Japan’s stock markets saw a welcome recovery on Tuesday, with the Nikkei gaining 1.11% to reach 38,474.66. This rally came after a challenging end to the previous week, when the Nikkei had dropped 2.63% by Friday. Investor sentiment turned positive as strong corporate earnings bolstered confidence. TDK Corporation projected a profit of 220 billion yen, which led to a 7% increase in its stock, while Nomura Holdings achieved its highest quarterly profit in four years, pushing its share price up by 8%.
The market’s response to these earnings was particularly noticeable in the brokerage sector, where confidence surged. This sector saw the most significant rise on the Tokyo Stock Exchange, with industry divisions advancing by 4.49%. Sanrio, the company behind Hello Kitty, also saw a boost, climbing 14% after raising its profit expectations.
Although optimism ran high, some concerns lingered due to political uncertainties, notably surrounding the US presidential election. The Nikkei volatility index reflected these tensions, rising by over 20%. Despite these external factors, the Tokyo Stock Exchange’s extended hours provided some stability by allowing investors additional time to react to news and make informed trades, which may help temper market fluctuations and maintain investor confidence.
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