TOKYO: Japan’s Nikkei index closed at its highest level in almost six weeks on Wednesday, with technology stocks tracking overnight gains on Wall Street. The Nikkei share average jumped 2.67% to 27,680.26 in its biggest daily gain since May 13. The index rose for the fifth session in a row and posted its highest close since June 10. The broader Topix advanced 2.29% to 1,946.44.
US stocks closed sharply higher on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.
“The market was driven by Wall Street’s strong finish. There were no market moving cues in Japan,” said Koichi Kurose, chief strategist, Resona Asset Management.
“If there will be any catalyst in Japan, that would be Prime Minister (Fumio) Kishida’s policy, which will depend on how the power within the Liberal Democratic Party shapes up after the death of (former prime minister Shinzo) Abe.” Technology heavyweights advanced, with chip-related Tokyo Electron and Advantest jumping 4.88% and 4.71%, respectively.
Technology investor SoftBank Group rose 4.14%. Air-conditioning maker Daikin Industries gained 3.31%.
Japan Airlines rose 2.05% even as a report said the airliner would relocate about 3,000 employees to other businesses, such as low-cost carrier operations, as travel demand remains weak.
Of the Nikkei components, only three declined. Heavy machinery makers IHI Corp and Hitachi Zosen slipped 1.23% and 0.60%, respectively, while construction firm Haseko inched down 0.31%.
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