The Nikkei share index of Japan grew little on Tuesday, with mining stocks and Fast Retailing, the operator of Uniqlo, leading advances due to technical support for large-cap stocks before the fixing of special quotation prices.
Japan shares edge higher: After falling earlier, the Nikkei increased by 0.41% to 32,350.58 by lunchtime, adding to the 33-year milestone reached on Monday.
Topix as a whole increased by 0.19% to 2,224.07. Takashi Nakamura, the senior strategist at the Tokai Tokyo Research Institute, stated that “stocks with a large contribution to the index were speculatively bought, supporting the market” before fixingotation prices on June 9.
After chip-related peers fell in US trading, Advantest fell 2.21%.
The benchmark Nikkei measure increased the most thanks to a rise in Fast Retailing of 1.38%.
On news that US regulators may adopt stricter capital requirements in response to previous bank failures, Mizuho Financial Group dropped 1.17%, leading to lenders’ decline.
Investors debated whether the Federal Reserve’s Open Market Committee would decide to stop raising interest rates at its next policy meeting as US markets ended down on Monday.
According to Kazuo Kamitami, strategist at Nomura Securities, “the markets are looking for a pause in the rally or dip in prices before the FOMC” in Japan and the US.
However, I firmly believe that we may be at the start of a significant rising trend.
The Nikkei has grown 15% in the last three months, surpassing other significant international indices.
The gauge’s technical indicator, the 14-day relative strength index (RSI), was at 79, above the threshold of 70, denoting an overheated market.
Among the Nikkei index’s constituents, 101 stocks fell, and 122 climbed. With an increase of 1.55%, mining businesses led all 33 industry sub-indices in increases. Losses were led by banks, which fell 1.27%.
The price of Nitto Denko’s protective film increased by 0.92% after Apple introduced an expensive new augmented-reality headset. Nitto Denko is a supplier of protective films to Apple.