Global markets: Hitachi, Sony to Nintendo — top 5 stocks that are fueling Japanese Nikkei today

Global markets: Led by gains in key Japanese companies — Hitachi, Sony and Nintendo among others — the country’s flagship Nikkei index gained over 1% on Friday, May 23. Falling US bond yields and a weaker yen supported the sentiment. Despite the gains, Japan’s Nikkei index was on track to break its four-week winning streak, according to a Reuters report.

Nikkei 225 index gained as much as 1.04% in trade today to hit the day’s high of 37,371.5 as against its last close of 36,985.87.

US Treasury yields fell overnight after a recent selloff drew some buyers at more attractive levels, with 30-year yields reaching the highest in 19 months earlier in the session. Meanwhile, a weaker yen bodes well for the exporters and drives their stock prices higher, as it increases the value of their overseas profits in yen terms when firms repatriate them to Japan.

Additionally, the core inflation rate in Japan stood at 3.5% in April, the highest since early 2023, raising the likelihood that the Bank of Japan might raise its benchmark interest rate at its next policy meeting.

Sony, Hitachi, Nintendo among top gainers

Among individual stocks, Sony, Hitachi, Nintendo, Fast Retailing and Panasonic emerged among the top gainers.

Electronics maker Sony’s share price rose nearly 2%, with its market capitalisation touching $153 billion. Similarly, Hitachi stock was up 1.90% at around 3,800 yen, while Nintendo jumped 4.5% in trade today at 11,735 yen.

Uniqlo-brand owner Fast Retailing rose 1.33%, and was among the biggest drivers of the Nikkei index. Chip-related Tokyo Electron and Advantest rose 0.68% and 1.92%, respectively.

Other Asian markets also traded on a firm note. Seoul’s Kospi climbed 0.2% to 2,597.49 and the S&P/ASX 200 in Australia gained 0.4% to 8,379.10. Meanwhile, Indian stock market indices Sensex and Nifty surged over 0.5% in early trade today.

(With inputs from agencies)

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