Nikkei 225 Index rises as technology stocks are boosted by profit optimism and a rally in U.S. stocks

Golden Finance reported that on April 27, driven by expectations that the earnings of Japanese and U.S. technology companies will improve, demand for artificial intelligence-themed stocks—such as chip manufacturers—heated up, leading Japan’s Nikkei 225 Index to rise. The Nikkei 225 Index rose 0.4% to 59,973.86 points; the Topix Index fell 0.4% to 3,701.82 points. Shoji Hirakawa, Chief Global Strategist at the Tokai Tokyo Research Institute, said: “Supported by strong earnings expectations, AI-related stocks are likely to hold steady, and the Nikkei Index may move slightly higher. These types of targets are less affected by economic fluctuations and rising oil prices, and valuations remain at high levels.” In the U.S. market, boosted by Intel’s share price hitting a record high, the chip sector index rose for the 18th consecutive trading day last Friday. The Iran situation and the stalled talks process, along with the key shipping lane in the Strait of Hormuz being effectively blocked in practice, limited gains in global stock markets. Brent crude oil futures jumped as much as 2.5%, reaching $107.97 per barrel. Among the component stocks of the Topix Index, Mitsui & Co. saw the largest decline, dropping 2.6%. Of the 1,650 stocks in the index, 527 rose, 1,002 fell, and 121 were unchanged.