JAKARTA - The Japanese stock exchange rebounded sharply in morning trading. The Nikkei index jumped nearly 4 percent after Micron Technology Inc.'s solid financial report eased market concerns about the chip outlook for artificial intelligence or AI data centers.
Launching a report by Kyodo News, quoted Thursday, June 25, the Nikkei 225 index rose 2,679.91 points or 3.87 percent to 71,854.88. Meanwhile, the Topix, an index that reflects the movement of the broader market on the Tokyo Stock Exchange, strengthened 52.85 points or 1.33 percent to 4,016.61.
The rally came after the Nikkei lost more than 3,100 points in two trading days to Wednesday.
Micron's strong financial report eased concerns that demand for memory chips for AI data centers was weakening. Technology stocks are back in the hunt for investors.
"The market trend seen over the past few days has reversed," said Wataru Akiyama, strategist at the Investment Content Department of Nomura Securities Co., quoted by Kyodo News.
The decline in world oil prices has added to investor optimism. The benchmark crude oil price of West Texas Intermediate or WTI fell below 70 US dollars per barrel in yesterday's trading.
In the foreign exchange market, the US dollar moved within the upper range of 161 yen. Market participants are still speculating on the possibility of a rise in the Federal Reserve's interest rate. However, the strengthening of the dollar was held back as the exchange rate approached the 162 yen level, which is considered sensitive to the weakening of the Japanese currency.
In midday trading in Tokyo, the dollar was at 161.71 to 161.72 yen. The position was relatively unchanged from previous trading in New York and Tokyo.
Meanwhile, the euro was trading in the range of 1.1363 US dollars or around 183.76 to 183.77 yen.
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