent, buoyed by a rebound in technology and semiconductor shares following last week’s sharp falls; the fall in oil prices also encouraged buying. On the foreign exchange front, the yen remained stable against the dollar, at just over 158, and against the euro, at 177.30.
Asia on the rise
Overall, Asian equity markets posted gains, following Wall Street’s positive performance, and were also buoyed by a rally in technology shares and a further fall in oil prices.
South Korea’s Kospi index rose by 4 per cent, making it the best-performing index in the region, followed by Taiwan’s benchmark index and Japan’s Nikkei 225, as mentioned earlier. A broader indicator of Asian equity markets rose by 2 per cent, whilst futures on the main US indices showed minimal movement.
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Oil prices fall
On the commodities front, Brent crude fell further, settling below $92 a barrel, following a drop of almost 6 per cent in the previous trading session. President Donald Trump stated that no further attacks on Iran would be necessary, suggesting a de-escalation of the conflict, not least in light of the results of the US mid-term elections, which highlighted the lack of popular support for such a course of action.
The rally on Wall Street the day before
Yesterday, the US stock markets recorded their biggest rise in around seven months: the Nasdaq 100 rose by 3.4 per cent, driven by a surge of almost 7 per cent in the chip-making sector. This was despite a 4.3 per cent fall in Nvidia Corp. shares, following an investigation involving CEO Jensen Huang, after he admitted to a relationship with a woman described in various reports as an alleged Chinese spy.
