Japan's Nikkei hits record high as chip-related shares track US peers
Japan's Nikkei reached a record high as chip-related stocks followed U.S. peers. Investors anticipate Powell's speech for rate insights. Market sees increased likelihood of rate cut by September. Tokyo Electron and Advantest lead gains while bank stocks dip. Topix up 0.62% amid ETF payout concerns.
's share average hit a on Tuesday, with chip-related stocks tracking U.S. peers higher as investors awaited testimony from for clues for the .The Nikkei ended the midday session with a record high, up 1.49% at 41,386.8.
"The market expects Powell's comments will indicate , which lifted U.S. chip stocks overnight and the Japanese chip makers tracked the trend," said Takehiko Masuzawa, trading head of .
The S&P 500 and notched record-high closes on Monday, with Nvidia rising 2% and Intel rallying more than 6%, lifting the Philadelphia semiconductor index 1.9%.
Powell will speak to Congress on Tuesday and Wednesday.
Traders now see a greater than 75% chance of a rate cut of at least 25 basis points by September, up from last week's 60%, according to CME's FedWatch.
In Japan, chip-making equipment maker Tokyo Electron jumped 3.88%, giving the biggest support to the Nikkei. Chip-testing equipment maker Advantest climbed 3.17%.
The U.S. rate cut expectations weighed on Japanese bank stocks, sending the banking index 0.59% lower. The index for value shares inched up 0.19%, while the growth stock index jumped 1.07%.
The broader Topix was up 0.62% to 2,885.37.
Investors were cautious about the possible impact of a sell-off in exchange-traded funds on Wednesday, a move to distribute payouts, which market players estimated to be worth about 750 billion yen ($4.66 billion), said Phillip Securities Japan's Masuzawa.
($1 = 160.9800 yen)
Source: Stocks-Markets-Economic Times
