Tokyo Stock Exchange
17:29 JST, August 6, 2024
Tokyo’s stock market soared on Tuesday after suffering its biggest drop ever the day before.
The benchmark Nikkei 225 closed at 34,675.46, up 3,217.04 points from Monday’s close, setting a new record for a close-to-close gain. The previous record gain was 2,676.55, recorded on Oct. 2, 1990. Moreover, the index had risen more than 3,400 points at one point on Tuesday.
The broader TOPIX stock index also rose 207.06 to close at 2,434.21. This was also a record rise, surpassing the 168.51 rise on October 21, 1987.
The market was buoyed by a flood of buying orders the day after the Nikkei 225 fell to a record 4,451.28, a drop that surpassed the infamous “Black Monday” stock market crash of Oct. 20, 1987, when it fell to 3,836.48. The sharp drop created a sense of undervaluation across a broad spectrum of stocks.
More than 98% of the roughly 1,600 companies listed on the Tokyo Stock Exchange’s top-tier Prime section rose in value at some point on Tuesday. Stocks related to semiconductors led the way, with Tokyo Electron Ltd. rising about 19% and SoftBank Group Corp., which owns a major British semiconductor design company, up about 14%.
Export-related stocks such as autos and machinery were also supported by the yen’s depreciation against the dollar on the Tokyo currency market. The yen had risen to ¥141 against the dollar on Monday, but weakened to ¥146 on Tuesday morning.
The Osaka Exchange, the main market for futures and other derivatives trading, temporarily halted trading in Nikkei 225 and TOPIX futures on Tuesday morning to calm sharp swings.
