Tokyo Stock Exchange gains momentum on November 22, fueled by a rise in semiconductor stocks and a remarkable surge in bitcoin, which neared $100,000, attributed to the “Trump effect.” As investor sentiment improved, the Nikkei index rose by 0.96%. Meanwhile, Chinese markets struggled, with Baidu reporting a 3% drop in revenue, contributing to declines across major indices. Oil prices also increased amid ongoing geopolitical tensions, particularly related to Ukraine.
Tokyo Stock Exchange Sees Gains as Bitcoin Nears $100,000
The Tokyo Stock Exchange experienced a notable increase on Friday, November 22, during mid-session trading, driven by a surge in semiconductor stocks, mirroring trends observed on Wall Street. In a remarkable turn of events, bitcoin soared past the $99,000 threshold, setting a new record largely attributed to the “Trump effect.”
Bitcoin Approaches the $100,000 Milestone
The leading cryptocurrency by market capitalization reached unprecedented heights during Asian trading, climbing to $99,368.31 around 06:20 GMT after first breaking the $99,000 barrier. Just a day prior, it had already surpassed the $95,000 mark. Since Donald Trump’s victory in the U.S. presidential election on November 5, bitcoin’s value has skyrocketed by an impressive 45%.
As the newly elected president prepares to take office in January, Kathleen Brooks, an analyst at XTB brokerage, commented, “Bitcoin has gained over $3,000 since Thursday morning and is inching closer to the crucial $100,000 level. This increase is fueled by speculation that Donald Trump may establish an official department for cryptocurrencies.”
Brooks further remarked, “The cryptocurrency sector stands to gain significantly from Trump’s election. Could he be the president who propels cryptocurrencies into the mainstream? There’s a greater likelihood now that Americans may be able to use crypto for tax payments.” Trump’s intentions to ease regulations within the digital currency landscape and potentially create a strategic reserve of bitcoins could lead to increased legitimacy for cryptocurrencies across the globe.
Tokyo Stock Market Rebounds, Semiconductor Stocks Shine
On the Tokyo Stock Exchange, the Nikkei index climbed by 0.96%, reaching 38,389.20 points, while the broader Topix index rose by 0.73% to 2,702.23 points. This rebound was primarily driven by semiconductor stocks, following a robust performance on Wall Street the previous day. Keita Yamaguchi from Monex Securities noted, “Given the recent sharp correction in the Japanese market, a resurgence in investor appetite was anticipated.”
Investor sentiment improved following strong results from American chip giant Nvidia, a leading player in artificial intelligence, despite initial disappointment over its sales forecasts and margin contractions. After a decline on Thursday, Japanese semiconductor companies rebounded around 03:30 GMT, with notable gains from Tokyo Electron (+2.08%) and Advantest (+0.80%). In Taipei, TSMC, a leader in advanced chips, saw a 2.97% increase.
Meanwhile, in the foreign exchange market, the Japanese yen was attempting to recover against the dollar, trading at 154.26 yen per dollar around 03:30 GMT.
Chinese Markets Struggle as Baidu Reports Decline
Conversely, Chinese markets faced declines, influenced by ongoing concerns regarding the state of the second-largest economy, the potential for heightened trade tensions, and the uncertain effects of stimulus measures introduced by Beijing.
As of 03:30 GMT, Hong Kong’s Hang Seng index was down by 1.29% at 19,348.36 points, the Shanghai composite index decreased by 0.99% to 3,336.93 points, and the Shenzhen index fell by 0.82% to 2,022.35 points. Notably, Chinese internet giant Baidu experienced a sharp decline of 8.59% in Hong Kong following its announcement of a 3% drop in quarterly revenue, highlighting a slowdown in its operations.
In the oil market, prices continued to rise during Asian trading, amid ongoing geopolitical tensions, particularly surrounding the conflict in Ukraine. North Sea Brent crude saw a slight increase of 0.24% to $74.41, while American West Texas Intermediate (WTI) rose by 0.31% to $70.31.