TOKYO: Japan’s Nikkei index ended at a two-month high on Friday, led by Tokyo Electron and other growth stocks, as markets tracked Wall Street higher after signs of cooling inflation fuelled hopes the US central bank might slow pace of its interest rate hike.
The Nikkei jumped 2.98% to end at 28,263.57, its highest close since Sept. 13.
The index gained 3.91% this week and marked a third straight weekly gain.
The broader Topix climbed nearly 2.12% to 1,977.76 and rose 3.26% for the week. US stocks jumped overnight as cooler-than-expected inflation data suggested the Federal Reserve’s barrage of interest rate hikes are beginning to have their intended effect.
All three major US stock indexes notched their biggest one-day percentage gains in about 2-1/2 years in a broad, robust rally.
“The fact that the growth rate of US inflation was lower than expectations had boosted Wall Street, and that raised sentiment for Japanese market,” said Takatoshi Itoshima, strategist at Pictet Asset Management Japan.
Japanese shares fall on sell-off after disappointing forecasts by heavyweights
Chip equipment maker Tokyo Electron jumped 8.43% and provided the biggest boost to the Nikkei, despite cutting its annual profit forecast. Peer Advantest climbed 9.06%.
“Investors made a bet on Tokyo Electron, which disclosed weak outlook. This is a typical example that investors are looking for something beyond the ongoing business year.”
Uniqlo brand owner Fast Retailing rose 1.96% and air-conditioner maker Daikin Industries climbed 7.19%. Bucking the trend, Nikon tanked 8.85% to become the biggest loser in the Nikkei after the camera maker posted a lower half-year net profit.
Comments
Comments are closed for this article.