TOKYO: Japan’s Nikkei share average rose on Friday, led by chip-related stocks, but surrendered most of its early gains due to caution ahead of the Bank of Japan’s policy meeting and upcoming corporate earnings season.
The Nikkei index rose 0.23% to 32,493.82 by the midday break, having pulled back from a jump of as much as 1% earlier in the session.
The broader Topix reversed course to inch down 0.09% to 2,240.86.
“Investors await the outcome of the BOJ’s policy meeting and also corporate earnings,” said Jun Morita, general manager of the research department at Chibagin Asset Management.
“Investors started selling stocks when the Nikkei approached 33,000 in this environment where the outlook of the BOJ policy and corporate earnings are not clear.”
The BOJ is scheduled to hold a two-day policy meeting starting July 27.
Speculation that the central bank would tweak its ultra-loose monetary policy sent Japan’s 10-year government bond yield to its highest in 4-1/2 months on Friday. Chip-testing equipment maker Advantest jumped 5.74% to become the biggest support to the Nikkei.
Japan’s Nikkei tracks Wall Street higher on boost from chip-related stocks
Chip-making equipment maker Tokyo Electron rose 2.6%. Uniqlo-parent Fast Retailing reversed course to fall 1.18%, weighing the most on the Nikkei.
The stock was initially set to add to its gains from Thursday when the retailer reported record third-quarter profit and raised its full-year forecast as its business in China continued to recover from a pandemic slowdown.
Technology investor SoftBank Group lost 0.65%.
Machinery maker Takisawa Machine Tool was untraded amid a glut of heavy buy orders after electric motor maker Nidec announced a takeover plan of the firm, which has not yet supported the offer, raising speculation that the bid could turn hostile.
Nidec shares rose 0.85%.
Retailer Seven & i Holdings fell 5.69% to become the worst performer on the Nikkei.
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