Nikkei Briefly Soars over 2,000 Points to Top 50,000 in Morning

Tokyo, Nov. 20 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly jumped more than 2,000 points to climb back above 50,000 on Thursday morning. U.S. semiconductor giant Nvidia’s strong earnings and the yen’s weakening against the dollar prompted investors to step up buying of a broad range of Tokyo stocks, particularly high-priced semiconductor-related issues. At 9:28 a.m., the Nikkei index stood up 2,037.12 points, or 4.20 pct, from Wednesday at 50,574.82. “As chip-related stocks had been in a correction phase recently, they are being rapidly bought back on positive news,” an official at a major securities firm said. Among the top contributors to the Nikkei average’s surge are Advantest, SoftBank Group and Tokyo Electron. Toyota and other export-oriented issues, as well as many financial stocks, also advanced. Meanwhile, Japanese government bonds came under selling pressure. In interdealer trading in Tokyo on Thursday, the yield on the newest issue of 10-year JGBs, regarded as the country’s benchmark long-term interest rate, rose to 1.8 pct for the first time since June 19, 2008. In Tokyo currency trading, the dollar stood at 157.06-07 yen at 10 a.m. Thursday, rising sharply from 155.51-52 yen at 5 p.m. Wednesday, reflecting receding market expectations for an additional interest rate cut by the U.S. Federal Reserve by the end of the year. The yen also weakened against the euro, with the European currency standing at 181.16-18 yen, compared with 180.12-14 yen. END [Copyright The Jiji Press, Ltd.]