Nikkei Posts Solid Gains After Record Levels on Wall Street
The Tokyo stock exchange posted a solid gain on Tuesday. Investors took advantage of the positive mood on Wall Street, where the Dow Jones and S&P 500 hit new record highs.
Asian manufacturers of batteries for electric vehicles were also in the spotlight because car rental company Hertz wants to order 100,000 electric cars from the American manufacturer Tesla. In addition, the results of the large American tech companies Microsoft and Google parent company Alphabet were also looked forward to, which will be released later in the day.
Japan’s main index, the Nikkei 225, finished 1.8 percent higher at 29,106.01 points. Fast Retailing, the owner of clothing chain Uniqlo, and tech investor SoftBank, two heavyweights on the Tokyo stock exchange, added 5 and 2 percent. Technology group Sony, which will publish figures on Thursday, rose more than 2 percent and touched the highest price level since 2000.
Japanese battery maker Panasonic climbed 5 percent thanks to the positive news about Tesla. In addition, the owner of battery manufacturer LG Energy Solution, South Korean LG Chem, won more than 1 percent. Chinese electric car manufacturers BYD and Xpeng also benefited from the large order in the sector, rising nearly 1 percent and more than 11 percent in Hong Kong. BYD also announced that it had received approval for the spin-off of its chip division.
The Hang Seng index in Hong Kong was down 0.5 percent in the meantime. Chinese real estate companies were under pressure. According to Chinese state media, Beijing wants to conduct a trial to levy real estate taxes in some country areas. Chinese President Xi Jinping has long wanted to introduce real estate taxes to curb speculation in the housing market and tackle the wealth disparities in the country. Debt-plagued real estate developer Evergrande fell 5 percent. Industry peers China Vanke and Country Garden lost more than 3 percent.