TOKYO: Japanese shares rose on Thursday, with technology stocks tracking overnight strength on the Wall Street, even as caution ahead of the US economic data weighed on investor sentiment.
The Nikkei share average rose 0.42% to close at 27,696.08, after climbing as much as 1% earlier in the session. The broader Topix gained 0.53% to 1,962,61.
Wall Street jumped overnight to close sharply higher as megacap growth stocks powered up due to a pause in rising interest rates while upbeat earnings reports also encouraged investors to buy.
"The early gains on the Nikkei were cut because investors started selling shares as soon as the market showed a sign of a recovery," said Chihiro Ohta from SMBC Nikko Securities.
"With the long weekend ahead of us and the US consumer data due out soon, there were not much reason for investors to buy."
Japanese markets will be closed on Friday for a public holiday.
Investors also took comfort in positive news headlines over recent days suggesting tensions between the West and Russia over Ukraine may be easing.
Shares of chip-related companies led gains on Nikkei, with Tokyo Electron and Advantest rising 1.82% and 2.78%, respectively.
Honda Motor jumped 5.61% after the automaker raised its full-year operating forecast, aided by cost-cutting measures and a weak yen despite a persistent global chip shortage.
Rival Toyota Motor lost 2.74%.
Technology investor SoftBank Group lost 2.3% and was the biggest drag on the Nikkei, followed by health equipment maker Terumo, which fell 4.84%.
Delivery services firm Yamato Holdings tanked 12.07% and was the worst performer on Nikkei.
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